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Book part
Publication date: 17 July 2015

William W. Stammerjohan, Maria A. Leach and Claire Allison Stammerjohan

This study extends the budgetary participation–performance/cultural effects literature by isolating and examining the moderating effect of one cultural dimension, power

Abstract

Purpose

This study extends the budgetary participation–performance/cultural effects literature by isolating and examining the moderating effect of one cultural dimension, power distance, on the budgetary participation–performance relationship. Isolating the impact of power distance is important to this literature because of the fact that participative budgeting remains a possibly underutilized management tool in high power distance countries.

Methodology/approach

We regroup our multinational sample of managers by power distance level, and employ multigroup structural equation modeling (SEM) and a set of nonparametric bootstrap tests to triangulate our findings.

Findings

We find that the majority of our managers from three high power distance countries (Mexico, Korea, and China) score in the lower half of the power distance scale, that there is significant correlation between participation and performance in both the high and low power distance subsamples, but that the mechanisms connecting participation to performance are quite different. While job satisfaction plays a role in connecting budgetary participation and performance among low power distance managers, job relevant information alone connects budgetary participation and performance among their high power distance counterparts.

Originality/value

The primary contribution of our work is that we not only demonstrate that budget participation can improve the performance of subordinate managers in high power distance cultures, but also provide evidence of how and why this is plausible. First managers may not share the same high power distance tendencies of their countrymen, and second, the communication aspect of budget participation appears to be more important for increased performance among those with high power distance tendencies.

Details

Advances in Management Accounting
Type: Book
ISBN: 978-1-78441-650-8

Keywords

Article
Publication date: 7 April 2021

Ying Zhang, Yuran Li, Mark Frost, Shiyu Rong, Rong Jiang and Edwin T.C. Cheng

This paper aims to examine the critical role played by cultural flow in fostering successful expatriate cross-border transitions.

Abstract

Purpose

This paper aims to examine the critical role played by cultural flow in fostering successful expatriate cross-border transitions.

Design/methodology/approach

The authors develop and test a model on the interplay among cultural intelligence, organizational position level, cultural flow direction and expatriate adaptation, using a data set of 387 expatriate on cross-border transitions along the Belt & Road area.

Findings

The authors find that both organizational position level and cultural flow moderate the relationship between cultural intelligence and expatriate adaptation, whereby the relationship is contingent on the interaction of organizational position status and assignment directions between high power distance and low power distance host environments.

Originality/value

Previous research has shown that higher levels of cultural intelligence are positively related to better expatriate adaptation. However, there is a lack of research on the effect of position difference and cultural flow on such relationship. Our study is among the first to examine how the interaction between cultural flow and organizational position level influences the cultural intelligence (CI) and cultural adjustment relationship in cross-cultural transitions.

Details

Cross Cultural & Strategic Management, vol. 28 no. 2
Type: Research Article
ISSN: 2059-5794

Keywords

Article
Publication date: 27 August 2021

Xiaoyu Wang and Chenhong Ding

Country of origin (COO) effect refers to the influence of COO on consumers' perception and evaluation of a product. This research explores the impact of consumers' power

Abstract

Purpose

Country of origin (COO) effect refers to the influence of COO on consumers' perception and evaluation of a product. This research explores the impact of consumers' power distance on COO effect.

Design/methodology/approach

We conducted two experiments to test the relevant hypotheses.

Findings

The results indicate that power distance has a polarizing influence on COO effect. That means, for products from countries with good images, the higher the consumers' power distance, the better their evaluation of the products; while for products from countries with poor images, the higher the power distance, the worse their evaluation of the products. The research also finds the moderating effect of consumers' competence–related country-related affect (CRA). When holding positive competence–related CRA, for products from countries with good images, the higher the consumers' power distance, the better their evaluation of the products; for products from countries with poor images, consumers' power distance has no effect. When having negative competence–related CRA, for products from countries with poor images, the higher the consumers' power distance, the worse their evaluation of the products; for products from countries with good images, power distance has no effect.

Originality/value

This study finds that depending on the perception of COO image, power distance not only improves the evaluation of products but also lows such evaluation, reflecting a two-way polarizing feature.

Details

Journal of Contemporary Marketing Science, vol. 4 no. 2
Type: Research Article
ISSN: 2516-7480

Keywords

Article
Publication date: 24 July 2009

Satyabhusan Dash, Ed Bruning and Manaswini Acharya

The purpose of this paper is to investigate the relationship between Canadian and Indian consumers' national cultural orientations and banking service quality…

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Abstract

Purpose

The purpose of this paper is to investigate the relationship between Canadian and Indian consumers' national cultural orientations and banking service quality expectations. Using two of Hofstede's five cultural dimensions operationalized at the individual level, and five dimensions of service quality from Parasuraman et al.'s SERVQUAL scale, the aim is to develop and test hypotheses relating national culture values to service quality expectations.

