Acquirers’ Cultural Background and the Use of Earnouts

2018 ◽  
Vol 36 (1) ◽  
pp. 30-55
Author(s):  
Corinna Ewelt-Knauer ◽  
Johannes Gefken ◽  
Thorsten Knauer ◽  
David Wiedemann
Keyword(s):  
Cultural Differences ◽  
Power Distance ◽  
Cultural Background ◽  
Merger And Acquisition ◽  
Uncertainty Avoidance ◽  
Negatively Associated ◽  
Economic Theories ◽  
Country Level ◽  
Contractual Choice

This study investigates the effects of culture on the design of merger and acquisition (M&A) contracts. Specifically, we empirically analyze how the acquirer’s cultural background influences the contractual choice to implement an earnout. We operationalize the acquirer’s cultural background by using Hofstede’s country-level indices for individualism, power distance, uncertainty avoidance, masculinity, and long-term orientation. Using a comprehensive sample of 9,669 M&As, we find that earnout use is significantly positively associated with the acquirer’s masculinity level. Furthermore, we provide evidence that earnout use is significantly negatively associated with the acquirer’s power distance and uncertainty avoidance scores. Our study contributes to the literature by demonstrating that, in addition to economic theories, cultural differences are important in understanding the heterogeneity of earnout use.

Outside the Head and Outside Individualism-Collectivism

2011 ◽  
Vol 43 (2) ◽  
pp. 299-327 ◽  
Author(s):  
Marika Lamoreaux ◽  
Beth Morling
Keyword(s):  
Cultural Differences ◽  
Cultural Difference ◽  
Power Distance ◽  
Uncertainty Avoidance ◽  
Cultural Products ◽  
Cultural Traits ◽  
Meta Analyses

Cultural differences and similarities can be documented not only at the level of the psyche (people’s motivations, beliefs, emotions, or cognitions) but also via shared, tangible representations of culture (such as advertising, texts, architecture, and so on). In this report, the authors present the results of some exploratory meta-analyses of cultural products. Data were sufficient to analyze a variety of cultural traits: positivity, modernity, high (vs. low) context, uncertainty avoidance, and power distance, as well as other dimensions. Thus, this article documents cultural products that measured traits other than individualism-collectivism, the trait the authors analyzed in an earlier article. The data reinforce the value of studying cultural products and fit with recent calls to branch out from the familiar, individualism-collectivism construct into new axes of cultural difference.

Emotional intelligence and entrepreneurial intentions: an exploratory meta-analysis

2018 ◽  
Vol 23 (5) ◽  
pp. 497-512 ◽  
Author(s):  
Chao Miao ◽  
Ronald H. Humphrey ◽  
Shanshan Qian ◽  
Jeffrey M. Pollack
Keyword(s):  
Emotional Intelligence ◽  
Positive Relationship ◽  
Meta Analysis ◽  
Power Distance ◽  
Entrepreneurial Intention ◽  
Uncertainty Avoidance ◽  
Entrepreneurial Intentions ◽  
Content Type ◽  
Meta Analyses

Purpose The topic of entrepreneurial intention, which refers to a person’s degree of interest in creating a new business venture, has received close scrutiny in the entrepreneurship literature. The empirical results regarding the relation between emotional intelligence (EI) and entrepreneurial intention were nevertheless mixed across studies. Based on fit theory and trait activation theory, the purpose of this paper is to explain the fundamental reason for the mixed findings in the extant literature thus far. Design/methodology/approach Random-effects meta-analyses, based on 12 studies (along with 12 effect sizes), were performed to not only investigate the overall relation between EI and entrepreneurial intention but also to examine the moderators (i.e. individualism (vs collectivism), masculinity (vs femininity), power distance, long-term orientation (vs short-term orientation), uncertainty avoidance, and indulgence (vs restraint)) that influence this relation. Findings The results of this meta-analysis demonstrated that EI is positively related to entrepreneurial intention; the positive relationship between EI and entrepreneurial intention is stronger in long-term-oriented cultures; and the positive relationship between EI and entrepreneurial intention does not significantly differ based on a culture’s level of collectivism, masculinity, power distance, uncertainty avoidance, and indulgence. Originality/value This meta-analysis advances the current understanding of the relation between EI and entrepreneurial intention from cross-cultural perspectives.

