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1 – 10 of over 7000The purpose of this paper is to clarify critical issues underlying the national culture dimensions of Hofstede and GLOBE, demonstrating their irrelevance to international…
Abstract
Purpose
The purpose of this paper is to clarify critical issues underlying the national culture dimensions of Hofstede and GLOBE, demonstrating their irrelevance to international marketing decision‐making.
Design/methodology/approach
In‐depth discussion of the theoretical and empirical logic underlying the national culture dimension scales and scores.
Findings
Hofstede and GLOBE national culture scores are averages of items that are unrelated and which do not form a valid and reliable scale for the culture dimensions at the level of individuals or organizations. Hence these scores cannot be used to characterize individuals or sub‐groups within countries. The national culture dimension scores are therefore of doubtful use for marketing management that is concerned with individual‐and segment‐level consumer behavior.
Research limitations/implications
Researchers should be cautious in using the Hofstede and GLOBE national culture dimension scores for analysis at the level of individuals and organizations.
Practical implications
Hofstede and GLOBE dimension scores should not be used to infer individual/managerial and group/organizational level behavior and preferences.
Originality/value
The paper follows a recent paper in IMR which was the first to discuss the common misunderstanding of the Hofstede and GLOBE national culture scales and scores, and their misapplication at the level of individuals and organizations by scholars and practitioners. Here we further expand and clarify the issues.
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The purpose of this paper is to highlight the ongoing misapplication of the Hofstede and GLOBE national culture dimensions at the individual level of analysis in both research and…
Abstract
Purpose
The purpose of this paper is to highlight the ongoing misapplication of the Hofstede and GLOBE national culture dimensions at the individual level of analysis in both research and teaching. It provides suggestions as to how these national level constructs might be used in analysis and the challenges such use presents to researchers.
Design/methodology/approach
The methodology used by Hofstede and GLOBE in their calculation of national culture dimensions is discussed together with the implications.
Findings
The consequences of the national nature of the Hofstede and GLOBE national culture dimensions are that the dimensions do not exist at the individual level. The paper explains why, in spite of this, the dimensions continue to be misapplied to individuals.
Practical implications
There are important implications for practitioners. The cultural assumptions often made about individuals in different countries based on the Hofstede and GLOBE dimension scores are invalid. Practitioners should not use national culture dimension scores in individual‐level culture related decision making.
Originality/value
The paper is the first that is focused on the invalid projection of national culture dimensions onto individuals and which highlights the origins and the ongoing nature of this problem.
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Power distance describes a central facet of national culture, because it influences the acceptance and endorsement of job characteristics related to status and power. This has…
Abstract
Purpose
Power distance describes a central facet of national culture, because it influences the acceptance and endorsement of job characteristics related to status and power. This has major implications for international human resource management, because the importance of different situational job characteristics for employee job satisfaction should differ across cultures. The purpose of this paper is to analyse if and how national power distance levels moderate different situational job characteristics’ influence on job satisfaction.
Design/methodology/approach
The authors refer to three approaches to culture: the frameworks of Hofstede and GLOBE as well as to current scores provided in a meta-analysis. The empirical findings are derived using regression analyses on a sample covering 16 nations.
Findings
The results are convincing regarding the basic job satisfaction driver model not involving culture. However, the results on power distance’s impact as well as its moderating role are strongly dependent on the culture concepts utilised. The authors provide an analysis of differences along the measurements behind the different concepts.
Originality/value
The authors can conclude that national differences in job satisfaction, as found in various studies, are a result of differences in situational dispositions to work life rather than a result of different cultural surroundings in terms of power distance. The question is whether this is due to power distance’s lack of impact or due to other factors, such as the difficulties of measuring culture. The authors discuss the differences which are due to different measurements. For ultimately confirming power distance’s moderating role and for advancing theorizing in this field, further research, which can build on the framework offered in this paper, is needed that directly measures the individual power distance facets in addition to the job characteristics and satisfaction values.
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Jon Perkins, Cynthia Jeffrey and Martin Freedman
As more companies choose to disclose corporate social responsibility (CSR) information, it is important to gain an understanding of the quality of disclosures and factors that…
Abstract
Purpose
As more companies choose to disclose corporate social responsibility (CSR) information, it is important to gain an understanding of the quality of disclosures and factors that influence quality. The purpose of this study is to examine the role of culture as a determinant of the quality of voluntary carbon emission disclosures.
Design/methodology/approach
This study uses regression analysis to test the influence of culture on the quality of carbon disclosures. The sample of this study comes from companies who voluntarily report to the carbon disclosure project. The authors operationalize the quality of disclosure using the Carbon Disclosure Leadership Index. The authors operationalize cultural values using both Hofstede’s metrics (Hofstede, 1980) and Project GLOBE (House et al., 2004).
