Firm Performance and Employee Downsizing: The Moderating Role of National Culture

2017 ◽  
Vol 18 (2) ◽  
pp. 1-31
Author(s):  
Andre Honoree ◽  
Mario Krenn
Keyword(s):  
Firm Performance ◽  
National Culture ◽  
Power Distance ◽  
Institutional Context ◽  
Uncertainty Avoidance ◽  
Cultural Dimensions ◽  
Future Directions ◽  
Research And Practice ◽  
Moderating Role

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.

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

2013 ◽  
Vol 11 (1) ◽  
Author(s):  
Beatrice A. Dimba ◽  
Robert Rugimbana
Keyword(s):  
Firm Performance ◽  
Power Distance ◽  
Multinational Companies ◽  
Uncertainty Avoidance ◽  
Cultural Dimensions ◽  
Manufacturing Companies ◽  
Cultural Orientations ◽  
The Relationship ◽  
Moderating Role

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.

Examining the effect of functional diversity on organizational team innovation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Gladys Esinu Abiew ◽  
Eugene Okyere-Kwakye ◽  
Florence Yaa Akyia Ellis
Keyword(s):  
Functional Diversity ◽  
Structural Equation ◽  
Power Distance ◽  
Uncertainty Avoidance ◽  
Cultural Dimensions ◽  
Content Type ◽  
Team Innovation ◽  
The Relationship ◽  
Moderating Role

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.

scholarly journals National Culture and Tax Avoidance of Multinational Corporations

2019 ◽  
Vol 11 (24) ◽  
pp. 6946
Author(s):  
Ji Seon Yoo ◽  
Ye Ji Lee
Keyword(s):  
Multinational Corporations ◽  
National Culture ◽  
Power Distance ◽  
Tax Avoidance ◽  
Uncertainty Avoidance ◽  
Cultural Dimensions ◽  
High Power Distance ◽  
Low Uncertainty ◽  
High Uncertainty

This study tests the role of national culture in tax avoidance by multinational corporations (MNCs). Hofstede’s four cultural dimensions are used to measure cultural differences across countries: uncertainty avoidance, individualism, masculinity, and power distance. The empirical results of the study imply that MNCs headquartered in countries with low uncertainty avoidance, low individualism, high masculinity, and low power distance engage in a higher level of tax avoidance than MNCs in countries with high uncertainty avoidance, high individualism, low masculinity, and high power distance. In addition, the cultural features of the parent company generally have a stronger influence on group-level tax avoidance than those of its subsidiaries. This study contributes to the literature by presenting empirical evidence of culture as a determinant of tax avoidance by MNCs.

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.

scholarly journals Authentic Leadership and Employee Voice: Roles of Obligation Perception and Power Distance Orientation

2020 ◽  
Vol 9 (3) ◽  
pp. 25
Author(s):  
Hung-Yi Liao ◽  
Kang-Hwa Shaw
Keyword(s):  
Authentic Leadership ◽  
Power Distance ◽  
Employee Voice ◽  
Future Directions ◽  
Power Distance Orientation ◽  
Mediating Role ◽  
Managerial Implications ◽  
The Relationship ◽  
Moderating Role

Based on social learning theory, this paper investigated the relationship between authentic leadership and employee voice as well as the mediating role of felt obligations for change, and the moderating role of power distance orientation. Using a questionnaire survey, we collected employee data in China, and obtained 183 usable responses to test our hypotheses. The results show that authentic leadership is positively related to employee voice, authentic leadership positively influences felt obligations for change, and felt obligations for change mediates the relationship between authentic leadership and employee voice. Further, power distance orientation moderates the influence of authentic leadership on felt obligations for change. Theoretical implications, managerial implications, and future directions are discussed.

