The influence of culture and framing on investment decision-making: The case of Vietnam and Germany
Cross Cultural & Strategic Management
ISSN: 2059-5794
Article publication date: 21 September 2018
Issue publication date: 31 October 2018
Abstract
Purpose
Cultural studies in business and economics research are still limited to particular cultures. Knowledge on cultural differences may help international corporations to adapt management practices according to the markets they are operating in. The purpose of this paper is to study the issue of escalation of commitment and framing in a new cultural setting involving Germany and Vietnam. This setting is unique and particularly interesting, for Germany being the biggest European market and Vietnam being one of the fastest growing emerging markets in Asia.
Design/methodology/approach
The authors use a lab experiment with student participants from Germany and Vietnam.
Findings
In a 2×2 in between-experiment, the authors find strong support that Vietnamese participants have a stronger tendency to invest additional resources and evidence that negatively framed information leads to the higher escalation of commitment. Implications are discussed.
Originality/value
The unique empirical comparison is important because differences between other western and eastern countries do not necessarily generalize to the setting.
Keywords
Citation
Fehrenbacher, D., Roetzel, P.G. and Pedell, B. (2018), "The influence of culture and framing on investment decision-making: The case of Vietnam and Germany", Cross Cultural & Strategic Management, Vol. 25 No. 4, pp. 763-780. https://doi.org/10.1108/CCSM-10-2017-0139
Publisher
:Emerald Publishing Limited
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