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Culture and Congruence: The Fit Between Management Practices and national Culture

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  • Karen L Newman

    (Georgetown University)

  • Stanley D Nollen

    (Georgetown University)

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    Abstract

    The financial performance of European and Asian work units of one multinational company is examined as a function of the congruence between management practices and national culture. Using Hofstede's five national culture dimensions and analogous management practices, we find that work unit financial performance is higher when management practices in the work unit are congruent with the national culture.© 1996 JIBS. Journal of International Business Studies (1996) 27, 753–779

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    Bibliographic Info

    Article provided by Palgrave Macmillan in its journal Journal of International Business Studies.

    Volume (Year): 27 (1996)
    Issue (Month): 4 (December)
    Pages: 753-779

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    Handle: RePEc:pal:jintbs:v:27:y:1996:i:4:p:753-779

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    Cited by:
    1. Yu-Shu Peng & Shing-Shiuan Lin, 2009. "National Culture, Economic Development, Population Growth and Environmental Performance: The Mediating Role of Education," Journal of Business Ethics, Springer, vol. 90(2), pages 203-219, December.
    2. Tim Andrews & Nartnalin Chompusri, 2005. "Temporal Dynamics of Crossvergence: Institutionalizing MNC Integration Strategies in Post-Crisis ASEAN," Asia Pacific Journal of Management, Springer, vol. 22(1), pages 5-22, January.
    3. Gomez, Carolina & Werner, Steve, 2004. "The effect of institutional and strategic forces on management style in subsidiaries of U.S. MNCs in Mexico," Journal of Business Research, Elsevier, vol. 57(10), pages 1135-1144, October.
    4. Thomas Hutzschenreuter & Fabian Guenther, 2009. "Complexity as a constraint on firm expansion within and across industries," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 30(6), pages 373-392.
    5. Khilji, Shaista E. & Zeidman, Nurit & Drory, Amos & Tirmizi, Aqeel & Srinivas, E.S., 2010. "Crossvergence of values: An analysis of the use of impression management strategies in India, Israel and Pakistan," International Business Review, Elsevier, vol. 19(4), pages 419-431, August.
    6. Sa'eed. H Aldulaimi Author_Email: sskw20@yahoo.com & Md Saaid Bin Sailan, 2011. "The Influence Of National Culture On Individual Readiness To Change And Consequently Commitment To Organizational Change," International Conference on Management (ICM 2011) Proceeding 2011-076-289, Conference Master Resources.
    7. Paterson, S. L. & Brock, D. M., 2002. "The development of subsidiary-management research: review and theoretical analysis," International Business Review, Elsevier, vol. 11(2), pages 139-163, April.
    8. Ming-Jer Chen, 2002. "Transcending Paradox: The Chinese “Middle Way” Perspective," Asia Pacific Journal of Management, Springer, vol. 19(2), pages 179-199, August.
    9. Qiangbing Chen & Yali Liu & Lu Jiang, 2010. "Culture distance and foreign equity ownership in international joint ventures: Evidence from China," Journal of Chinese Economic and Foreign Trade Studies, Emerald Group Publishing, vol. 3(3), pages 189-203, December.
    10. Yilmaz, Cengiz & Alpkan, Lutfihak & Ergun, Ercan, 2005. "Cultural determinants of customer- and learning-oriented value systems and their joint effects on firm performance," Journal of Business Research, Elsevier, vol. 58(10), pages 1340-1352, October.
    11. Chang, Kiyoung & Noorbakhsh, Abbas, 2009. "Does national culture affect international corporate cash holdings?," Journal of Multinational Financial Management, Elsevier, vol. 19(5), pages 323-342, December.
    12. Polychronakis, Yiannis E. & Syntetos, Aris A., 2007. "`Soft' supplier management related issues: An empirical investigation," International Journal of Production Economics, Elsevier, vol. 106(2), pages 431-449, April.
    13. Reiche, B. Sebastian, 2008. "The configuration of employee retention practices in multinational corporations' foreign subsidiaries," International Business Review, Elsevier, vol. 17(6), pages 676-687, December.
    14. Zeybek, Ali Yavuz & O'Brien, Matthew & Griffith, David A., 2003. "Perceived cultural congruence's influence on employed communication strategies and resultant performance: a transitional economy international joint venture illustration," International Business Review, Elsevier, vol. 12(4), pages 499-521, August.
    15. Jansen, E. Pieter & Merchant, Kenneth A. & Van der Stede, Wim A., 2009. "National differences in incentive compensation practices: The differing roles of financial performance measurement in the United States and the Netherlands," Accounting, Organizations and Society, Elsevier, vol. 34(1), pages 58-84, January.
    16. Susaeta, Lourdes & Pin, Jose R., 2008. "The five phases in the transfer of HR policies and practices within MNCs," IESE Research Papers D/724, IESE Business School.
    17. Harris, Simon & Carr, Chris, 2008. "National cultural values and the purpose of businesses," International Business Review, Elsevier, vol. 17(1), pages 103-117, February.
    18. Youngok Kim & Sidney Gray, 2009. "An assessment of alternative empirical measures of cultural distance: Evidence from the Republic of Korea," Asia Pacific Journal of Management, Springer, vol. 26(1), pages 55-74, March.
    19. Leslie Williams & Stephen McGuire, 2010. "Economic creativity and innovation implementation: the entrepreneurial drivers of growth? Evidence from 63 countries," Small Business Economics, Springer, vol. 34(4), pages 391-412, May.

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