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Purpose — The chapter assesses the linkages between unreported economic activities and different individualistic and non-individualistic motives as perceived by firm management.Design/methodology/approach — The empirical research is based on a survey of the management of firms operating in the Baltic States. The survey contains information on the perceived extent of unreported activities and on a large number of firm-, sector-, and country-specific factors. A principal component analysis identifies clusters of motives for unreported activity. Regression analyses ascertain the importance of motives individually and as principal components on the extent of unreported activities.Findings — Both individualistic and non-individualistic motives are important for the prevalence of unreported activities. The individualist motives refer to the management being solely profit-oriented and self-interested. Among possible non-individualist motives, measures of government performance and perceptions of reciprocity towards the government appear to play important roles for the extent of unreported activities, but broader societal norms may also play a role.Research limitations/implications — The study considers the perceptions that managers have of unreported activities and other features. These perceptions are subjective and subject to substantial uncertainty. All results should be interpreted in light of the subjective nature of the survey answers.Social implications — Taken literally, the results suggest that stronger government performance is associated with a reduction in unreported activities, at least as perceived by the management. Broader societal developments may also be of importance.Originality/value — The inclusion of variables capturing individualistic as well as non-individualistic motives gives a comprehensive picture of factors behind unreported activities. We employ principal component analysis which allows us to cluster individual survey answers and to produce composite measures of different explanatory factors.

Digital self-expression, recently one of the most important research themes, is currently under-researched. In this context, this study aims to propose a parsimonious research model of self-extension tendency, its drivers and its outcomes. The model is tested in the context of social media engagement intentions (liking, sharing and commenting) with focal brands and across individualist versus collectivist cultures.

The model is tested in two individualist cultures (N = 230 and 232) and two collectivist cultures (N = 232 and 237) by conducting surveys in four countries (Australia, USA, Qatar and India). Nike and Ray-Ban are the focal brands studied, with Facebook serving as the targeted social networking site (SNS) platform.

Self-monitoring and self-esteem are found to drive the self-extension tendency across cultures, with stronger effects in the individualist culture than in the collectivist culture. The self-extension tendency has a relatively stronger positive influence on social media engagement intentions in the individualist culture than in the collectivist culture. This tendency is also found to mediate the link between self-monitoring, self-extension and social media engagement intentions across both cultures, albeit in different ways. In collectivist culture, self-monitoring’s influence on the self-extension tendency is moderated by public self-consciousness. The study’s findings have important theoretical and practical implications. In individualist culture, self-monitoring’s influence on the self-extension tendency is moderated by public self-consciousness.

The present findings confirm that the tendency to incorporate the brand into one’s self-concept and to further extend the self is indeed contingent on one’s cultural background. The role of public self-consciousness may vary between individualist and collectivist cultures, something recommended by past research for empirical testing.

Managers can leverage this research model to entice pro-brand social media engagement by nurturing consumers’ digital selves in terms of maneuvering their self-extension tendency and its drivers, namely, self-monitoring and self-esteem. Second, promoting the self-extension tendency and its drivers varies across cultures, with this finding offering practical cultural nuances supporting marketing managers’ decisions.

This is one of the pioneering studies that tests a cross-cultural parsimonious model based on theories of self-extension, self-monitoring and self-esteem, especially within the context of brand engagement intentions on an SNS platform.

To examine the impact of culture on customer service expectations, specifically, how individualists and collectivists use internal and external sources of information to formulate their service expectations.

The context was the airline industry and the subject pool consisted of experienced consumers. A survey was employed to measure individualism/collectivism, various internal/external information sources, and the functional and technical dimensions of “should” and “will” service expectations. Hypothesized relationships were tested using a structural equations modeling approach.

Both individualists and collectivists relied more on external information sources in formulating their service expectations, gave variable weight to the functional and technical components, and used more realistic “will” expectations to judge service offerings. Internal (external) information sources were relatively more important in forming expectations for collectivists (individualists) than for individualists (collectivists), and “will” (“should”) expectations were more diagnostic for collectivists (individualists) than for individualists (collectivists).

Generalizability of the findings is limited due to the specific industry under study (airlines), the sample (two geographically‐proximate sub‐cultures), and the scope of the cultural variables considered (individualism/collectivism).

Whether managers should leverage the functional and/or technical components of services depends in part on the cultural orientation of their customers. Managers should also recognize that customers’ usage of various information sources in forming service expectations is also, in part, culturally determined.

In this era of globalization, researchers and managers alike need to consider the subtle influences of culture on marketing theories and the formulation of service expectations respectively.

Based on a multi‐national lifestyle survey, this study investigated consumer lifestyle differences between individualist cultures (Britain and the USA) and collectivist cultures (China and Japan). Congruent with previous findings on values and lifestyles differences between idiocentrics (individualists) and allocentrics (collectivists) at the emic level (USA), this etic‐level (cross‐cultural) study found that consumers in the individualist cultures, compared with those in the collectivist cultures, were more brand‐savvy, travel‐oriented, satisfied with their lives, financially satisfied and optimistic. They were also more likely to consider themselves better managers of finances. Findings that were incongruent with those at the emic level were also discussed (e.g. dressing behavior, opinion leadership and impulsive buying). Additional findings were provided as well (e.g. family orientation, gender roles, safety/security). The findings carry practical implications for international marketers whose products/services cut across both individualist and collectivist cultures.

