IDEAS home Printed from https://ideas.repec.org/a/eee/worbus/v46y2011i2p177-184.html
   My bibliography  Save this article

A multi-level model of global decision-making: Developing a composite global frame-of-reference

Author

Listed:
  • Harvey, Michael
  • Griffith, David
  • Kiessling, Tim
  • Moeller, Miriam

Abstract

As organizations globalize their operations, managers are finding that making decisions in a global context is more complex. This research develops a multi-level model that examines the influence of group, organizational and society points of reference on managerial decision-making. Reference Point Theory (RPT) is employed as a foundation for a multi-level global decision-making process. The basic premise of RPT is that global managers need to match global environmental conditions with certain reference points. Yet the more dynamic the environment, the greater the risk associated with misinterpreting the appropriate reference points for making global decisions.

Suggested Citation

  • Harvey, Michael & Griffith, David & Kiessling, Tim & Moeller, Miriam, 2011. "A multi-level model of global decision-making: Developing a composite global frame-of-reference," Journal of World Business, Elsevier, vol. 46(2), pages 177-184, April.
  • Handle: RePEc:eee:worbus:v:46:y:2011:i:2:p:177-184
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1090951610000210
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Oded Shenkar, 2001. "Cultural Distance Revisited: Towards a More Rigorous Conceptualization and Measurement of Cultural Differences," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 32(3), pages 519-535, September.
    2. Roth, Kendall & Nigh, Douglas, 1992. "The effectiveness of headquarters-subsidiary relationships: The role of coordination, control, and conflict," Journal of Business Research, Elsevier, vol. 25(4), pages 277-301, December.
    3. W. W. Rostow, 1959. "The Stages Of Economic Growth," Economic History Review, Economic History Society, vol. 12(1), pages 1-16, August.
    4. Griffith, David A. & Ryans, John K., 1997. "Organizing global communications to minimize private spill-over damage to brand equity," Journal of World Business, Elsevier, vol. 32(3), pages 189-202, October.
    5. Michèle Cohen & Johanna Etner & Meglena Jeleva, 2008. "Dynamic Decision Making when Risk Perception Depends on Past Experience," Theory and Decision, Springer, vol. 64(2), pages 173-192, March.
    6. Astrid Hopfensitz & Frans Winden, 2008. "Dynamic Choice, Independence and Emotions," Theory and Decision, Springer, vol. 64(2), pages 249-300, March.
    7. Williamson, Oliver E, 1993. "Calculativeness, Trust, and Economic Organization," Journal of Law and Economics, University of Chicago Press, vol. 36(1), pages 453-486, April.
    8. Goncalo, Jack A. & Staw, Barry M., 2006. "Individualism-collectivism and group creativity," Organizational Behavior and Human Decision Processes, Elsevier, vol. 100(1), pages 96-109, May.
    9. Ayres, Robert U & Kneese, Allen V, 1969. "Production , Consumption, and Externalities," American Economic Review, American Economic Association, vol. 59(3), pages 282-297, June.
    10. B R Baliga & Alfred M Jaeger, 1984. "Multinational Corporations: Control Systems and Delegation Issues," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 15(2), pages 25-40, June.
    11. Phillip D White, 1979. "Attitudes of U.S. Purchasing Managers Toward Industrial Products Manufactured in Selected Western European Nations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 10(1), pages 81-90, March.
    12. John D. Sterman, 1989. "Modeling Managerial Behavior: Misperceptions of Feedback in a Dynamic Decision Making Experiment," Management Science, INFORMS, vol. 35(3), pages 321-339, March.
    13. William G. Ouchi, 1979. "A Conceptual Framework for the Design of Organizational Control Mechanisms," Management Science, INFORMS, vol. 25(9), pages 833-848, September.
    14. John M Hannon & Ing-Chung Huang & Bihi-Shiaw Jaw, 1995. "International Human Resource Strategy and Its Determinants: The Case of Subsidiaries in Taiwan," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 26(3), pages 531-554, September.
    15. Kathleen M. Eisenhardt, 1985. "Control: Organizational and Economic Approaches," Management Science, INFORMS, vol. 31(2), pages 134-149, February.
