Individualistic Countries Research Articles

Collectivism in the labor market: Evidence from second generation immigrants in the United States

This study investigates the role of collectivism on labor market outcomes in an individualist country. We explore collectivism as an intergenerationally transmitted cultural value and analyze its explanatory power for the economic outcome of 21,000 male homogamous second generation immigrants in the US. Our collectivism proxy is derived from the country of ancestry’s historical disease environment because collectivistic values have been particularly advantageous in countries with a greater prevalence of disease-causing pathogens. Employing this new collectivism proxy that identifies collectivism more precisely than previously used cultural proxies, we find that higher scores of collectivism are associated with higher labor force participation and income earned in the US. The results on income are channeled through the number of hours worked and self-selection into jobs that require collectivistic traits. By analyzing the labor market performance of second generation immigrants, we are the first to show an occupational selection along cultural skills implying that second generation immigrants sort into occupations that demand skills on which they have a “cultural comparative advantage”.

Cultural contexts of individualism vs. collectivism: Exploring the relationships between family bonding, supervision and deviance

The primary focus of this paper is to test the cross-national generalizability of the relationship between parental attachment and delinquency. Countries were divided on individualistic and collectivistic dimensions. Individualistic countries emphasize the degree to which individuals are supposed to look after themselves whereas collectivist counties emphasize group integration, usually around the family, and the achievement of group over individual goals. Average individual-level associations between parental attachment and crime were examined across 26 nations in an international dataset of delinquency and victimization of 12–15-year-old students in grades 7–9. Low levels of parental attachment and parental supervision were found to be more strongly related to deviance in countries with individualistic as opposed to collectivist cultural orientations. Alternative explanations for this relationship are explored.

Cultural Values Moderate the Impact of Relative Deprivation

Relative deprivation (RD) is the judgment that one or one’s ingroup is worse off compared with some relevant standard coupled with feelings of dissatisfaction, anger, and resentment. RD predicts a wide range of outcomes, but it is unclear whether this relationship is moderated by national cultural differences. Therefore, in the first study, we used national assessments of individual-collectivism and power distance to code 303 effect sizes from 31 different countries with 200,578 participants. RD predicted outcomes ranging from life satisfaction to collective action more strongly within individualistic nations. A second survey of 6,112 undergraduate university students from 28 different countries confirmed the predictive value of RD. Again, the relationship between individual RD and different outcomes was stronger for students who lived in more individualistic countries. Group-based RD also predicted political trust more strongly for students who lived in countries marked by lower power distance. RD effects, although consistent predictors, are culturally bounded. In particular, RD is more likely to motivate reactions within individualistic countries that emphasize individual agency and achievement as a source of self-worth.

Biased, Therefore Unhappy: Disentangling the Collectivism-Happiness Relationship Globally

A relationship between individualism and happiness has been observed in many studies, with collectivist cultures having lower indices of happiness. It is often argued that this effect arises because people in individualist countries have greater independence and more freedom to pursue personal goals. It appears, however, that the association is much more complex than this as many collectivist countries suffer from more basic problems, such as social conflicts, discrimination, and prejudice. We hypothesized that global differences in happiness could be the result of ingroup bias and its consequences, rather than of collectivism itself. To test our hypotheses, we applied a country-level design, where a country is considered a unit of analysis. We found that individualism predicted various aspects of a country’s aggregated level of happiness, but was only a marginal predictor of happiness when ingroup favoritism and group-focused enmity were controlled for. We discuss the implications of these findings from evolutionary and social psychological perspectives.

Culture and Stock Price Reaction to Private Information

Abstract This paper examines the impact of culture on stock price informativeness in a sample of firms from 23 developed stock markets. We find that the information content of private information in stock prices is higher in more individualistic countries and in low uncertainty-avoiding countries. Moreover, financial openness stimulates the incorporation of private information into individualistic countries and in low uncertainty-avoiding countries.

Is grit relevant to well-being and strengths? Evidence across the globe for separating perseverance of effort and consistency of interests.

Researchers conceptualize grit as the combination of two facets: perseverance of effort and consistency of interests toward long-term goals. We tested the reliability of grit facet scores across the globe and examined how differently each grit facet related to well-being and personality strengths. An international sample of 7,617 participants from six of the seven continents (excluding Antarctica) completed an online survey. Confirmatory factor analyses and omega reliability coefficients indicated that the 12 items from the original Grit Scale were multidimensional and reliably measured perseverance of effort and consistency of interests. Concurrent validity analyses showed that perseverance of effort was moderately to strongly related to subjective well-being, beliefs about well-being, and personality strengths, whereas consistency of interests had weak or negative correlations with these outcomes. The stronger relations with perseverance of effort were replicated across seven regions of the world. The presence of overall grit was supported in individualistic countries, but not collectivistic countries (i.e., those in Latin America and Asia). We discuss the multidimensionality of grit, including a conceptual understanding of overall grit and how it may differ across cultures. We suggest well-being and strengths researchers study grit facets separately due to their differential validity.