How do national cultures impact the operations strategy process?

2018 ◽  
Vol 38 (10) ◽  
pp. 1937-1963 ◽  
Author(s):  
Camila Lee Park ◽  
Ely Laureano Paiva
Keyword(s):  
Corporate Strategy ◽  
Power Distance ◽  
Functional Integration ◽  
Uncertainty Avoidance ◽  
Operations Strategy ◽  
Manufacturing Strategy ◽  
National Cultures ◽  
Content Type ◽  
Cultural Aspects

PurposeThe purpose of this paper is to analyze the extent to which different patterns of cross-functional integration and the operations strategy (OS) process may be explained by national cultures differences.Design/methodology/approachPerceptual survey data from 105 manufacturing plants in four countries were used to validate the constructs and to test the hypotheses. The plants are located in two Western and two Eastern countries with different industrialization and development backgrounds (Brazil, China, Germany and South Korea). CFA validated the constructs, and ANOVA andt-tests evaluated the differences between levels of four Hofstede’s elements (i.e. power distance, individualism vs collectivism, uncertainty avoidance and long-term vs short-term orientation) on the OS process enablers (i.e. leadership for cross-functional integration and functional integration) and elements (i.e. manufacturing strategy linkage to corporate strategy and formulation of manufacturing strategy).FindingsResults suggest that different OS and OM processes are present in different national cultures. Leadership for cross-functional integration and manufacturing strategy linkage to corporate strategy differ between levels of power distance, individualism vs collectivism and uncertainty avoidance. Functional integration and formulation of manufacturing strategy also present differences according to the degree of individualism vs collectivism and long-term orientation.Originality/valueResults indicate that national culture is a key aspect for the OS process. Prior studies usually do not consider cultural aspects. Therefore, the OS process varies in different countries and contexts. Managers need to adjust their OS process when they are developing a global OS.

scholarly journals HOFSTEDE’S CULTURE VALUES SURVEY IN ALBANIAN PRIVATE HOSPITALS

2020 ◽  
Vol 3 ◽  
pp. 41-50
Author(s):  
Irma Gjana ◽  
Xhimi Hysa
Keyword(s):  
Survey Data ◽  
Power Distance ◽  
Uncertainty Avoidance ◽  
Cultural Dimensions ◽  
War And Peace ◽  
Private Hospitals ◽  
Dimension Score ◽  
Technological Developments ◽  
Over Time

The purpose of this paper is to highlight the changes that Albanian cultural dimensions’ scores have undergone over time. Hofstede’s Value Survey Module 2013 (VSM 2013) has been applied to examine the six dimensions of culture; power distance, individualism, masculinity, uncertainty avoidance, long term orientation and indulgence. The survey data (N=387) was collected in the two largest private hospitals in Albania. Globalization, technological developments, economical flourishing and crisis, war and peace, influence the shifting of national cultural dimensions’ scores toward negative or positive values [1]. In this study we aim to show the shifting of Albanian culture value scores in time, and compare the results with the ones predicted by the researchers of the field. The results obtained show a negative shift on Albanian culture dimension score of power distance, individualism, long term orientation and indulgence, and a positive shift on masculinity and uncertainty avoidance values. Implications for researchers of the field are discussed in the paper.

scholarly journals Relationships of Cultural Dimensions and Lactation Patterns

2020 ◽  
Author(s):  
Elham Alidadi Shamsabadi ◽  
Mitra Savabi-Esfahani ◽  
Ali Hashemianfar
Keyword(s):  
Exclusive Breastfeeding ◽  
Power Distance ◽  
Cross Sectional Study ◽  
Uncertainty Avoidance ◽  
Cultural Dimensions ◽  
Cultural Dimension ◽  
Short Term ◽  
Cross Sectional ◽  
Significance Level

