Low Uncertainty Avoidance Research Articles

Understanding the Influence of National Culture on Employee Ownership Mechanisms

Employee ownership is positively associated with firm performance. However, in addition to generally explored firm and industry related factors, this relationship may also be contingent on cultural factors. Specifically, culture may influence the strength of the relationship between employee ownership and firm performance, as well as the extent of adoption of employee ownership among firms in a country. In a sample of 1,486 firms representing 9,893 firm-years between 2006 and 2014, we find that employee ownership is positively associated with firm performance in cultures with high individualism, low power distance, or low uncertainty avoidance. These findings are noteworthy because, in drawing on instruments proposed for cultural dimensions, we controlled for endogeneity from firm-level adoption of employee ownership and from the influence of cultural dimensions on the employee ownership-firm performance relationship. We discuss theoretical and practical implications of our findings.

Core Job Characteristic and Uncertainty Avoidance: Into the Black Box of Transformational Leadership Effect on Creativity

AbstractDrawing upon the job characteristic model and the “management of meaning” perspective, this study examines the process and conditions through which transformational leadership fosters employee creativity. Our results reveal that the effect of transformational leadership on creativity is mediated by employees’ perceptions of core job characteristics (variety, identity, significance, autonomy, feedback). This mediation effect is further moderated by employees’ uncertainty avoidance orientation. Specifically, transformational leaders foster creativity through followers’ perceptions of core job characteristics only among employees low on uncertainty avoidance. The association between enhanced job characteristics and creativity is more positive for employees with low uncertainty avoidance orientation than those with high uncertainty avoidance orientation. Implications and future research directions are discussed.

The relationship between national culture and the use of professional services: Evidence from two cross-country studies

Each year, clients spend large sums on professional services, such as accounting services, legal services and consulting services. While research has found significant cross-country differences in organizations’ spending on professional services, we do not know why they occur. Inspired by the organizational buying behavior literature, this paper investigates the influence of national culture on the use of professional services, particularly management consulting services. As the use of professional services involves considerable uncertainties—particularly for the buyer—it can be assumed to be influenced by cultural differences regarding the level of Uncertainty Avoidance, Individualism and Masculinity. By drawing on two independent cross-country studies, we show that organizations in high uncertainty avoidance and individualistic cultures use professional services less than organizations in low uncertainty avoidance and collectivist cultures. We found no relationship between Hofstede's dimension of Masculinity and the use of professional services. The findings contribute to the theorizing on how the cultural context influences organizational buying behavior and the purchasing of professional services.

Service models and culture: impact on work behaviours

PurposeService employees’ cultural values play an integral part in the service encounter. The purpose of this study is to investigate whether frontline employees’ (FLEs) individual cultural values moderate the relationship between service models and work behaviours and whether these behaviours influence their psychological well-being.Design/methodology/approachData were collected online from 341 US and Indian respondents who spent at least 40 per cent of their work time interacting with customers. Cultural values were measured as individual-level constructs. Partial least squares structural equation modelling was used to test hypotheses.FindingsIndividualism/collectivism significantly moderates the relationship between service models and work-related outcome, in particular organisational citizenship behaviour (OCB), while uncertainty avoidance does not. Collectivism strengthens the positive linkage between the win-win service model and OCB but weakens the association of OCB with the efficiency model. FLEs with the win-win model display more surface acting when they have low uncertainty avoidance and high power distance. Employee psychological well-being is then influenced negatively by surface acting, but positively by OCB.Research limitations/implicationsA more varied sample covering additional countries and a wider range of industries could provide additional insights.Practical implicationsThe results of this study are particularly beneficial for service firms that require to satisfy customers by managing culturally diverse FLEs.Originality/valueExtending the limited research on service models, this study examines the interplay of culture and service models and its impact on FLE work behaviours and the resultant well-being. The findings thus provide greater insights in how service employees’ cultural orientations influence their work behaviours and psychological well-being.

