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Cross-national differences in cooperative decision-making in mixed-motive business contexts: the mediating effect of vertical and horizontal individualism

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  • Xiao-Ping Chen

    (Department of Management and Organization, School of Business, University of Washington, Seattle, USA)

  • Shu Li

    (Center for Social & Economic Behavior, Institute of Psychology, Chinese Academy of Sciences, Beijing, China)

Abstract

Based on the institutional vs the individual view of culture and the theory of individualism–collectivism in explaining the in-group–outgoup distinction that people make in different cultures, we predicted that Chinese people would make less cooperative decisions than Australians in mixed-motive business situations in which no formal or informal sanction systems were in place. We also predicted that Chinese would be less cooperative with foreigners than with fellow Chinese when they were in a foreign territory, whereas Australians would be equally cooperative with members of both groups. Data from two cross-national experiments provided general support for these predictions. Moreover, the results of Study 2 showed that the nation effects on cooperative decision-making were mediated by individual cultural orientation on vertical and horizontal individualism. The theoretical and practical implications of these findings are discussed in the context of cross-cultural business settings. Journal of International Business Studies (2005) 36, 622–636. doi:10.1057/palgrave.jibs.8400169

Suggested Citation

  • Xiao-Ping Chen & Shu Li, 2005. "Cross-national differences in cooperative decision-making in mixed-motive business contexts: the mediating effect of vertical and horizontal individualism," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(6), pages 622-636, November.
    • Handle: RePEc:pal:jintbs:v:36:y:2005:i:6:p:622-636
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    Cited by:

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    3. Cao, Jiyin & Galinsky, Adam D., 2020. "The Diversity-Uncertainty-Valence (DUV) model of generalized trust development," Organizational Behavior and Human Decision Processes, Elsevier, vol. 161(C), pages 49-64.
    4. 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.
    5. Jebarajakirthy, Charles & Das, Manish, 2020. "How self-construal drives intention for status consumption: A moderated mediated mechanism," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    6. Achim Hecker, 2016. "Cultural Contingencies Of Open Innovation Strategies," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(07), pages 1-27, October.
    7. Francisca Jiménez-Jiménez, 2023. "Heterogeneity, coordination and competition: the distribution of individual preferences in organisations," Economics of Governance, Springer, vol. 24(1), pages 67-107, March.
    8. Peter J. Buckley & Malcolm Chapman & Jeremy Clegg & Hanna Gajewska-De Mattos, 2014. "A Linguistic and Philosophical Analysis of Emic and Etic and their Use in International Business Research," Management International Review, Springer, vol. 54(3), pages 307-324, June.
    9. Paul Lowry & Clay Posey & Tom Roberts & Rebecca Bennett, 2014. "Is Your Banker Leaking Your Personal Information? The Roles of Ethics and Individual-Level Cultural Characteristics in Predicting Organizational Computer Abuse," Journal of Business Ethics, Springer, vol. 121(3), pages 385-401, May.
    10. Joshua Keller & Jeffrey Loewenstein, 2011. "The Cultural Category of Cooperation: A Cultural Consensus Model Analysis for China and the United States," Organization Science, INFORMS, vol. 22(2), pages 299-319, April.
    11. Mannucci, Pier Vittorio & Shalley, Christina E., 2022. "Embracing multicultural tensions: How team members’ multicultural paradox mindsets foster team information elaboration and creativity," Organizational Behavior and Human Decision Processes, Elsevier, vol. 173(C).
    12. Gu, Yuandong & Zhang, Hong & Zhou, Wenli & Zhong, Weiguo, 2019. "Regional culture, top executive values, and corporate donation behaviors," Technological Forecasting and Social Change, Elsevier, vol. 140(C), pages 1-13.
    13. Amanda Bullough & Dina Abdelzaher, 2013. "Global Research on Women¡¯s Entrepreneurship: An Overview of Available Data Sources & Limitations," Business and Management Research, Business and Management Research, Sciedu Press, vol. 2(3), pages 42-59, September.
    14. Abdel-Rahim, Heba Y. & Lorenz, Melanie P. & Zaher, Angie Abdel, 2022. "How do cultural difference, cultural exposure, and CQ affect interpretations of trust from contract choices? Evidence from dyadic cross-country experiments," Accounting, Organizations and Society, Elsevier, vol. 96(C).
    15. Schøtt, Thomas & Jensen, Kent Wickstrøm, 2016. "Firms’ innovation benefiting from networking and institutional support: A global analysis of national and firm effects," Research Policy, Elsevier, vol. 45(6), pages 1233-1246.
    16. Rebecca LeFebvre & Volker Franke, 2013. "Culture Matters: Individualism vs. Collectivism in Conflict Decision-Making," Societies, MDPI, vol. 3(1), pages 1-19, March.
    17. Tianjiao Qiu, 2018. "Influence Of Cultural Practices On Social Support Of Female Entrepreneurs' Startups," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 23(01), pages 1-21, March.
    18. Zixiang Ma & Lirong Long & Yong Zhang & Junwei Zhang & Catherine K. Lam, 2017. "Why do high-performance human resource practices matter for team creativity? The mediating role of collective efficacy and knowledge sharing," Asia Pacific Journal of Management, Springer, vol. 34(3), pages 565-586, September.
    19. Cleveland, Mark & Bartikowski, Boris, 2018. "Cultural and identity antecedents of market mavenism: Comparing Chinese at home and abroad," Journal of Business Research, Elsevier, vol. 82(C), pages 354-363.
    20. Lee, Peter K.C. & To, W.M. & Yu, Billy T.W., 2013. "Team attributes and performance of operational service teams: An empirical taxonomy development," International Journal of Production Economics, Elsevier, vol. 142(1), pages 51-60.

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