    16. Paulus, Paul B. & Yang, Huei-Chuan, 2000. "Idea Generation in Groups: A Basis for Creativity in Organizations," Organizational Behavior and Human Decision Processes, Elsevier, vol. 82(1), pages 76-87, May.
    17. Lages, Luis Filipe & Silva, Graça & Styles, Chris & Pereira, Zulema Lopes, 2009. "The NEP Scale: A measure of network export performance," International Business Review, Elsevier, vol. 18(4), pages 344-356, August.
    18. Kahneman, Daniel & Tversky, Amos, 1979. "Prospect Theory: An Analysis of Decision under Risk," Econometrica, Econometric Society, vol. 47(2), pages 263-291, March.
    19. Nitin Nohria & Sumantra Ghoshal, 1994. "Differentiated fit and shared values: Alternatives for managing headquarters‐subsidiary relations," Strategic Management Journal, Wiley Blackwell, vol. 15(6), pages 491-502, July.
    20. Griffith, David A. & Harvey, Michael G., 2004. "The influence of individual and firm level social capital of marketing managers in a firm's global network," Journal of World Business, Elsevier, vol. 39(3), pages 244-254, August.
    21. Laszlo Tihanyi & David A Griffith & Craig J Russell, 2005. "The effect of cultural distance on entry mode choice, international diversification, and MNE performance: a meta-analysis," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(3), pages 270-283, May.
    22. Henderson, Vernon, 1997. "Externalities and Industrial Development," Journal of Urban Economics, Elsevier, vol. 42(3), pages 449-470, November.
    23. Harvey, Michael & Novicevic, Milorad M., 2002. "The hypercompetitive global marketplace: the importance of intuition and creativity in expatriate managers," Journal of World Business, Elsevier, vol. 37(2), pages 127-138, July.
    24. Lisa Hope Pelled, 1996. "Demographic Diversity, Conflict, and Work Group Outcomes: An Intervening Process Theory," Organization Science, INFORMS, vol. 7(6), pages 615-631, December.
    25. Bruce C. Greenwald & Joseph E. Stiglitz, 1986. "Externalities in Economies with Imperfect Information and Incomplete Markets," The Quarterly Journal of Economics, Oxford University Press, vol. 101(2), pages 229-264.
    26. Tversky, Amos & Kahneman, Daniel, 1986. "Rational Choice and the Framing of Decisions," The Journal of Business, University of Chicago Press, vol. 59(4), pages 251-278, October.
    27. Sterman, John D., 1989. "Misperceptions of feedback in dynamic decision making," Organizational Behavior and Human Decision Processes, Elsevier, vol. 43(3), pages 301-335, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Guercini, Simone & Milanesi, Matilde, 2020. "Heuristics in international business: A systematic literature review and directions for future research," Journal of International Management, Elsevier, vol. 26(4).
    2. Kiessling, Timothy & Maley, Jane Frances & Moeller, Miriam & Dabić, Marina, 2023. "Managing global knowledge transfer: Inpatriate manager embeddedness and firm innovation," International Business Review, Elsevier, vol. 32(2).
    3. Chipoong Kim & Chul Chung & Chris Brewster, 2019. "Beyond Nationality: International Experience as a Key Dimension for Subsidiary Staffing Choices in MNEs," John H Dunning Centre for International Business Discussion Papers jhd-dp2019-03, Henley Business School, University of Reading.
    4. Samuel Adomako & Kwabena Frimpong & Joseph Amankwah-Amoah & Francis Donbesuur & Robert A. Opoku, 2021. "Strategic Decision Speed and International Performance: The Roles of Competitive Intensity, Resource Flexibility, and Structural Organicity," Management International Review, Springer, vol. 61(1), pages 27-55, March.
    5. Torben Schubert & Elisabeth Baier & Christian Rammer, 2018. "Firm capabilities, technological dynamism and the internationalisation of innovation: A behavioural approach," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(1), pages 70-95, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alexandra Rausch & Alexander Brauneis, 2015. "It’s about how the task is set: the inclusion–exclusion effect and accountability in preprocessing management information," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 23(2), pages 313-344, June.