Design/methodology/approach

The study is quantitative in nature, using surveys (online and written) from respondents in Canada and India. Data were analyzed using dummy variable regression and structural equation modeling.

Findings

The results show that the importance of various SERVQUAL dimensions is related to Hofstede's power distance and individualism cultural dimensions both at the individual and national levels. More specifically, consumers low on power distance expect highly responsive and reliable service. High power distance customers attach higher importance to tangible service attributes. Consumers high on individualism expect lower empathy and assurance from service providers. Furthermore, Indian consumers attach higher importance to tangible attributes, whereas Canadian consumers find service reliability more important. However, differences in overall service quality expectations are not significantly different across the two countries.

Practical implications

The results suggest that managers must be aware of the cultural values of the buyer/client in order to fully understand the most effective means of establishing and nurturing the service delivery process and, consequently, establishing service quality expectations. Banks will be more successful when service delivery is in tune with cultural imperatives, particularly sub‐group cultural imperatives.

Originality/value

The study provides an original insight into the manner in which national culture impacts on service quality expectations. Furthermore, the study identifies individual sub‐cultural influences that shape service quality expectations.

Details

International Journal of Bank Marketing, vol. 27 no. 5
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 27 March 2020

Wenxue Lu, Yuxin Wei and Rui Wang

This paper aims to reveal the effects of an organisation’s bargaining power on its negotiating behaviours (including integrating, obliging, compromising, dominating and…

1000

Abstract

Purpose

This paper aims to reveal the effects of an organisation’s bargaining power on its negotiating behaviours (including integrating, obliging, compromising, dominating and avoiding) in the context of inter-organisational conflict in construction projects and investigate how organisational power distance orientation moderates the relationship between the organisation’s bargaining power and its negotiating behaviours.

Design/methodology/approach

The authors conducted a questionnaire survey among practitioners in the Chinese construction industry with the final sample consisting of 219 responses. A structural equation model was used to analyse the data and test the hypotheses.

Findings

The results reveal that an organisation’s bargaining power is positively associated with dominating and integrating behaviours but negatively associated with obliging and avoiding behaviours. Additionally, bargaining power is found to be negatively associated with compromising behaviour when the organisation has a high power distance orientation. Finally, a higher degree of power distance orientation strengthens the positive effect bargaining power has on dominating behaviour.

Practical implications

The findings can help practitioners to predict the negotiating behaviours of a counterpart according to its bargaining power and the power distance in its organisational culture. This can then enable practitioners to adjust their strategies accordingly and steer the negotiations towards a win–win outcome.

Originality/value

This study applies the approach-inhibition theory of power to inter-organisational negotiations and empirically tests the relationship between an organisation’s bargaining power and its negotiating behaviours in the context of construction projects. Additionally, this study reveals that organisational power distance orientation moderates this relationship.

Details

International Journal of Conflict Management, vol. 31 no. 5
Type: Research Article
ISSN: 1044-4068

Keywords

Article
Publication date: 17 October 2019

Haili Zhang and Michael Song

The purpose of this paper is to examine the moderating effects of market growth on the relationships between power distance and new venture performance and between market…

Abstract

Purpose

The purpose of this paper is to examine the moderating effects of market growth on the relationships between power distance and new venture performance and between market information utilization in new ventures and new venture performance in China.

Design/methodology/approach

This study uses content analyses and OLS regressions.

Findings

First, power distance and market information utilization have positive effects on Chinese new venture performance. Second, in a low market growth environment, increasing power distance increases Chinese new venture performance. Third, in a high market growth environment, increasing power distance decreases, not increases, Chinese new venture performance.

Research limitations/implications

This study contributes to the market orientation literature by examining the moderating effects of market growth on the market information utilization-performance relationship in China. This study also adds to the existing understanding of power distance and market information utilization in contingency theoretical perspective.

Practical implications

Chinese new ventures operating in a high-growth market should reduce power distance. However, when operating in the low market growth industry, Chinese new ventures should increase power distance. While all Chinese new ventures should use market information to make decisions, the roles of market information are more important for Chinese new ventures operating in high market growth industries than for those operating in low market growth industries.

Originality/value

This study examines the moderating effects of market growth on the positive relationship between power distance and Chinese new venture performance and the positive relationship between market information utilization on Chinese new venture performance in the same model.

Details

Chinese Management Studies, vol. 13 no. 4
Type: Research Article
ISSN: 1750-614X

Keywords

Article
Publication date: 10 September 2020

Chanki Moon and Ángel Sánchez‐Rodríguez

Antecedents and influences of workplace incivility have recently been studied in many areas of research but there is still a lack of consideration for the impact of…

Abstract

Purpose

Antecedents and influences of workplace incivility have recently been studied in many areas of research but there is still a lack of consideration for the impact of culture. Theoretical considerations for the present research are based on the cultural dimensions of power distance and tightness/looseness because the collective levels of power distance are similar between Korea and Spain, but the collective levels of tightness/looseness are different between the two countries. The purpose of this paper is to examine whether individuals’ occupational position affects their normative reactions to incivility differently.