The State of Augmented Reality Advertising Around The Globe: A Multi-Cultural Content Analysis

ABSTRACTAs a new form of advertising, augmented reality (AR) advertising offers a unique opportunity to study how new technology-facilitated ad campaigns are constructed across cultures. This research analyzes the content of 117 AR ad campaign videos uploaded on YouTube, and reveals the prevalent characteristics of AR campaigns. We compared videos from individualistic countries with those from collectivistic countries. Results suggest that AR ad campaigns from more individualistic cultures tend to include product information and enable a user to control the virtual AR content, whereas AR ad campaigns from more collectivistic cultures tend to allow a user to become part of the virtual AR content without manipulating it. In closing, we discuss managerial implications for marketers and advertisers as well as opportunities for future research.

Judicial independence in the EU: a puzzle

Based on data from the EU Justice Scoreboard, we identify a puzzle: National levels of judicial independence (as perceived by the citizens of EU member states) are negatively associated with the presence of formal legislation usually considered as conducive to judicial independence. We try to resolve this puzzle based on political economy explanations and specificities of legal systems, but to no avail. We then ask whether cultural traits can help to put together the puzzle. And indeed, countries with high levels of generalized trust (and to a lesser extent individualistic countries) exhibit increased levels of de facto judicial independence and, at the same time, reduced levels of de jure judicial independence. The combination of these two effects can explain why judicial reforms that should be conducive to an independent judiciary may seem to have adverse consequences. We conclude that cultural traits are of fundamental importance for the quality of formal institutions, even in societies as highly developed as the EU member states.

The Structure of the Rosenberg Self-Esteem Scale

Abstract. The Rosenberg Self-Esteem Scale (RSES; Rosenberg, 1965 ) intends to measure a single dominant factor representing global self-esteem. However, several studies have identified some form of multidimensionality for the RSES. Therefore, we examined the factor structure of the RSES with a fixed-effects meta-analytic structural equation modeling approach including 113 independent samples (N = 140,671). A confirmatory bifactor model with specific factors for positively and negatively worded items and a general self-esteem factor fitted best. However, the general factor captured most of the explained common variance in the RSES, whereas the specific factors accounted for less than 15%. The general factor loadings were invariant across samples from the United States and other highly individualistic countries, but lower for less individualistic countries. Thus, although the RSES essentially represents a unidimensional scale, cross-cultural comparisons might not be justified because the cultural background of the respondents affects the interpretation of the items.

National Culture and the Choice of Exchange Rate Regime

Based on the social analysis framework of Williamson, we argue that national culture – especially the individualism/collectivism dimension – located in the social embeddedness level can guide behaviors and decisions in a country, including the choice of exchange rate regime. We argue that individualistic societies are more likely to choose floating regimes because their economic agents are independent, overconfident, and have higher levels of risk tolerance. Individualistic societies are also associated with better financial development, fewer capital controls, and more democratic institutions, which are all tied to a higher probability of choosing a floating exchange rate regime. We use data on 78 countries over the 1976-2014 period, and we control for common determinants of exchange rate regimes. We find that individualistic countries have a significantly higher probability of implementing a floating regime than a fixed regime. Our evidence is robust to using an instrumental variables approach, an alternative estimation technique, an alternative regime classification, alternative proxies for culture, a subsample analysis, and additional controls. We also find that other cultural dimensions (uncertainty avoidance, power distance, and masculinity) can influence the choice of exchange rate regime, but their effect is weaker than that of individualism.

