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GLOBE practices and values: A case of diminishing marginal utility?

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  • Paul Brewer

    (UQ Business School, University of Queensland, Brisbane, Australia)

  • Sunil Venaik

    (UQ Business School, University of Queensland, Brisbane, Australia)

Abstract

The GLOBE study of national cultures identified nine dimensions of culture. These nine dimensions were measured in the form of societal practices (as things are) and societal values (as things should be). The correlations between practices and values for societies, surprisingly, were found to be significantly negative for seven dimensions. Apparently, people's values are contrary to their practices. A note, which appeared in a recent issue of this journal, proposes that these anomalous correlations result from diminishing marginal utility. The note argues that marginal utility theory applies to cultural dimensions, and that the GLOBE values measure societies’ marginal preferences for most of the dimensions, rather than total preference weights. Through close analysis of the questionnaire items used by the GLOBE team, we show that this is not the case. We demonstrate that the GLOBE questions, as asked, do not elicit marginal preferences. In fact they elicit values, as claimed by GLOBE, but recognizing that values may well be shaped, in part, by existing practices. We call for further study into the GLOBE scores, as it is likely that different explanations apply to practices/values relationships across different dimensions.

Suggested Citation

  • Paul Brewer & Sunil Venaik, 2010. "GLOBE practices and values: A case of diminishing marginal utility?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(8), pages 1316-1324, October.
  • Handle: RePEc:pal:jintbs:v:41:y:2010:i:8:p:1316-1324
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    2. Masud Chand & Rosalie Tung, 2014. "Bicultural identity and economic engagement: An exploratory study of the Indian diaspora in North America," Asia Pacific Journal of Management, Springer, vol. 31(3), pages 763-788, September.
    3. Thomas Rockstuhl & Dongyuan Wu & James H. Dulebohn & Chenwei Liao & Julia E. Hoch, 2023. "Cultural congruence or compensation? A meta-analytic test of transformational and transactional leadership effects across cultures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(3), pages 476-504, April.
    4. Stathopoulou, Anastasia & Balabanis, George, 2019. "The effect of cultural value orientation on consumers' perceptions of luxury value and proclivity for luxury consumption," Journal of Business Research, Elsevier, vol. 102(C), pages 298-312.
    5. Miska, Christof & Szőcs, Ilona & Schiffinger, Michael, 2018. "Culture’s effects on corporate sustainability practices: A multi-domain and multi-level view," Journal of World Business, Elsevier, vol. 53(2), pages 263-279.
    6. Hauff, Sven & Richter, Nicole Franziska & Tressin, Tabea, 2015. "Situational job characteristics and job satisfaction: The moderating role of national culture," International Business Review, Elsevier, vol. 24(4), pages 710-723.
    7. Bruyaka, Olga & Prange, Christiane, 2020. "International cultural ambidexterity: Balancing tensions of foreign market entry into distant and proximate cultures," Journal of Business Research, Elsevier, vol. 118(C), pages 491-506.
    8. Mackey, Jeremy D., 2022. "The effect of cultural values on the strength of the relationship between interpersonal and organizational workplace deviance," Journal of Business Research, Elsevier, vol. 149(C), pages 760-771.
    9. Calza, Francesco & Cannavale, Chiara & Zohoorian Nadali, Iman, 2020. "How do cultural values influence entrepreneurial behavior of nations? A behavioral reasoning approach," International Business Review, Elsevier, vol. 29(5).
    10. Johan Graafland, 2020. "When Does Economic Freedom Promote Well Being? On the Moderating Role of Long-Term Orientation," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 149(1), pages 127-153, May.
    11. Diana M. Hechavarría & Steven A. Brieger, 2022. "Practice rather than preach: cultural practices and female social entrepreneurship," Small Business Economics, Springer, vol. 58(2), pages 1131-1151, February.
    12. Chao C. Chen & Joseph P. Gaspar & Ray Friedman & William Newburry & Michael C. Nippa & Katherine Xin & Ronaldo Parente, 2017. "Paradoxical Relationships Between Cultural Norms of Particularism and Attitudes Toward Relational Favoritism: A Cultural Reflectivity Perspective," Journal of Business Ethics, Springer, vol. 145(1), pages 63-79, September.
    13. Aïssaoui, Rachida & Fabian, Frances, 2015. "The French Paradox: Implications for Variations in Global Convergence," Journal of International Management, Elsevier, vol. 21(1), pages 31-48.
    14. Wijayana, Singgih & Gray, Sidney J., 2018. "Capital market consequences of cultural influences on earnings: The case of cross-listed firms in the U.S. stock market," International Review of Financial Analysis, Elsevier, vol. 57(C), pages 134-147.
    15. Martin Hoegl & K. Praveen Parboteeah & Miriam Muethel, 2012. "Cross-National Differences in Managers’ Creativity Promoting Values," Management International Review, Springer, vol. 52(4), pages 565-595, August.
    16. Alvino, Letizia & Constantinides, Efthymios & Franco, Massimo, 2018. "Towards a better understanding of consumer behavior : Marginal utility as a parameter in neuromarketing research," Other publications TiSEM b3e61951-9032-4cb4-b075-1, Tilburg University, School of Economics and Management.
    17. Barreto, Tais S. & Lanivich, Stephen E. & Cox, Kevin C., 2022. "Temporal orientation as a robust predictor of innovation," Journal of Business Research, Elsevier, vol. 138(C), pages 287-300.
    18. Tang, Ryan W. & Buckley, Peter J., 2020. "Host country risk and foreign ownership strategy: Meta-analysis and theory on the moderating role of home country institutions," International Business Review, Elsevier, vol. 29(4).
    19. Letizia Alvino & Efthymios Constantinides & Massimo Franco, 2018. "Towards a Better Understanding of Consumer Behavior: Marginal Utility as a Parameter in Neuromarketing Research," International Journal of Marketing Studies, Canadian Center of Science and Education, vol. 10(1), pages 90-106, March.
    20. Zheng, Weimin & Liao, Zhixue & Qin, Jing, 2017. "Using a four-step heuristic algorithm to design personalized day tour route within a tourist attraction," Tourism Management, Elsevier, vol. 62(C), pages 335-349.
    21. Cline, Brandon N. & Williamson, Claudia R., 2017. "Individualism, democracy, and contract enforcement," Journal of Corporate Finance, Elsevier, vol. 46(C), pages 284-306.
    22. Sunil Venaik & Paul Brewer, 2019. "Looking beyond national differences: Cultural consensus between Confucian and Anglo societies," Australian Journal of Management, Australian School of Business, vol. 44(3), pages 388-406, August.
    23. Venaik, Sunil & Brewer, Paul, 2015. "The common threads of national cultures," Australasian marketing journal, Elsevier, vol. 23(1), pages 75-85.
    24. Sidney J. Gray & Tony Kang & Zhiwei Lin & Qingliang Tang, 2015. "Earnings Management in Europe Post IFRS: Do Cultural Influences Persist?," Management International Review, Springer, vol. 55(6), pages 827-856, December.

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