scholarly journals An assessment of the moderating role of employees’ cultural orientations amongst foreign manufacturing multinational companies in Kenya

Author(s):  
Beatrice A. Dimba ◽  
Robert Rugimbana

Orientation: This article investigates the question, of whether culture really matters in implementing international strategic human resource management (SHRM) practices.Research purpose: Specifically, this study sought to investigate the extent to which employee cultural orientations moderate the link between SHRM practices and firm performance in large foreign manufacturing multinational companies in Kenya. Motivation for the study: Large foreign multinational companies have generally applied SHRM practices without adaptation when trying to improve employee performance even though resource based perspectives argue for the consideration of employees’ cultural orientations. Research design, approach and method: SHRM practices were conceptualised as independent variables measured through distinct practices. Organisational performance as a dependent variable was measured using constructs of image, interpersonal relations, and product quality. Cultural dimensions adopted for this study were power distance, uncertainty avoidance, individualism or collectivism, and masculinity or femininity. The above conceptual framework was tested by the use of both quantitative and qualitative techniques with data from fifty (50) large foreign multinational companies operating in Kenya. Main findings: Findings indicated that the relationship between SHRM practices and firm performance depend to a greater extent on employee cultural orientations when power distance is considered. Power distance (PD) refers to the extent of people accepting that power in institutions and organisations when distributed unequally. The greater the PD, the greater the acceptance of this inequality. Practical/managerial implications: The study supported the notion that the relationship between SHRM practices and firm performance is moderated by power distance through motivation but not by the other three bipolar dimensions namely, Uncertainty Avoidance, Masculinity or Femininity and Individualism or Collectivism. Contribution/value-add: This is the first large-scale empirical article that has focused on the moderating role of employees’ cultural orientations in large foreign manufacturing companies operating in Kenya.

2017 ◽  
Vol 18 (2) ◽  
pp. 1-31
Author(s):  
Andre Honoree ◽  
Mario Krenn

A limitation in the downsizing literature is its lack of attention on how firms’ institutional context interacts with firm’s internal drivers of employee downsizing. This study examines the firm performance - employee downsizing relationship in 1,747 firms across 35 countries over three years and demonstrates that while this relationship is similar among firms across countries, its magnitude varies across countries, and that the cultural dimensions of in-group collectivism, power distance, uncertainty avoidance help explain this variance. Implications from these findings and future directions for employee downsizing research and practice are discussed.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Gladys Esinu Abiew ◽  
Eugene Okyere-Kwakye ◽  
Florence Yaa Akyia Ellis

Purpose Underpinned by the information processing theory, this study aims to investigate the relationship between functional diversity and team innovation by examining the moderating role of some selected cultural dimensions (power distance, uncertainty avoidance and masculinity-femininity) in the relationship between functional diversity and innovation. Design/methodology/approach A quantitative research method was used using a structured questionnaire as a tool to collect data from 251 respondents drawn from research institutions in Ghana. Data was analysed using simple regression and hierarchical multiple regression. In addition, a structural equation model was used to conduct confirmatory factor analyses to examine whether the variables in the hypothesized model for the study captured distinct constructs that the variables were designed to measure. Findings The study revealed that functional diversity was positively related to team innovation. The study also found that functionally diverse groups are more innovative when they exhibit low uncertainty avoidance, femininity and low power distance. Practical implications These findings suggest that practices such as team communication, honesty, respect and trust would foster team unity and commitment, which would enable members to share diverse expertise towards the creation and execution of new ideas and improvement of productivity in the country. Originality/value The study examined the relationship between functional diversity and team innovation by examining the moderating role of some selected cultural dimensions (power distance, uncertainty avoidance and masculinity-femininity) in the relationship between functional diversity and innovation.


2021 ◽  
Vol 13 (11) ◽  
pp. 5800
Author(s):  
Serri Faisal ◽  
Kamaal Allil ◽  
Nor Aziati Abdul Hamid ◽  
Nor Hazana Abdullah

The traditional paradigm prioritizes local culture in application design; however, popular applications with persuasive systems design (PSD) like WhatsApp appeal to a global audience beyond local cultural attributes. The purpose of this study is to test the moderating role of Hofstede’s cultural dimensions on PSD and the relationship to loyalty in the context of WhatsApp. By employing an online survey, data were collected from the Netherlands, Germany, KSA, and Malaysia (N = 488). Using regression moderation analyses, the hypotheses were tested. Findings suggest that only two cultural dimensions, namely power distance and individualism, have a moderating role: power distance in Germany, and individualism in both KSA and Malaysia. This implies that managers must consider the possible influence of some cultural dimensions on loyalty. The study contributes to the literature by focusing on smartphone apps in countries with varying cross-cultural dimensions scores and utilizing the user’s perspective instead of the designer’s perspective.