Abstract Background Proper nutrition is essential for infant growth and health. Exclusive breastfeeding is the best pattern for feeding infants in the first 6 months of life. On the other hand, lactation patterns may be influenced by cultural factors. The present study aimed to determine relationships of cultural dimensions and lactation patterns.Methods The present cross-sectional study was conducted on 452 mothers with 6-month and younger infants. Hofstede's cultural dimensions, Power Distance, Individualism vs. collectivism, Masculinity vs. Femininity, Uncertainty Avoidance, Long-Term vs. Short-Term Orientation, and Indulgence vs. Restraint were assessed using a self-administered structured questionnaire. Data was analyzed using descriptive and analytical tests (independent t-test, Eta, phi and Cramer coefficients) and SPSS 18 at a significance level of less than 0.05.Results In the masculinity-femininity dimension, the mean score of exclusive breastfeeding pattern was higher than the non-exclusive breastfeeding (3± 0.48, 2.48±0.50) and there were statistical significant differences between groups (P = 0.03). However, despite different mean scores of power distance, individualism-collectivism, uncertainty avoidance, long term- short term orientation, indulgence- restraint in different breastfeeding patterns, the differences were not statistically significant.Conclusions Masculinity-femininity as a cultural dimension was associated with lactation patterns, so that mothers with greater orientation towards masculinity had higher focus on gender roles of a woman such as breastfeeding and they had greater exclusive breastfeeding. Therefore, some cultural dimensions should be taken into consideration in training and counseling for maternal breastfeeding.

scholarly journals Innovation in Isolation? COVID-19 Lockdown Stringency and Culture-Innovation Relationships

2021 ◽  
Vol 12 ◽  
Author(s):  
Hansika Kapoor ◽  
Arunima Ticku ◽  
Anirudh Tagat ◽  
Sampada Karandikar
Keyword(s):  
Power Distance ◽  
Uncertainty Avoidance ◽  
Cultural Dimensions ◽  
Government Response ◽  
Country Level ◽  
Global Innovation ◽  
General Power ◽  
High Power Distance ◽  
The Government ◽  
The Relationship

In a bid to curb the spread of COVID-19 in 2020, several countries implemented lockdown procedures to varying degrees. This article sought to examine the extent to which country-level strictness, as measured by the Government Response Stringency Index (2020), moderated the relationship between certain cultural dimensions and estimates of national innovation. Data on 84 countries were collated for Hofstede’s cultural dimensions (2015), and from the Global Innovation Index (2020). Owing to the robust relationships between innovation and the dimensions of uncertainty avoidance, power distance, and individualism, these were used in moderation analyses. In general, power distance was inversely related to innovation, whereas individualism was directly related to it. Results indicated that collectivist and high power distance countries showed lower innovation, irrespective of levels of government stringency as a response to COVID-19. On the other hand, among individualistic and low power distance countries, lower innovation was associated with increased stringency (e.g., blanket restrictions on movement). Higher innovation was observed when such countries had a less severe government response. The dimension of uncertainty avoidance was not significantly associated with innovation at the country level. The implications of lockdowns on general innovation, its inputs, and outputs are discussed in the context of cultural dimensions and country-level policies.

scholarly journals Personal Entrepreneurial Attributes and Intentions to Start Business: The Moderating Role of Culture

2019 ◽  
Vol 10 (1) ◽  
Author(s):  
Syed Danish Haider Naqvi ◽  
Danish Ahmed Siddiqui
Keyword(s):  
Risk Taking ◽  
Power Distance ◽  
Uncertainty Avoidance ◽  
Cultural Dimensions ◽  
Path Model ◽  
Entrepreneurial Intentions ◽  
Positive Interaction ◽  
Moderation Effect ◽  
Moderating Role