Design/methodology/approach

Participant (victim)’s (those who react to uncivil behaviors) social power (low vs high) and perpetrator’s (those who exhibit uncivil behaviors) social power (low vs high) were experimentally manipulated; all participants were randomly assigned to one of four perpetrator × victim conditions in relation to hierarchical positions (Ntot = 467).

Findings

The results suggest that the level of social and personal acceptability was greater either among Koreans than Spanish at a collective level or among people who endorsed higher power distance and tightness values. All in all, the findings highlight cultural influences on the importance of social hierarchy as a factor that can impact the people’s normative reactions to incivility.

Originality/value

The findings broaden our understanding of the psychology of employees in relation to incivility, by simultaneously considering the influences of culture (power distance and tightness/looseness) and social power.

Details

International Journal of Conflict Management, vol. 32 no. 2
Type: Research Article
ISSN: 1044-4068

Keywords

Article
Publication date: 4 September 2019

Jen-Shou Yang

The purpose of this paper is to investigate the moderating effects of power distance and collectivistic orientations on the effectiveness of intrinsic, extrinsic and…

Abstract

Purpose

The purpose of this paper is to investigate the moderating effects of power distance and collectivistic orientations on the effectiveness of intrinsic, extrinsic and reciprocal motivators in promoting employees’ willingness to cooperate for organizational interest. An integrated theoretical framework which incorporated cultural influence on need priority and on legitimacy of social exchange was established to develop the hypotheses.

Design/methodology/approach

This study used the methodology of information-integration theory to test the research hypotheses.

Findings

This study found that power distance orientation enhanced the effectiveness of extrinsic motivator but mitigated that of intrinsic motivator, and was irrelevant to that of reciprocal motivator. In contrast, collectivistic orientation mitigated the effectiveness of extrinsic motivator but enhanced that of reciprocal motivator, and was irrelevant to that of intrinsic motivator.

Practical implications

Managers may use reciprocal motivators for employees with high collectivism in order to increase their willingness to cooperate for the interest of the organization. Meanwhile, extrinsic motivators may be utilized for employees with high power distance but may not be as effective for those with low power distance. However, managers should not expect intrinsic motivators to be as attractive to those with high power distance as to those with low power distance.

Originality/value

By integrating multiple cultural orientations and multiple work motivators in one study, this research clarified the differential moderating effects of power distance and collectivistic orientations on the effectiveness of intrinsic, extrinsic and reciprocal motivators in promoting employees’ willingness to cooperate. Potential confounding problems in prior studies derived from the correlation between cultural values and coexistence of multiple motivators were discussed.

Details

Management Decision, vol. 58 no. 4
Type: Research Article
ISSN: 0025-1747

Keywords

Book part
Publication date: 2 December 2019

Frank Fitzpatrick

Abstract

Details

Understanding Intercultural Interaction: An Analysis of Key Concepts
Type: Book
ISBN: 978-1-83867-397-0

Article
Publication date: 21 December 2017

Nancy Chen, Mike Chen-ho Chao, Henry Xie and Dean Tjosvold

Scholarly research provides few insights into how integrating the western values of individualism and low power distance with the eastern values of collectivism and high

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Abstract

Purpose

Scholarly research provides few insights into how integrating the western values of individualism and low power distance with the eastern values of collectivism and high power distance may influence cross-cultural conflict management. Following the framework of the theory of cooperation and competition, the purpose of this paper is to directly examine the impacts of organization-level collectivism and individualism, as well as high and low power distance, to determine the interactive effects of these four factors on cross-cultural conflict management.

Design/methodology/approach

This is a 2×2 experiment study. Data were collected from a US laboratory experiment with 80 participants.

Findings

American managers working in a company embracing western low power distance and eastern collectivism values were able to manage conflict cooperatively with their Chinese workers. Moreover, American managers working in a company valuing collectivism developed more trust with Chinese workers, and those in a company culture with high power distance were more interested in their workers’ viewpoints and more able to reach integrated solutions.

Originality/value

This study is an interdisciplinary research applying the social psychology field’s theory of cooperation and competition to the research on employee-manager, cross-cultural conflict management (which are industrial relations and organizational behavior topics, respectively), with an eye to the role of cultural adaptation. Furthermore, this study included an experiment to directly investigate the interactions between American managers and Chinese workers discussing work distribution conflict in four different organizational cultures.

Details

Cross Cultural & Strategic Management, vol. 25 no. 1
Type: Research Article
ISSN: 2059-5794

Keywords

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