Gender Differences in Hofstede's Cultural Dimensions Among a Kuwaiti Sample

2016 ◽  
Vol 33 (S1) ◽  
pp. S503-S504 ◽  
Author(s):  
A. AlAnezi ◽  
B. Alansari
Keyword(s):  
Gender Differences ◽  
National Culture ◽  
Power Distance ◽  
Uncertainty Avoidance ◽  
Cultural Dimensions ◽  
Cronbach’S Alpha ◽  
Short Term ◽  
Five Dimensions ◽  
Cronbach's Alpha

IntroductionHofstede's model of cultural dimensions has become the most widely accepted and most frequently cited model for cross-cultural research. His cultural dimensions included power distance index (PDI), individualism vs. collectivism (IDV), masculinity vs. femininity (MAS), uncertainty avoidance index (UAI), and long-term vs. short-term orientation (LTO).ObjectiveThe objective of this study is to explore gender related differences in the Hofstede's five dimensions of national culture for work-related values among a sample from Kuwait.MethodsThe participants were 540 first year secondary school Kuwaiti teachers (270 males: mean age = 28.95 ± 2.47; 270 females: mean age = 28.20 ± 2.04). The Arabic version of the Values Survey Module, VSM 08 was administered to participants. Data analysis include independent sample t-test was used to examine gender differences in Hofstede's five dimensions of national culture.ResultsInternal consistency was satisfactory for the Power Distance, Individualism vs. Collectivism, Masculinity vs. Femininity, Uncertainty Avoidance, and Long-term vs. Short-term Orientation subscales respectively (Cronbach's alpha = 0.82, 0.84, 0.90, 0.74, 0.87) for males and (Cronbach's alpha = 0.77, 0.90, 0.83, 0.80, 0.88) for females. The results revealed significant gender differences where the males obtained a higher score than females on individualism (t = 2.95, P < 0.002), and masculinity (t = 2.77, P < 0.005), while females obtained a higher score than males on power distance (t = 4.48, P < 0.000), and long-term orientation (t = 4.13, P < 0.000).ConclusionThese findings suggest that the gender differences exist for cultural dimensions, and provide insight on leadership characteristics.Disclosure of interestThe authors have not supplied their declaration of competing interest.

scholarly journals Culture and profitability: empirical evidence at a European level

2016 ◽  
Vol 13 (2) ◽  
pp. 580-588
Author(s):  
Maria Manuela Martins ◽  
Ilídio Tomás Lopes
Keyword(s):  
National Culture ◽  
Statistical Tests ◽  
Power Distance ◽  
Uncertainty Avoidance ◽  
Cultural Dimensions ◽  
Return On Assets ◽  
National Cultures ◽  
Return On Equity ◽  
Lower Uncertainty

Organizational cultures distinguish different organizations within the same country or countries. When comparing the organizations within the same country differences in national cultures are not relevant but become relevant in comparison between different countries. This paper intends to evidence whether the profitability of companies can be influenced by the national culture. In order to characterize the culture of each country, we used the Hofstede measure of cultural dimensions (1. Power Distance (PDI); 2. Uncertainty Avoidance (UAI); 3. Individualism (IDV); 4. Masculinity (MAS); 5. Long-Term Orientation (LTO); and 6. Indulgence vs Restraint (IND)). Sample was based on the 500 largest European companies rated by the Financial Times 2015. Profitability was measured by the ratios Return on Assets (ROA) and Return on Equity (ROE). Statistical tests were performed to test whether the means of the variables used to measure profitability are statistically equal. The results indicate that companies with higher profitability are from countries with lower Power Distance, lower Uncertainty Avoidance, Long-Term Orientation, and Higher Indulgence

scholarly journals Professional Commitment And Whistleblowing Intention: The Role Of National Culture

2021 ◽  
Vol 11 (1) ◽  
pp. 87-102
Author(s):  
Ni Wayan Rustiarini ◽  
Anik Yuesti ◽  
Ni Putu Shinta Dewi
Keyword(s):  
National Culture ◽  
Power Distance ◽  
Uncertainty Avoidance ◽  
Primary Data ◽  
Survey Method ◽  
Professional Commitment ◽  
Five Dimensions ◽  
Whistleblowing Intention