Findings
This study predicts and finds a negative relationship between quality of disclosure and high individualism scores. This study also finds that the quality of disclosure is lower for companies located in countries with high power distance scores. The authors find that the quality of disclosure is higher for companies located in countries with gender/assertiveness scores that indicate a higher value on the environment than on the importance of economic growth. While quality is marginally related to uncertainty avoidance using Hofstede's measure, quality is not related to uncertainty avoidance using the Project GLOBE metric. The authors did not find a hypothesized negative significant relationship between quality and long-term orientation.
Practical implications
Quality is a measure of importance to users and regulators of disclosures.
Social implications
National culture is an important determinant of CSR disclosure quality.
Originality/value
This study extends the previous research by using a metric for quality based on an independent evaluation of disclosures and by the role of culture in a multi-country study.
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This study is a replication of Tosi and Greckhamer's work examining how uncertainty avoidance, power distance, individualism and masculinity/femininity are related to total CEO…
Abstract
Purpose
This study is a replication of Tosi and Greckhamer's work examining how uncertainty avoidance, power distance, individualism and masculinity/femininity are related to total CEO pay, the ratio of variable to total CEO pay and the ratio of CEO pay to the pay of the lowest level employees in 23 countries. Its main purpose is to investigate whether the replication confirms, questions or extends the results of TG2004.
Design/methodology/approach
Tosi and Greckhamer used generalized linear modeling (GLS) to analyze the relationships between Hofstede's four cultural dimensions and CEO compensation. In the replication, the author used GLS to retest the original seven hypotheses with more recent data from Hofstede and test the same hypotheses relying on cultural values and practices scores from the GLOBE study. Further, using firm-level data unavailable for the original study, the author analyzed fixed and random effects in mixed models.
Findings
The replication generally confirms the findings of the original study for the effects of power distance, individualism and masculinity on CEO total pay. Results are mixed or indicate the lack of significant effect for other relationships.
Research limitations/implications
This study reexamines the effects of country-level contextual variables in the area of CEO compensation.
Originality/value
The replication presents firm-level CEO compensation and firm performance data from 21 countries, extending the original study and unveiling possible spurious effects.
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Francesco Calza, Chiara Cannavale and Ilaria Tutore
The purpose of this paper is to verify if and how national culture affects firms’ environmental proactivity, by using a specific index: the Carbon Disclosure Score (CDS).
Abstract
Purpose
The purpose of this paper is to verify if and how national culture affects firms’ environmental proactivity, by using a specific index: the Carbon Disclosure Score (CDS).
Design/methodology/approach
The study, an analysis of two linear regression models, examines how cultural values, measured by the Global Leadership and Organizational Behavior Effectiveness Research “should be” scores, affect companies’ environmental proactivity measured by CDS. Data about CDS derive from the Carbon Disclosure Project, which monitors Global 500 companies each year.
Findings
The analysis reveals that the values of in-group collectivism, performance orientation, assertiveness and uncertainty avoidance negatively affect firms’ environmental proactivity, while future orientation and gender egalitarianism have a positive impact.
Research limitations/implications
In spite of the limitations inherent in the indicator and the limited sample, the paper has some interesting implications. On a theoretical level, this study extends prior research in the field of organizations and natural environment, by examining the specific role exerted by national cultural dimensions on firms’ environmental proactivity.
Practical implications
From a practical standpoint, the study suggests that corporations and policy regulators should be sensitive toward national idiosyncrasies and formulate the environmental strategies according to the cultural values and contextual environment of the relevant region. Creating policies based on cultural values and adapting policies to a country’s culture can improve the effectiveness of environmental policies and raise individual and corporation awareness on the topic.
Originality/value
Most contributions consider environmental strategy at the national level. This study, instead, focusses on the effects of national culture on the environmental proactivity of firms.
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– The purpose of this paper is to respond to the article by Brewer and Venaik (IMR
Abstract
Purpose
The purpose of this paper is to respond to the article by Brewer and Venaik (IMR
Design/methodology/approach
Based on experience in the study of consumer behavior, a critical analysis of applications of dimensional models of national culture in the existing marketing literature is presented.
Findings
Differences between models are caused by confusing value types, design and type of questions used.
Practical implications
Researchers tend to select one of several models for analyzing cross-cultural variables in consumer behavior, marketing and advertising without understanding the basic differences between the models. Ignorance of the fundamental and conceptual differences may cause the formulating of wrong hypotheses.
Originality/value
Next to highlighting the misuse of dimensions to individuals, this paper focuses on the origin of the differences between the models from a marketing point of view.