The authors propose that the nature of prejudice differs across cultures. A model is introduced that proposes that the interpersonal perspective associated with individualist cultures (Westerners) leads to interpersonal prejudices, whereas the intergroup perspective associated with collectivist cultures (Easterners) leads to intergroup prejudices. These prejudices, in turn, are argued to impact on the outcomes of individuals working in intercultural teams. An organisational diversity climate of openness fostered by diversity oriented HRM and the combined use of individualist and collectivist HRM policies and practices is proposed to minimize the negative effects of such prejudices can be minimized.

Increasingly, organizations in the Asia‐Pacific region are recognizing the importance of cross‐cultural management to the sustainability of their competitive edge. Although the literature is replete with cross‐cultural studies of individualism and collectivism, little information is available on the factors that foster effective individualist–collectivist interaction (ICI) within organizations. This paper attempts to provide a theoretical description of individualists and collectivists at the individual level of analysis, which offers specific testable hypotheses about the effect of self‐representation on prejudice between individualists and collectivists (ICs).

In this paper, a theoretical model is presented in which intergroup prejudices and interpersonal prejudices mediate the effects of ICI and bicultural orientation toward cross‐cultural experiences and, in which, the dissimilarity openness of the climate moderates the level and outcome of prejudices flowing from ICI.

The model depicts that the outcomes of ICI are mediated by the intergroup prejudices of collectivists and the interpersonal prejudices of individualists, which are moderated by the extent of diversity‐oriented HRM policies and practices and individuals’ orientation to cross‐cultural experiences. When workforces become culturally diverse, organizations should modify HRM practices to enable the full use of the range of skills and talents available from the diversity, and to ensure affective and behavioral costs are minimized. As globalization and international competition will continue to increase, organizations including those in the Asia‐Pacific region, should seriously re‐evaluate their HRM policies to adapt and take advantage of an increasingly culturally diverse workforce.

The model provides a useful basis upon which organization researchers and practitioners can base their respective agendas.

The purpose of this study was to examine the effects of motivational orientations on negotiation outcomes in unstable negotiation contexts. Instability was created by pitting individualists against cooperators (mixed dyads), and by giving only one of the parties information about the other party's orientation. A total of 162 subjects participated in negotiation simulations, where orientation and information were manipulated through instructions from management. The cooperative dyads got better outcomes than did the individualistic dyads. The mixed dyads did as well as the cooperative dyads when the cooperators had information, but did as badly as the individualistic dyads when the individualists had information. The process analyses indicated that the dyads with high outcomes achieved their results because the integrative activities increased over time. In the mixed dyads with informed individualists, the individualists reached higher individual outcome than their cooperative (uninformed) opponents. Thus, naive cooperators can easily be exploited.

Buying directly from farmers online has become increasingly popular in recent years. This study aims to investigate the effect of the interaction between various consumption values that drive consumers to buy directly from farmers online. The proposed conceptual framework suggests that consumers who buy online directly from farmers are driven by an interaction of weighted individualistic consumption value (i.e. an integration of values such as saving money, getting quality and fresh produce) and collectivistic values (pro-environmental behaviour and ethnocentric perception).

Data were collected using a representative sample of 576 consumers via an online access panel and analysed using AMOS SEM.

A weighted individualistic consumption value affects consumer attitudes and, consequently, consumers' intention to buy agri-food products directly from farmers. Nonetheless, individualistic consumption value is more effective in enhancing attitudes among consumers with high pro-environmental behaviour. Moreover, ethnocentric perception lowers the effect of individualistic consumption value on attitudes and enhances the positive effect of attitudes on buying intention.

This study contributes to the literature on consumer online behaviour when buying food products directly from farmers. Its originality lies in the effect of interacting individualistic and collectivistic consumption values to explain consumer motivation for this behaviour.

Why do strangers in collectivist societies act prosocially? Previous work indicates that generalized trust (trust in strangers) is necessary for prosocial behavior; however, generalized trust exists at low levels in collectivist societies. Researchers have also argued that without trust among strangers, social order is threatened. Yet, collectivist societies are not characterized by social disorder; therefore, individuals must be acting prosocially. Without generalized trust, how is this possible? In this work I argue that institutional trust (a belief that institutions induce others to act in a trustworthy manner) is responsible for prosociality in collectivist societies, not generalized trust. Does a similar relationship hold in individualist societies? Although some evidence suggests that prosocial behavior is predicated by generalized trust, other evidence indicates that the stronger predictor is institutional trust. All arguments are tested with data from the World Values Survey (WVS) with data from 14 countries. Results from regression analyses are reported. The chapter concludes with implications and directions for future work.

The purpose of this study is to examine the role of culture and future orientation in lenders’ prosocial microlending behaviors.

Three experiments examine how different cultural backgrounds, either individualistic or collectivistic, influenced microlenders’ prosocial behaviors, including the amount of microlending, the willingness to help and the length of commitment. Further, the moderating role of future orientation among individualists is investigated.

Results indicate that cultural differences influence prosocial microlending differently such that individualists give less to people in need compared to collectivists. Further, the author found that future orientation helps lenders in individualistic culture to improve prosocial microlending behaviors.

This paper emphasizes the role of cultural background and future orientation in promoting lenders’ prosocial giving in the context of microlending. The results assist social marketers to understand how to motivate giving behaviors via microlending among lenders in different cultures depending on future orientation.