Hostname: page-component-848d4c4894-x5gtn Total loading time: 0 Render date: 2024-06-07T11:48:15.464Z Has data issue: false hasContentIssue false

How Much Does National Culture Constrain Organizational Culture?

Published online by Cambridge University Press:  02 February 2015

Barry Gerhart*
Affiliation:
University of Wisconsin-Madison, USA
Rights & Permissions [Opens in a new window]

Abstract

Core share and HTML view are not available for this content. However, as you have access to this content, a full PDF is available via the ‘Save PDF’ action button.

The assumption of strategy approaches like the resource based view is that, despite environmental constraints, ample room remains for organizations to differentiate on the basis of organizational culture (together with related human resource practices) to achieve sustained competitive advantage. In contrast, other perspectives assume that management practice and organizational culture mirror, or are constrained by, national culture. To the degree that such a constraint exists, within-country variance in culture should be small and between-country variance large. In statistical terms, the first question is: what is the magnitude of the effect size for country? The larger the effect, the more likely it is a constraint. Second, what portion of the country effect size is due to differences in national culture? My review finds that most of the variance in organizational cultures is not explained by country; of the variance that is explained by country, only a minority is due to national culture differences. As such, there may be more room for organizational differentiation than typically recognized. Third, under what circumstances will country and national culture effects be larger or smaller? I present a model suggesting more room for differentiation in countries having greater individual level variance in cultural values and related variables.

Type
Perspectives
Copyright
Copyright © International Association for Chinese Management Research 2009