Modelling predictors of earthquake hazard preparedness in Nepal

Abstract In countries exposed to natural hazards, population preparedness is an important component of a comprehensive disaster risk reduction strategy. Recognition of poor preparedness, despite risk acknowledgement, prompted the development of theories for identifying motivators and barriers to hazard preparedness. While the majority of preparedness theorising and research has been in culturally individualistic countries, recent years have witnessed growing interest in applying the theories to more collectivistic settings. However, limited empirical evidence exists concerning the application of these theories in developing countries where disaster impacts are substantial. This paper assesses population preparedness in the aftermath of a major disaster in a developing country. Two theories of preparedness Protection Motivation Theory (PMT) and Community Engagement Theory (CET), which have been previously applied in natural hazard contexts, were integrated to develop a new model of earthquake hazard preparedness. The validity of the proposed model was explored using 306 household surveys collected from Chainpur and Jeewanpur Village Development Committees, Dhading, Central Nepal during a field visit in April-May 2016. Structural Equation Modelling (SEM) in SmartPLS version 3.2.4 revealed that individual risk beliefs (risk appraisal and coping appraisal) and community and institutional factors could predict hazard preparedness in Nepal. The model was moderately successful (R2 41.6%) in predicting that earthquake hazard preparedness occurs at the individual cognition phase and is also influenced by community and institutional phases.

Lost in Translation: The Effects of Cultural Values on Bank Failures Around the World

We conduct the first broad-based international study on bank-level failures covering 92 countries over 2000-2014, investigating national culture variables as failure determinants. We find individualism and masculinity are positively associated with bank failure, but operate through different channels. Managers in individualist countries assume more portfolio risk, while governments in masculine countries allow banks to operate with less liquidity and less often bail out troubled institutions. Findings are robust to accounting for endogeneity, different techniques and measures, and additional controls. Results have implications for prudential policies, including regulation, supervision, and bailout strategies that may partially mitigate some negative effects of culture.

Global perspectives on top management team pay structures

PurposeThe purpose of this paper is to investigate the relation between countries’ values of individualism/collectivism and organizations’ top management team (TMT) pay structures. Individualistic countries are expected to prefer more hierarchical TMT pay structures and collectivist countries are expected to prefer more egalitarian TMT pay structures. The manuscript also investigates the international implications of the relation between TMT pay structures and organizational performance. Specifically, it is proposed that a country’s level of individualism/collectivism will mediate the relation between TMT pay structure hierarchy and organizational performance.Design/methodology/approachA pooled sample of data from 56 organizations in 12 countries was used to investigate the research questions. Individualism/collectivism was measured using country specific individualism/collectivism scores and top management pay structures were operationalized using Gini coefficients. Organizational performance was evaluated using return on assets.FindingsSupport was found both for a preference for more hierarchical TMT pay structures in individualistic countries, and that a country’s level of individualism/collectivism mediates the relationship between an organization’s top management’s pay structure and company performance.Originality/valueFindings demonstrate that organizations use pay structures consistent with their environments. Results suggest cultural dimensions can contribute to understanding cross-national TMT pay structures and that national culture plays a significant role in the relationship between TMT pay structure and company performance.

Individualism and stock price reaction to market-wide information

In less individualistic countries the market-wide information is more incorporated in stock prices. This result is no longer valid in the global crisis when individualistic investors change their behavior by focusing more on market-wide information.

Investigating gender differences in consumers’ experience of guilt: A comparative study

The literature of guilt in the context of consumer behavior is notably limited. It is particularly limited with respect to examining gender differences across nations. Existing studies have only evaluated gender differences, in terms of consumer guilt, in the United States. In addition, those studies evaluated gender differences in specific consumption situations such as consumer boycotting and food consumption. Thus, they do not give a comprehensive understanding of gender variations in consumer guilt. Notably, gender differences with regard to consumer guilt were shown to be limited in countries other than the United States. These studies provided contradictory results to established findings in social psychology. In view of this, by using quantitative techniques, numerous consumption settings, and samples from two distinct countries, this study provides a holistic assessment of gender differences in consumer guilt across nations. The findings indicate that gender differences, with respect to consumer guilt, are predominately present in individualistic countries and notably absent in collectivist countries. Hence, marketers should consider gender as an influential variable when devising guilt related strategies in individualistic countries. In contrast, marketers may reconsider allocating resources, with respect to gender related marketing strategies, in collectivist countries.

The interaction between individualism and wellbeing in predicting mortality: Survey of Health Ageing and Retirement in Europe

The link between greater wellbeing and longevity is well documented. The aim of the current study was to test whether this association is consistent across individualistic and collectivistic cultures. The sample consisted of 13,596 participants from 11 European countries, each of which was assigned an individualism score according to Hofstede et al.'s (Cultures and organizations: software of the mind, McGraw Hill, New York, 2010) cultural dimension of individualism. We tested whether individualism moderated the cross-sectional association between wellbeing and self-rated health or the longitudinal association between wellbeing and mortality risk. Our analysis revealed a significant interaction between individualism and wellbeing such that the association between wellbeing and self-rated health or risk of mortality from cardiovascular disease was stronger in more individualistic countries. However, the interaction between wellbeing and individualism was not significant in analysis predicting all-cause mortality. Further prospective studies are needed to confirm our finding and to explore the factors responsible for this culturally dependent effect.