    2. Mei, Maggie Qiuzhu & Wang, Le & Yan, Jie, 2023. "Maintaining product quality consistency when offshoring to emerging markets: The role of subsidiary control," Journal of International Management, Elsevier, vol. 29(1).
    3. Williams, Christopher & van Triest, Sander, 2009. "The impact of corporate and national cultures on decentralization in multinational corporations," International Business Review, Elsevier, vol. 18(2), pages 156-167, April.
    4. Kawai, Norifumi & Strange, Roger, 2014. "Subsidiary autonomy and performance in Japanese multinationals in Europe," International Business Review, Elsevier, vol. 23(3), pages 504-515.
    5. Emma Stendahl & Svante Schriber & Esther Tippmann, 2021. "Control changes in multinational corporations: Adjusting control approaches in practice," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 52(3), pages 409-431, April.
    6. Lukas Isenberg & Susanne Kreiter & Roland Helm & Christian Schmitz, 2022. "Marketing control in international headquarters-subsidiary working relationships of industrial goods firms: the role of environmental context," Journal of Business Economics, Springer, vol. 92(6), pages 1035-1064, August.
    7. Shi, Wei & Tang, Yinuo, 2015. "Cultural similarity as in-group favoritism: The impact of religious and ethnic similarities on alliance formation and announcement returns," Journal of Corporate Finance, Elsevier, vol. 34(C), pages 32-46.
    8. Del Bosco, Barbara & Cristina Bettinelli, 2020. "How Do Family SMEs Control Their Investments Abroad? The Role of Distance and Family Control," Management International Review, Springer, vol. 60(1), pages 1-35, February.
    9. Christian Jung-Gehling & Erik Strauss, 2018. "A Contemporary Concept of Organizational Control: Its Dependence on Shared Values and Impact on Motivation," Schmalenbach Business Review, Springer;Schmalenbach-Gesellschaft, vol. 70(4), pages 341-374, November.
    10. Ashok Chakravarti, 2012. "Institutions, Economic Performance and the Visible Hand," Books, Edward Elgar Publishing, number 14751.
    11. Lim, Jongha & Makhija, Anil K. & Shenkar, Oded, 2016. "The asymmetric relationship between national cultural distance and target premiums in cross-border M&A," Journal of Corporate Finance, Elsevier, vol. 41(C), pages 542-571.
    12. Pingle, Mark, 1997. "Submitting to authority: Its effect on decision-making," Journal of Economic Psychology, Elsevier, vol. 18(1), pages 45-68, February.
    13. Rachel Croson & Nicolas Treich, 2014. "Behavioral Environmental Economics: Promises and Challenges," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 58(3), pages 335-351, July.
    14. K. Skylar Powell, 2017. "Understanding ‘Misfits’: Aspirations and Systematic Deviations from Firm-Specific Optimal Multinationality," Management International Review, Springer, vol. 57(4), pages 529-544, August.
    15. Peter Otto & Martin Simon, 2008. "Dynamic perspectives on social characteristics and sustainability in online community networks," System Dynamics Review, System Dynamics Society, vol. 24(3), pages 321-347, September.
    16. Hardcopf, Rick & Gonçalves, Paulo & Linderman, Kevin & Bendoly, Elliot, 2017. "Short-term bias and strategic misalignment in operational solutions: Perceptions, tendencies, and traps," European Journal of Operational Research, Elsevier, vol. 258(3), pages 1004-1021.
    17. Jetta Frost & Rick Vogel & Khaled Bagban, 2016. "Managing Interdependence in Multi-business Organizations," Schmalenbach Business Review, Springer;Schmalenbach-Gesellschaft, vol. 17(2), pages 225-260, August.
    18. Aharoni, Yair & Tihanyi, Laszlo & Connelly, Brian L., 2011. "Managerial decision-making in international business: A forty-five-year retrospective," Journal of World Business, Elsevier, vol. 46(2), pages 135-142, April.
    19. Lane, David C. & Rouwette, Etiënne A.J.A., 2023. "Towards a behavioural system dynamics: Exploring its scope and delineating its promise," European Journal of Operational Research, Elsevier, vol. 306(2), pages 777-794.
    20. Đula, Ivan & Größler, Andreas, 2021. "Inequity aversion in dynamically complex supply chains," European Journal of Operational Research, Elsevier, vol. 291(1), pages 309-322.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:worbus:v:46:y:2011:i:2:p:177-184. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/620401/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.