This study aims to identify the effect of professional commitment on whistleblowing intentions. This study also analyzes the role of Hofstede's five dimensions of national culture as moderating variable, including power distance, collectivism, masculinity, uncertainty avoidance, and long-term orientation. This study used a survey method. The primary data collection was through a questionnaire distributed to 92 auditors in accounting firms in Bali Province. The result shows that professional commitment positively affects whistleblowing intention. The moderating variable's roles are power distance and collectivism's culture weaken professional commitment and whistleblowing intention relationship. Two other cultures, namely masculinity and a long-term orientation, are proven to strengthen the relationship between professional commitment and whistleblowing intention. Contrary, uncertainty avoidance culture has no significant effect. Theoretically, this study confirms the role of the national culture in the auditing context. This result practically adds insight to regulators and accounting firm leaders in formulating regulations regarding the appropriate whistleblowing system for organizations. There are two limitations. First, this study uses a survey method. This method allows for social desirability bias for sensitive variables, such as whistleblowing. This study also uses the national culture popularized by Hofstede about forty years ago. Thus, further research might use other popular models.

scholarly journals NATIONAL CULTURE AND TRANSPARENCY: EVIDENCE FROM ISLAMIC BANKS

2019 ◽  
Vol 10 (1) ◽  
pp. 101-109
Author(s):  
Rochania Ayu Yunanda ◽  
Mohammad Ali Tareq ◽  
Akbariah Binti Mahdzir ◽  
Faried Kurnia Rahman
Keyword(s):  
Cultural Values ◽  
National Culture ◽  
Power Distance ◽  
Uncertainty Avoidance ◽  
Cultural Dimensions ◽  
The Other ◽  
Islamic Banks ◽  
National Cultures ◽  
Business Operations ◽  
Other Hand

The purpose of this paper is to investigate the effects of predominant cultural values on banking disclosure. On one hand, Islamic banks have practiced Islamic principles which are universal for all countries. Islamic banks are expected to provide transparent information especially in terms of social and Shariah(Islamic) compliant information as Islamic banks claim themselves to have social objectives as the prime consideration. Islamic banks also have Shariah supervisory body to ensure that the banking activities and business operations are in line with Islamic requirements. On the other hand, Hofstede‘s cultural dimensions and Gray‘s hypotheses have rendered remarkable contributions in financial and accounting practices among different nations. Examining 45 Islamic banks in 11 Moslem majority countries, this paper focuses on four particular cultural dimensions namely individualism/collectivism, masculinity/femininity, uncertainty avoidance, and power distance and whether these dimensions have an impact on transparency. This study found that two out of four national cultures still have significant effect on the transparency level in Moslem majority countries.

Valuing Sustainability

2018 ◽  
pp. 21-58 ◽  
Author(s):  
Daniela Rojas Morales ◽  
Lars Moratis
Keyword(s):  
National Culture ◽  
Communication Strategies ◽  
Power Distance ◽  
Cultural Dimensions ◽  
The Other ◽  
Green Advertising ◽  
Negative Effect ◽  
Potential Benefits ◽  
Main Effects

Consumers' low awareness and negative attributions remain critical impediments to companies' attempts to reap the potential benefits of CSR. Addressing the gap of how and under which conditions what type of attributions arise and the role of stakeholder factors in CSR communication strategies, the aim of this chapter is to assess to what extent national culture influences the attributions that arise towards green advertising. Preceded by a pre-test, a survey was conducted in Colombia, The Netherlands and USA. With a total of 248 responses, a multiple regression analysis was performed to analyze the data. Results show main effects of national culture on the attribution of negative motives. Specifically, the cultural dimensions power distance and uncertainty avoidance have a negative effect on negative attributions. On the other hand, results indicated that positive attributions are not influenced by national culture. The research stresses the relevance of national culture as a stakeholder-factor, influencing the effectiveness of green advertising.

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