Culture influence the entrepreneurial intentions, which make a contribution to entrepreneurial evolution. This study investigates that whether (Hofstede, Dimensionalizing Cultures: The Hofstede Model in Context, 2001) cultural dimensions has a moderating role in converting Personal Entrepreneurial Attributes into their Intention to Start a Business. To measure these attributes, we applied bounded multidimensional model of social entrepreneurship as proposed by (Weerawardena & Mort, 2006) and applied by (Richter, et al., 2016). The effect of three Entrepreneurial Attributes namely risk taking, innovativeness and pro-activeness along with other demographic variables were tested against entrepreneurial intensions (EI). Their effect was moderated by five cultural dimensions namely Masculinity, Power Distance, Long-Term Orientation, Collectivism, and Uncertainty Avoidance. Data of 272 respondents from Pakistan was collected using close ended questionnaire and was analysed using Confirmatory factor analysis and structured equation modelling by means of path model which specifies various constructs of this study. The results suggested that risk taking and pro-activeness had a positive and significant effect on EI, whereas innovativeness doesn’t seem to effect EI. This imply that risk takers and proactive individuals are more inclined towards entrepreneurship than innovators. With regards to cultural dimensions, Masculinity, Power Distance, and Collectivism seems to negatively affect EI, whereas Long-Term Orientation, and Uncertainty Avoidance seems to effect positively. Interestingly, Collectivism and Masculinity have positive and significant complementarities with innovativeness, whereas Uncertainty Avoidance have negative and significant effect. This means innovativeness does seem to effect EI in collective and masculine culture. This also suggested that innovators would be more inclined in converting their ideas into workable projects in collective decision making and hierarchical cultural settings. Conversely, Uncertainty Avoidance, seem to restrict Entrepreneurial aspirations in innovators. Cultural variable doesn’t seem to have a significant moderation effect with regards to risk taking, except of Long Term Orientation, that have significant negative complementarities. Surprisingly, Masculinity, and Collectivism had and significant negative moderating effect with pro-activeness and EI, whereas Long Term Orientation and Uncertainty Avoidance have a significant positive interaction. This suggested that hierarchical culture deter proactive people in fulfilling their EI, at the same time, encourage innovators. With regards to demographics, male seems to have more EI, whereas the coefficient of education and age found that advanced education and experienced individuals believes in development, increasingly slanted toward entrepreneurship. Frames of mind to completing the expectations are poor in entrepreneurship.

The Impact of National Culture Dimensions on the Adoption of Cross-Border E-Commerce

2020 ◽  
Vol 12 (4) ◽  
pp. 91-112
Author(s):  
Isaac Kofi Mensah ◽  
Guohua Zeng ◽  
Chuanyong Luo
Keyword(s):  
Power Distance ◽  
Uncertainty Avoidance ◽  
Cultural Dimensions ◽  
Chinese Sample ◽  
Cross Border ◽  
Performance Expectancy ◽  
Culture Dimensions ◽  
Effort Expectancy ◽  
The Impact

This study integrated the cultural dimensions such as power distance, collectivism, uncertainty avoidance, masculinity, and long-term orientation into the UTAUT to examine the comparative impact of cultural dimensions on the adoption of cross-border e-commerce between the Chinese and Russian citizens. The data analysis was conducted with SPSS and Smart PLS 3.0. The results indicate that power distance, collectivism, and long-term orientation respectively were significant predictors of performance expectancy and effort expectancy of cross-border e-commerce for both Chinese and Russian citizens. Uncertainty avoidance and masculinity were also found to determine the performance expectancy of cross-border e-commerce. However, while uncertainty avoidance and masculinity were significant determinants of the effort expectancy of cross-border e-commerce in the context of the Russia sample, it was not so for the Chinese sample. In addition, performance expectancy and social influence were positive predictors of the intention to use cross-border e-commerce for both Chinese and Russia samples.

