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The salience of ‘culture’s consequences’: the effects of cultural values on top executive commitment to the status quo

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  • Marta A. Geletkanycz

Abstract

While top executives are argued to play a central role in strategic adaptation, evidence suggests that they are not equally open to organizational change. This study extends earlier investigation of the determinants of top executive commitment to the status quo (CSQ) to the international arena, examining the influence of cultural values on executive open‐mindedness toward change. Using data from a survey of top managers in 20 countries, analyses reveal that values of individualism, uncertainty avoidance, power distance, and long‐term orientation are significantly related to executives’ adherence to existing strategy and leadership profiles. Further, while confirming earlier findings that industry tenure is positively related to strategy CSQ, results show that tenure does not significantly affect leadership CSQ once cultural values are controlled. In summary, the findings reveal that culture has an important impact on executive mindsets, as demonstrated by the fact that executives of differing cultural background are not equally open to change in organizational strategy and leadership profiles. Second, the findings suggest that executives’ views of appropriate leadership profiles reflect the imprint of cultural socialization moreso than professional experience. Finally, and more broadly, the study offers empirical support for the view that values figure prominently in shaping executives’ strategic and leadership orientations. © 1997 by John Wiley & Sons, Ltd

Suggested Citation

  • Marta A. Geletkanycz, 1997. "The salience of ‘culture’s consequences’: the effects of cultural values on top executive commitment to the status quo," Strategic Management Journal, Wiley Blackwell, vol. 18(8), pages 615-634, September.
  • Handle: RePEc:bla:stratm:v:18:y:1997:i:8:p:615-634
    DOI: 10.1002/(SICI)1097-0266(199709)18:83.0.CO;2-I
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    1. Yu Wang & Xiaoying Chang & Tienan Wang, 2023. "Government directors as a double‐edged sword for strategic change: Strong resource provision but weak monitoring," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(3), pages 1802-1819, April.
    2. Michael Lubatkin & William S. Schulze & Richard N. Dino, 2003. "Exploring the agency consequences of ownership dispersion among the directors of private family firms," Post-Print hal-02276698, HAL.
    3. Stefan Schmid & Tobias Dauth, 2012. "Internationale Diversität im Top-Management — Eine empirische Analyse der DAX-30-Unternehmen," Schmalenbach Journal of Business Research, Springer, vol. 64(7), pages 772-802, November.
    4. Patrick M. Kreiser & Louis D. Marino & K. Mark Weaver, 2002. "Assessing the Psychometric Properties of the Entrepreneurial Orientation Scale: A Multi-Country Analysis," Entrepreneurship Theory and Practice, , vol. 26(4), pages 71-93, July.
    5. Venkateswaran, Ramya Tarakad & George, Rejie, 2020. "When does culture matter? A multilevel study on the role of situational moderators," Journal of Business Research, Elsevier, vol. 116(C), pages 99-122.
    6. Yan Ling & Michelle Hammond & Li-Qun Wei, 2022. "Ethical leadership and ambidexterity in young firms: examining the CEO-TMT Interface," International Entrepreneurship and Management Journal, Springer, vol. 18(1), pages 25-48, March.
    7. Peter JANSEN & Gabriel Viorel RAITA, 2021. "Macro-Level Determinants of Board Effectiveness in UK and Romanian Listed Companies: A Conceptual Approach," CECCAR Business Review, Body of Expert and Licensed Accountants of Romania (CECCAR), vol. 2(10), pages 60-72, October.
    8. Leonardo M. Klüppel & Lamar Pierce & Jason A. Snyder, 2018. "Perspective—The Deep Historical Roots of Organization and Strategy: Traumatic Shocks, Culture, and Institutions," Organization Science, INFORMS, vol. 29(4), pages 702-721, August.
    9. Ilya R. P. Cuypers & Charmi Patel & Gokhan Ertug & Jiatao Li & Youtha Cuypers, 2022. "Top management teams in international business research: A review and suggestions for future research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(3), pages 481-515, April.
    10. David Ahlstrom & Garry D. Bruton, 2002. "An Institutional Perspective on the Role of Culture in Shaping Strategic Actions by Technology-Focused Entrepreneurial Firms in China," Entrepreneurship Theory and Practice, , vol. 26(4), pages 53-68, July.
    11. Zuo, Ying & Xu, Weidong & Li, Donghui & Fu, Wentao & Lin, Bin, 2022. "Individualism and excess perk consumption: Evidence from China," Research in International Business and Finance, Elsevier, vol. 62(C).
    12. Yuan Li & Xiyuan Li & Qingmin Chen & Ying Xue, 2020. "Sustainable Career Development of Newly Hired Executives—A Dynamic Process Perspective," Sustainability, MDPI, vol. 12(8), pages 1-18, April.
    13. Andrew A. Anabila & Eunyoung Whang, 2014. "An Empirical Description of Billionaires," Accounting and Finance Research, Sciedu Press, vol. 3(2), pages 112-112, May.
    14. Michaela Wrede & Tobias Dauth, 2020. "A temporal perspective on the relationship between top management team internationalization and firms' innovativeness," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(4), pages 542-561, June.
    15. James C. Hayton & Gerard George & Shaker A. Zahra, 2002. "National Culture and Entrepreneurship : A Review of Behavioral Research," Entrepreneurship Theory and Practice, , vol. 26(4), pages 33-52, July.
    16. Henning Behr & Kerstin Fehre, 2019. "CEO succession and the CEO’s commitment to the status quo," Business Research, Springer;German Academic Association for Business Research, vol. 12(2), pages 355-381, December.
    17. Patrick M. Kreiser & Louis D. Marino & Pat Dickson & K. Mark Weaver, 2010. "Cultural Influences on Entrepreneurial Orientation: The Impact of National Culture on Risk Taking and Proactiveness in SMEs," Entrepreneurship Theory and Practice, , vol. 34(5), pages 959-984, September.
    18. Wenwen An & Charles-Clemens Rüling & Xin Zheng & Jianqi Zhang, 2020. "Configurations of effectuation, causation, and bricolage: implications for firm growth paths," Small Business Economics, Springer, vol. 54(3), pages 843-864, March.
    19. Knein, Ernesto & Greven, Andrea & Bendig, David & Brettel, Malte, 2020. "Culture and cross-functional coopetition: The interplay of organizational and national culture," Journal of International Management, Elsevier, vol. 26(2).

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