References

Au, K. Y. 1999. Intra-cultural variation: Evidence and implications for international business. Journal of International Business Studies, 30(4): 799812.CrossRefGoogle Scholar
Bain, J. S. 1959. Industrial organization. New York: Wiley.Google Scholar
Barley, S. R., Meyer, G., & Gash, D. 1988. Cultures of culture: Academics, practitioners, and the pragmatics of normative control. Administrative Science Quarterly, 33(1): 2460.CrossRefGoogle Scholar
Barney, J. B. 1986. Organizational culture: Can it be a source of sustained competitive advantage? Academy of Management Review, 11(3): 656665.CrossRefGoogle Scholar
Barney, J. B. 1991. Firm resources and sustained competitive advantage. Journal of Management, 17(1): 99120.CrossRefGoogle Scholar
Barney, J. B., & Wright, P. M. 1998. On becoming a strategic partner: The role of human resources in gaining competitive advantage. Human Resource Management, 37(1): 3146.3.0.CO;2-W>CrossRefGoogle Scholar
Bartlett, C. A., & Ghoshal, S. 1989. Managing across borders: The transnational solution. Boston: Harvard Business School Press.Google Scholar
Becker, B., & Gerhart, B. 1996. The impact of human resource management on organizational performance: Progress and prospects. Academy of Management Journal, 39(4): 779801.Google Scholar
Bliese, P. D., & Halverson, R. R. 1998. Group size and measures of group-level properties: An examination of eta-squared and ICC values. Journal of Management, 24(2): 157172.CrossRefGoogle Scholar
Bloom, M., & Milkovich, G. T. 1999. A SHRM perspective on international compensation and rewards. In Wright, P. M.. Dyer, L., Boudreau, J. W., & Milkovich, G. T. (Eds.), Research in personnel and human resources management, (Suppl 4): 283303. Stamford, CT: JAI Press.Google Scholar
Cappelli, P., & Crocker-Hefter, A. 1996. Distinctive human resources arc firms’ core competencies. Organizational Dynamics, 24(3): 722.CrossRefGoogle Scholar
Carmeli, A., & Tishler, A. 2004. The relationships between intangible organizational elements and organizational performance. Strategic Management Journal, 25(13): 12571278.CrossRefGoogle Scholar
Chatman, J. A., & Jchn, K. A. 1994. Assessing the relationship between industry characteristics and organizational culture: How different can you be? Academy of Management Journal, 37(3): 522554.CrossRefGoogle Scholar
Cohen, J. 1988. Statistical power analysis for the behavioral sciences (2nd ed.). Hillsdale, NJ: Lawrence Earlbaum Associates.Google Scholar
Cohen, J. 1994. The earth is round (p < 0.05). American Psychologist, 49(12): 9971003.CrossRefGoogle Scholar
Collins, J. 2001. Good to great: Why some companies make the leap . . . and others don't. New York: Harper Business.Google Scholar
Deal, T. E., & Kennedy, A. A. 1982. Corporate cultures: The rites and rituals of corporate life. Reading, MA: Addison-Wesley.Google Scholar
Den Hartog, D. N., & Verburg, R. M. 2004. High performance work systems, organizational culture and perceived organizational effectiveness. Human Resource Management Journal, 14(1): 5578.CrossRefGoogle Scholar
Denison, D. R. 1990. Corporate culture and organizational effectiveness. New York: Wiley.Google Scholar
DiMaggio, P. J., & Powell, W. W. 1983. The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociology Review, 48(2): 147160.CrossRefGoogle Scholar
Dowling, P. J., Festing, M., & Engle, A. D. Sr. 2008. International human resource management (5th ed.). London: Thomson Learning.Google Scholar
Gelfand, M. J., Nishii, L. H., & Raver, J. L. 2006. On the nature and importance of cultural tightness-looseness. Journal of Applied Psychology, 91(6):12251244.CrossRefGoogle ScholarPubMed
Gerhart, B. 2008. National culture, intracultural variability, and attraction-selection-attrition. Working Paper, School of Business, University of Wisconsin-Madison.Google Scholar
Gerhart, B., & Fang, M. 2005. National culture and human resource management: Assumptions and Evidence. International Journal of Human Resource Management, 16(6): 975990.Google Scholar
Hanges, P.J., & Dickson, M. W. 2004. The development and validation of scales measuring societal culture and culturally-shared implicit theories of leadership. In House, R.J., Hangcs, P.J., Javidan, M., Dorfman, P. W., & Gupta, V. (Eds.), Culture, leadership, and organizations: The GLOBE study of 62 cultures: 122151. Thousand Oaks, CA: Sage Publications.Google Scholar
Hannan, M. T., & Freeman, J. 1977. The population ecology of organizations. American Journal of Sociology, 82(5): 929964.CrossRefGoogle Scholar
Heneman, H. G. III, Heneman, R. L., & Judge, T. A. 1997. Staffing organizations (2nd ed.). Chicago: Irwin.Google Scholar
Hofstede, G. 1980. Culture's consequences: International differences in work-related values. Beverly Hills, CA: Sage Publications.Google Scholar
Hofstede, G. 1983. The cultural relativity of organizational practices and theories. Journal of International Business Studies, 14(2): 7589.CrossRefGoogle Scholar
Hofstede, G. 2001. Culture's consequences: Comparing values, behaviors, institutions, and organizations across nations (2nd ed.). Thousand Oaks, CA: Sage Publications.Google Scholar
Hofstede, G., Neuijen, B., Ohayv, D. D., & Sanders, G. 1990. Measuring organizational cultures: A qualitative and quantitative study across twenty cases. Administrative Science Quarterly, 35(2): 286316.CrossRefGoogle Scholar
Hoopes, D. G., Madsen, T. L., & Walker, G. 2003. Guest editors’ introduction to the special issue: Why is there a resource-based view? Toward a theory of competitive heterogeneity. Strategic Management Journal, 24(10): 889902.CrossRefGoogle Scholar