2019 ◽  
Vol 10 (4) ◽  
pp. 164
Author(s):  
Yenny Dwi Handayani ◽  
Ewing Yuvisa Ibrani

This study aims to examine the effect of corporate governance application and audit quality on audit report lag. Special attention is paid to investigate the moderating role of law compliance in the relationships. 180 manufacturing companies are observed during the three years of observation (2013-2015). Data are analyzed using moderated regression analysis (MRA). The results show that corporate governance application and audit quality have no effect on audit report lag. While law compliance moderates the relationship between corporate governance application and audit report lag.


2018 ◽  
Vol 41 (1) ◽  
pp. 46-73 ◽  
Author(s):  
Prodromos Chatzoglou ◽  
Dimitrios Chatzoudes ◽  
Lazaros Sarigiannidis ◽  
Georgios Theriou

Purpose This paper aims to attempt to bring together various organisational aspects that have never been collectively investigated before in the strategic management literature. Its main objective is to examine the relationship between “strategic orientation” and “firm performance”, in the light of two firm-specific factors (“distinct manufacturing capabilities” and “organisational structure”). The proposed research model of the present study is built upon the resource-based view (RBV) of the firm and the organisational aspect of the VRIO framework (the “O” from the VRIO model). Design/methodology/approach The study proposes a newly developed research model that adopts a four-factor approach, while examining a number of direct and indirect effects. The examination of the proposed research model was made with the use of a newly developed structured questionnaire that was distributed on a sample of Greek manufacturing companies. Research hypotheses were tested using the structural equation modelling technique. The present study is explanatory (examines cause and effect relationships), deductive (tests research hypotheses), empirical (collects primary data) and quantitative (analyses quantitative data that were collected using a structured questionnaire). Findings The empirical results suggest the coexistence of three distinct categories of effects on “firm performance”: strategy or “utility” effects, depending on the content of the implemented strategy; firm-specific effects, depending on the content of the organisational resources and capabilities; and organisational effects, depending on the implemented organisational structure. More specifically, the statistical analysis underlines the significant mediating role of “strategic orientation” and the complementary role of “organisational structure”. Finally, empirical results support the argument that “strategy follows structure”. Research limitations/implications The use of self-reported scales constitutes an inherent methodological limitation. Moreover, the present study lacks a longitudinal approach because it provides a static picture of the subject under consideration. Finally, the sample size of 130 manufacturing companies could raise some concerns. Despite that, previous empirical studies of the same field, published in respectable journals, were also based on similar samples. Practical implications When examining the total (direct and indirect) effects on “firm performance”, it seems that the effect of “organisational structure” is, almost, identical to the effect of “distinct manufacturing capabilities”. This implies that “organisational structure” (an imitable capability) has, almost, the same contribution on “firm performance” as the manufacturing capabilities of the organisation (an inimitable capability). Thus, the practical significance of “organisational structure” is being highlighted. Originality/value There has been little empirical research concerning the bundle of firm-specific factors that enhance the impact of strategy on business performance. Under the context of the resource-based view (RBV) of the firm, the present study examines the impact of “organisational structure” on the “strategy-capabilities-performance” relationship, something that has not been thoroughly investigated in the strategic management literature. Also, the present study proposes an alternate measure for capturing the concept of business strategy, the so-called factor of “strategic orientation”. Finally, the study adopts a “reversed view” in the relationship between structure and strategy. More specifically, it postulates that “strategy follows structure” and not the opposite (“structure follows strategy”). Actually, the empirical data supported that (reversed) view, challenging the traditional approach of Chandler (1962) and calling for additional research on that ongoing dispute.


2021 ◽  
Vol 18 ◽  
pp. 1038-1046
Author(s):  
Ahmad Dahiyat ◽  
Ahmad Bawaneh

The study aimed to examine the moderating role of leverage on the relationship between the size of listed Jordanian manufacturing companies and the audit fees over the period 2016-2020. The study extracted the measures of variables from the annual report of manufacturing companies available on the Amman exchange website, it employs debt ratio to measure leverage, while issued capital and total assets were used to measure the size of the company, several statistics methods such as correlation and multiple linear regression and hierarchical regression were used to analyze the data and test the relations. The results show a statistically significant impact of the size of the manufacturing company measured by capital and total assets on audit fees, furthermore, the leverage variable has modified and increase statistically the positive relationship between the size of the company and audit fees.


2021 ◽  
Vol 12 ◽  
Author(s):  
Hansika Kapoor ◽  
Arunima Ticku ◽  
Anirudh Tagat ◽  
Sampada Karandikar

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.


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