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In spite of the common label, uncertainty avoidance (UA) across Hofstede and GLOBE models has been found to be negatively correlated and capture distinct concepts. Nevertheless…
Abstract
Purpose
In spite of the common label, uncertainty avoidance (UA) across Hofstede and GLOBE models has been found to be negatively correlated and capture distinct concepts. Nevertheless, the empirical research focusing on the impact of UA on a variety of constructs has strongly neglected this conceptual difference, assuming them equivalent constructs and using one as an alternative for the other, or merely applying one for reasons other than conceptual relevance. Challenging this taken-for-granted assumption, the purpose of this paper is to show that their conceptual difference matters by showing that their causal impact on a given construct is not consistent given their conceptual difference.
Design/methodology/approach
Hypotheses are tested using hierarchical linear modeling analyses on firms from Compustat Global Database across 44 countries within the time span of 1990–2017.
Findings
The findings show that the causal effects of Hofstede UA index (UAI) and GLOBE UA society practices on the risk-taking behavior of firms are not consistent. Unlike Hofstede UAI, GLOBE UA (society practices) does not reduce the risk-taking behavior of firms.
Originality/value
This study is valuable in that it raises awareness on the conceptual differences between UA dimensions across Hofstede vs GLOBE and challenges one of the taken-for-granted assumptions in the empirical literature that the two are equivalent by empirically showing that their impacts on a given construct (i.e. the risk-taking behavior of firms) are not consistent.
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Ali Rezaeian, Maryam Tehrani and Nyma Lotfi Foroushani
The purpose of this paper is to clarify the effect of communication satisfaction (CS) on employees’ organizational citizenship behaviors (OCBs), considering the role of…
Abstract
Purpose
The purpose of this paper is to clarify the effect of communication satisfaction (CS) on employees’ organizational citizenship behaviors (OCBs), considering the role of organizational trust as a mediating variable within the Iranian cultural context.
Design/methodology/approach
This paper builds a conceptual model, based on literature review, to illustrate the effect of communication satisfaction on employees’ OCBs within the Iranian national context. Out of 194 questionnaires distributed among the employees of Iranian Water Resources Management Company, one of the well‐recognized companies in the Iranian water industry, 173 filled in the questionnaires completely.
Findings
The paper addresses the main components forming communication satisfaction, organizational trust and OCBs referring to the role of Iranian cultural dimensions. The result of analyzing the research model by using structural equation modeling (SEM) technique shows that communication satisfaction has a positive effect on organizational trust. It also depicts that organizational trust has a positive effect on OCBs and organizational trust plays a mediating role in the relationship between communication satisfaction and OCBs in an Iranian organization.
Originality/value
The authors developed a new conceptual model based on the literature review and field research to present novel insights into the role of in‐group collectivism, institutional collectivism, human orientation and high‐low cultural context as important cultural dimensions in the study of communication satisfaction, organizational trust and OCBs.
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The purpose of this paper is to investigate which cross-country characteristics influence the going-public decisions and how the cultural values of the countries affect initial…
Abstract
Purpose
The purpose of this paper is to investigate which cross-country characteristics influence the going-public decisions and how the cultural values of the countries affect initial public offering (IPO) firms’ profitability and risk of financial distress.
Design/methodology/approach
Using a sample of privately held and firms that went public on the European and Asian Stock Exchanges between 2007 and 2011, this paper applies probit model and ordinary least squares regression to examine which cross-country characteristics could affect the decision to go public and how cultural values affect the profitability and risk of IPO firms.[AQ1] In addition, to overcome multicollinearity concerns caused by the use of Global Leadership and Organizational Behavioural Effectiveness culture dimensions, this paper factor analyses the dimensions using principal component analysis.
Findings
The results are as follows. First, this paper finds that firms in tradition-oriented countries are less likely to go public, while firms in result-oriented countries are more likely to hold an IPO. Second, this paper finds that country characteristics (i.e. financial deepening and taxation) affect the going-public decision. Third, this paper documents that IPO firms in traditionally and result-oriented countries have positive profitability and less risk of financial distress.
Practical implications
This study is intended for all those European and Asian policymakers and managers who want to improve their knowledge about what different indicators can establish the decision of firms that going-public facing different stages of their lifecycle. Specifically, policymakers wishing to promote IPO-activity in their countries may find it useful to strengthen the set of formal-institutions both to reduce corporate-taxation and to reduce the uncertainty associated with first-time share issuance and investment in such initiatives. This study is also intended for managers of companies that are not yet publicly-traded on their national stock-markets to be helpful to their decision-making processes.
Originality/value
This paper aims to extend the growing literature on the effects of cross-country factors on economic decision-making in finance and particularly adds to research that investigates the influence of these factors on the IPO decision of European and Asian firms.
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