A study of the impact of cultural dimensions on the operational orientation of manufacturing firms

Abstract

The impact of national culture on management practices is well established in the operations management literature. We seek to extend this notion by investigating the linkage between culture and orientation toward lean manufacturing, time horizon, goal clarity, and talent development. Based on a panel of 10,762 firms from 20 countries, we test for the linkage between four GLOBE cultural dimensions and the operational orientation of manufacturing firms. We find empirical support for the fact that cultural dimensions impact the strategic orientation of manufacturing firms. In particular, we find support for the following positive relationships: higher assertiveness with lean manufacturing; future orientation with time horizon; higher uncertainty avoidance with clarity in goals; and performance orientation with developing talent. Additionally, a country's education quality moderates these relationships in three of the four relationships studied. The study's findings have important implications for research and managerial choices across manufacturing firms around the world.