House, R. J., Hanges, P. J., Javidan, M., Dorfman, P. W., & Gupta, V. 2004. Culture, leadership, and organizations: The globe study of 62 societies. Thousand Oaks, CA: Sage Publications.Google Scholar
Javidan, M., House, R. J., Dorfman, P. W., Gupta, V., Hanges, P. J., & de Luque, M. S. 2004. Conclusions and future directions. In House, R.J., Hanges, P.J., Javidan, M., Dorfman, P. W., & Gupta, V. (Eds.), Culture, leadership, and organizations: The GLOBE study of 62 cultures: 723732. Thousand Oaks, CA: Sage Publications.Google Scholar
Johns, G. 2006. The essential impact of context on organizational behavior. Academy of Management Review, 31(2): 386408.CrossRefGoogle Scholar
Kerlinger, F. 1973. Foundations of behavioral research (2nd ed.). New York: Holt, Rinchart and Winston, Inc.Google Scholar
Kirkman, B. L., Lowe, K. B., & Gibson, C. B. 2006. A quarter century of Culture's Consequences: A review of empirical research incorporating Hofstede's cultural values framework. Journal of International Business Studies, 37(3): 285320.CrossRefGoogle Scholar
Kochan, T. A., Katz, H. C., & McKersie, R. B. 1994. The transformation of American industrial relations. New York: Basic Books.Google Scholar
Kostova, T., & Roth, K. 2002. Adoption of organizational practice by subsidiaries of multinational corporations: Institutional and relational effects. Academy of Management Journal, 45(1): 215233.Google Scholar
Kotter, J. P., & Heskett, J. P. 1992. Corporate culture and performance. New York: Free Press.Google Scholar
Krug, B., & Hendrischke, H. 2008. Framing China: Transformation and institutional change through co-evolution. Management and Organization Review, 4(1): 81108.CrossRefGoogle Scholar
Lado, A. A., & Wilson, M. C. 1994. Human resource systems and sustained competitive advantage: A competency-based perspective. Academy of Management Review, 19(4): 699727.CrossRefGoogle Scholar
Lawler, E. E. III. 2003. Treat people right! San Francisco: Jossey-Bass.Google Scholar
Martin, J. 2002. Organizational culture. London: Sage Publications.Google Scholar
Nelson, R., & Gopalan, S. 2003. Do organizational cultures replicate national cultures? Isomorphism, rejection, and reciprocal opposition in the corporate values of three countries. Organization Studies, 24(7): 11151151.CrossRefGoogle Scholar
Oliver, C. 1991. Strategic responses to institutional processes. Academy of Management Review, 16(1): 145179.CrossRefGoogle Scholar
Ostroff, C., Kinicki, A. J., & Clark, M. A. 2002. Substantive and operational issues of response bias across levels of analysis: An example of climate-satisfaction relationships. Journal of Applied Psychology, 87(2): 355368.CrossRefGoogle ScholarPubMed
Oyserman, D., Coon, H. M., & Kemmelmeier, M. 2002. Rethinking individualism and collectivism: Evaluation of theoretical assumptions and meta-analyses. Psychological Bulletin, 128(1): 372.CrossRefGoogle ScholarPubMed
Pelto, P. 1968. The difference between ‘tight’ and ‘loose’ societies. Transaction, 5(1): 3740.Google Scholar
Perlmutter, H. V. 1969. The tortuous evolution of the multinational corporation. Columbia Journal of World Business, 4(1): 918.Google Scholar
Peters, T. J., & Waterman, R. H. 1982. In search of excellence: Lessons from America's best-run companies. New York: Harper & Row. Google Scholar
Porter, M. E. 1980. Competitive strategy. New York: Free Press.Google Scholar
Raudenbush, S. W., & Bryk, A. S. 2002. Hierarchical linear models. Thousand Oaks, CA: Sage Publications.Google Scholar
Rosenzweig, P. M., & Nohria, N. 1994. Influences on human resource management practices in multinational corporations. Journal of International Business Studies, 25(2): 229251.CrossRefGoogle Scholar
Rosnow, R. L., & Rosenthal, R. 1989. Statistical procedures and the justification of knowledge in psychological science. American Psychologist, 44(10): 12761284.CrossRefGoogle Scholar
Schaeffer, B. S., & Riordan, C. M. 2003. A review of cross-cultural methodologies for organizational research: A best-practices approach. Organizational Research Methods, 6(2): 169215.CrossRefGoogle Scholar
Schein, E. H. 1992. Organizational culture and leadership (2nd ed.). San Francisco, CA: Jossey-Bass.Google Scholar
Schmidt, F. L. 1996. Statistical significance testing and cumulative knowledge in psychology: Implications for training of researchers. Psychological Methods, 1(2): 115129.CrossRefGoogle Scholar
Schneider, B. 1987. The people make the place. Personnel Psychology, 40(3): 437453.CrossRefGoogle Scholar
Scott, W. R. 2000. Institutions and organizations. Thousand Oaks, CA: Sage Publications.Google Scholar
Shrout, P. E., & Fleiss, J. L. 1979. Intraclass correlations: Uses in assessing rater reliability. Psychological Bulletin, 86(2): 420428.CrossRefGoogle ScholarPubMed
Triandis, H. C. 1989. The self and social behavior in differing cultural context. Psychological Review, 96(3): 506520.CrossRefGoogle Scholar
Trompenaars, F., & Hampden-Turner, C. 2000. Riding the waves of culture: Understanding cultural diversity in business (2nd ed.). London: Nicholas Breazley.Google Scholar
Tsui, A. S., Nifadkar, S. S., & Ou, A. Y. 2007. Cross-national, Cross-cultural organizational behavior research: Advances, gaps, and recommendations. Journal of Management, 33(3): 426478.CrossRefGoogle Scholar
Tsui, A. S., Wang, H., & Xin, K. R. 2006. Organizational culture in China: An analysis of culture dimensions and culture types. Management and Organization Review, 2(3): 345376.CrossRefGoogle Scholar
Wernerfelt, B. 1984. A resource-based view of the firm. Strategic Management Journal, 5(2): 171180.CrossRefGoogle Scholar