Judicial Independence in the EU A Puzzle

Based on data from the EU Justice Scoreboard, we identify a puzzle: National levels of judicial independence (as perceived by the citizens of EU member states) are negatively associated with the presence of formal legislation usually considered as conducive to judicial independence. We try to resolve this puzzle based on political economy explanations and specificities of legal systems, but to no avail. We then ask whether cultural traits can help to put together the puzzle. And indeed, countries with high levels of generalized trust (and to a lesser extent individualistic countries) exhibit increased levels of de facto judicial independence and, at the same time, reduced levels of de jure judicial independence. The combination of these two effects can explain why judicial reforms that should be conducive to an independent judiciary may seem to have adverse consequences. We conclude that cultural traits are of fundamental importance for the quality of formal institutions, even in societies as highly developed as the EU member states.

Cross-cultural comparisons of drinking motives in 10 countries: Data from the DRINC project.

This study tested the measurement invariance of the Drinking Motives Questionnaire-Revised Short Form (DMQ-R-SF) in undergraduates across 10 countries. We expected the four-factor structure to hold across countries, and for social motives to emerge as the most commonly endorsed motive, followed by enhancement, coping and conformity motives. We also compared individualistic and collectivistic countries to examine potential differences in the endorsement of drinking motives when countries were divided according to this broad cultural value. A sample of 8478 undergraduate drinkers from collectivistic (Portugal, Mexico, Brazil, Spain; n = 1567) and individualistic (Switzerland, Hungary, Canada, the Netherlands, the UK and Ireland, and the USA; n = 6911) countries completed the DMQ-R-SF. Countries were classified as individualistic or collectivistic based on world-wide norms. Using multigroup confirmatory factor analysis, the 4-factor model of the DMQ-R-SF showed configural and metric invariance across all 10 countries. As predicted, the rank order of undergraduates' drinking motive endorsement was identical across countries (social > enhancement > coping > conformity), although a mixed model analysis of variance revealed a significant interaction where undergraduates from individualistic countries more strongly endorsed social and enhancement motives relative to undergraduates from collectivistic countries. There was broad cross-cultural consistency in the factor structure and mean patterns of drinking motives. Undergraduate students appear to drink mainly for positive reinforcement (i.e. for social and enhancement reasons), although this tendency is particularly pronounced among those from more individualistic countries. [Mackinnon SP, Couture M-E, Cooper ML, Kuntsche E, O'Connor RM, Stewart SH, and the DRINC Team. Cross-cultural comparisons of drinking motives in 10 countries: Data from the DRINC project.

How does interpersonal justice affect outside directors’ governance behavior? A cross-cultural comparison

We examine the impact of interpersonal justice among outside directors on the board and between a director and the CEO regarding the director’s monitoring and resource provision behaviors in different cultural contexts. We argue that directors from individualistic countries are more influenced by CEO interpersonal justice while directors from collectivistic countries are more affected by the board interpersonal justice. Our main effect results indicate that interpersonal justice with board members is positively related to both monitoring and resource provision by a director, while CEO interpersonal justice is related only to resource provision. Our results also show different effects on the director’s behaviors between three countries, i.e., Canada, Singapore, and Spain. We found that CEO interpersonal justice is positively associated with resource provision in Canada, while board interpersonal justice is positively related to both monitoring and resource provision in Singapore and Spain. These results suggest that directors discharge their board duties differently by how they are treated by other directors and the CEO and that their governance behaviors vary by culture. This study contributes to the literature on comparative corporate governance by showing the differences in directors’ behaviors in different cultural contexts.

Individualism and Corruption: A Cross‐Country Analysis

While the role of cultural norms in determining corruption is well‐explored in the empirical literature, the relationship between a specific aspect of culture, that is, individualism versus collectivism, and corruption is rather unexplored. This paper investigates the relationship between individualism/collectivism and corruption in a large cross‐section of countries. To establish causality, the paper uses an index of historical prevalence of infectious diseases and a measure of genetic distance between the population in a country from that in the United States to instrument the individualism/collectivism variable. We find that more individualistic countries have lower levels of corruption (perception). This relationship is robust to the inclusion of a rich set of control variables and to the use of alternative measures of corruption.