The effect of individual cultural values and phantasy on risky investment intention

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Selim Aren ◽  
Hatice Nayman Hamamci
Keyword(s):  
Cultural Values ◽  
Power Distance ◽  
Uncertainty Avoidance ◽  
Content Type ◽  
Unconscious Processes ◽  
Risky Investment ◽  
Investment Intentions ◽  
The Impact ◽  
The Relationship

PurposeThis study aims to examine the impact of conscious and unconscious processes on risky investment intention. In this framework, the effect of individual cultural values and phantasy on risky investment intentions was investigated. In addition, the mediating role of phantasy in the relationship between individual cultural values and risky investment intentions was also analyzed.Design/methodology/approachData were collected between May 14, 2020 and June 01, 2020, when our graduate students voluntarily shared the online survey link on their social networks. In this way, 1,934 people in total answered the questionnaire. To test the study model, structural equation modeling (SEM) was performed using the AMOS program. In addition, ANOVA and independent sample t-test analyses were conducted using the SPSS program to analyze whether individual cultural values and risky investment intent differ according to demographic variables.FindingsAccording to the analysis results, power distance, collectivism, masculinity and long-term orientation are seen as antecedents of phantasy. While a positive relationship was found between power distance, collectivism and risky investment intention, a negative relationship was found between uncertainty avoidance and risky investment intention. Statistical findings regarding the mediating effect of phantasy on the relationship between individual cultural values and risky investment intentions were also determined. In addition to these, the differences in individual cultural values and risky investment intentions according to age, education level, sex and marital status were investigated. Individuals with the highest uncertainty avoidance level were in the 41–50 age group. Individuals with the highest long-term orientation level were individuals aged 41 and over. Individuals with the lowest risky investment intentions were in the +51 age group. Collectivism and power distance did not differ according to age. There were no differences in the relevant variables according to the level of education. Males have higher levels of risky investment intention, power distance, masculinity and collectivism than females, and married individuals have higher levels of uncertainty avoidance, masculinity and collectivism than singles.Originality/valueThis study is the first to investigate the impact of conscious and unconscious processes on risky investment intentions together. On the other hand, the number of studies empirically investigating the relationship between phantasy and risky investment intention is quite limited, and the authors have also provided the findings for the existence of a relationship between these two variables.

The Effects of Individual and National Cultures in Knowledge Sharing

2016 ◽  
Vol 24 (2) ◽  
pp. 39-56 ◽  
Author(s):  
Yu-Wei Chang ◽  
Ping-Yu Hsu ◽  
Wen-Lung Shiau ◽  
Yun-Shan Cheng
Keyword(s):  
Knowledge Sharing ◽  
Cultural Differences ◽  
Power Distance ◽  
Multinational Companies ◽  
Uncertainty Avoidance ◽  
Cultural Characteristics ◽  
National Cultures ◽  
Organizational Rewards ◽  
The Individual ◽  
The U.S

A major challenge for multinational companies is to motivate employees with different individual cultural characteristics and national cultures to share knowledge. Although comparative studies across different countries have been conducted, little is known about the effects of individual cultural differences in this context. The purpose of this study is to investigate the effects of individual and national cultures in knowledge sharing. The individual cultural characteristics of power distance, individualism/collectivism, and uncertainty avoidance are incorporated into the model as antecedents of knowledge-sharing motivations (organizational rewards, image, and reciprocal benefits). National cultural differences are examined by subjects conducted in the U.S. and China. Results show that power distance is significantly related to reciprocal benefits for the U.S. but not for China. Individualism/collectivism is related to organizational rewards and image for the U.S. but not for China, while individualism/collectivism is significantly related to reciprocal benefits for China but not for the U.S. Uncertainty avoidance is significantly related to reciprocal benefits for the U.S. but not for China. This study provides knowledge-sharing practices and managements for multinational companies attempting to motivate U.S. and Chinese employees to share knowledge.

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