Cultural Effects on Employee Loyalty in Japan and The U. S.: Individual- or Organization-Level? An Analysis of Plant and Employee Survey Data from the 80â€™s
AbstractThis paper uses 1980â€™s survey data on large samples of American and Japanese factories and their employees to examine how organization (factory) cultures then differed between Japan and the U. S. and how they affected employee loyalty â€“ intention to leave or stay. Central to the analysis is the idea, taken from Blauâ€™s seminal 1962 paper, that cultural effects may operate at the individual-level through the values, beliefs, and norms employees accept and â€œinternalizeâ€ but also at the group- (including organization-) level through the mechanism of social pressure aimed at inducing conformity. Following Benedictâ€™s classic attribution of a â€œshameâ€ culture to Japan and â€œguiltâ€ culture to the U. S., we predict and find that cultural dimensions pertaining to company paternalism/familism and group work shape employee loyalty chiefly at the organization-level in Japan and chiefly at the individual-level in the U. S. This conclusion is qualified, however, by the finding that in both countries the â€œstrengthâ€ (within-plant variance) of the culture conditions the size of the cultural effects. They are larger when the culture is stronger. Apart from question of the level at which cultural effects operate, we find, consistent with most expectations, that Japanese employees are more loyal (that is, less inclined to quit) in the presence of organization cultures favoring paternalism/familism, groupism, and vertical cohesion (close/frequent supervision). The reverse is in general true of the American employees.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Institute of Industrial Relations, UC Berkeley in its series Institute for Research on Labor and Employment, Working Paper Series with number qt8sc9k91b.
Date of creation: 04 Jan 2012
Date of revision:
Business; Employee Loyalty; Japan; United States;
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Tyler J. VanderWeele, 2011. "Sensitivity Analysis for Contagion Effects in Social Networks," Sociological Methods & Research, , vol. 40(2), pages 240-255, May.
- Quigley, John M. & Raphael, Steven, 2008. "Neighborhoods, Economic Self-Sufficiency, and the MTO Program," Berkeley Program on Housing and Urban Policy, Working Paper Series qt1nd2t0pw, Berkeley Program on Housing and Urban Policy.
- repec:att:wimass:9127 is not listed on IDEAS
- Eric A. Hanushek & John F. Kain & Jacob M. Markman & Steven G. Rivkin, 2001.
"Does Peer Ability Affect Student Achievement?,"
NBER Working Papers
8502, National Bureau of Economic Research, Inc.
- Manski, Charles F, 1993.
"Identification of Endogenous Social Effects: The Reflection Problem,"
Review of Economic Studies,
Wiley Blackwell, vol. 60(3), pages 531-42, July.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lisa Schiff).
If references are entirely missing, you can add them using this form.