A preliminary study of Hello Barbie in Brazil and Argentina

A smart city is an urban development vision based on Information and Communication Technology (ICT) and the Internet of things (IoT) for the city’s management and operations. The smart city concept is raised simultaneously in many modern societies. IoT is always playing an important role as smart devices to support complex scenarios in smart cities. A smart toy, such as “Hello Barbie,” is a smart device consisting of a physical toy component that connects to a computing system with online services through networking to enhance the functionality of a traditional toy. In this research, we particularly studied Brazilian and Argentinian consumers’ perceived innovativeness, risks and benefits of smart toys and their purchase intention toward such toys. Results indicate that Brazilian consumers have better perception and evaluation of the toy and thus higher purchase intention than Argentinian consumers do. Such difference may be explained by the cultural differences between the two countries, such as relatively low vs. high uncertainty avoidance. We also provide our recommendations for smart toys manufacturers to address these issues for the future products.

Uncertainty avoidance as a moderator for influences on foreign resident dining out behaviors

PurposeThe purpose of this paper is to examine the moderating effect of uncertainty avoidance (UA) on the relationships among subjective knowledge, attitude toward Korean foods and dining out behavioral intentions (BI) of foreign residents in Korea.Design/methodology/approachA total of 247 foreign residents in Korea were participated through a street intercept survey at several locations in metropolitan areas of South Korea. Subsequently, the samples were divided into two groups (a low UA group and a high UA group) for multiple group analysis to examine the moderating role of UA.FindingsThe results of structural equation modeling showed that subjective knowledge and attitude toward Korean foods significantly influenced intention to visit Korean restaurants. Furthermore, multiple group analysis results showed that UA had a significant moderating effect as a cultural dimension on the relationships between subjective knowledge and BI, as well as between attitude and BI.Research limitations/implicationsThis research has made the first attempt to account for UA in examining the relationships among subjective knowledge, attitude and BIs, especially for ambiguous situations where foreign residents who are new to the mainstream Korean food culture face challenges in visiting Korean restaurants.Practical implicationsThe findings indicate that enhancing subjective knowledge about Korean foods should increase the probability of foreign residents visiting Korean restaurants, so restaurant marketers should consider subjective knowledge as they work to encourage foreign residents to try Korean foods. Furthermore, planning strategies for marketing to foreign residents should consider level of UA among foreigners.Originality/valueThis study first illustrates the value of considering the cultural trait of UA in examining dining out behavior at ethnic restaurants. The UA trait sheds light on how subjective knowledge helps predict attitude and dining out BI at ethnic restaurants.

Organisational socialisation: differences in consequences between employees from nations with high and low uncertainty avoidance

This study assumes that the effect of organisational socialisation may be different in different cultural contexts and therefore, attempts to investigate the moderating effect of national culture value-uncertainty avoidance - on the relationship between institutionalised socialisation tactics and work-related attitudes by focusing the differences between Turkey and India. Using data collected simultaneously from India and Turkey, the authors conducted multi group structural equation modelling (SEM) approach to compare the research model across the two nations. The results indicate that the effects of institutionalised socialisation on normative commitment and intention to quit are stronger for employees from nation with low UA tendency while the effects of institutionalised socialisation on affective commitment, job satisfaction and organisational identification are stronger for employees from nation with high UA tendency.

Organisational socialisation: differences in consequences between employees from nations with high and low uncertainty avoidance

Organisational socialisation: differences in consequences between employees from nations with high and low uncertainty avoidance

Incorporating Hofstede’ National Culture in Human Factor Analysis and Classification System (HFACS): Cases of Indonesian Aviation Safety

National culture plays an important role in the application of ergonomics and safety. This research examined role of national culture in accident analysis of Indonesian aviation using framework of Human Factors Analysis and Classification System (HFACS). 53 Indonesian aviation accidents during year of 2001-2012 were analyzed using the HFACS framework by authors and were validated to 14 air-transport experts in Indonesia. National culture is viewed with Hofstede’ lens of national culture. Result shows that high collectivistic, low uncertainty avoidance, high power distance, and masculinity dimension which are characteristics of Indonesian culture, play an important role in Indonesian aviation accident and should be incorporated within HFACS. Result is discussed in relation with HFACS and Indonesian aviation accident analysis.

Madurese cultural communication approach

Madura is a tribe with a cultural entity influenced by the ecological aspect and Madurese people. Assessing Madurese culture cannot be separated from the relation of society and ecological aspects that form the characteristics of Madura culture. Stereotypes of Madurese include a stubborn attitude, and carok or killing as a problem solving. On the other hand, Madurese are known to be inclusive, religious, and hardworking. The basic assumption is that the ecological conditions in Madura also shape the social and cultural life of the Madurese. Therefore, judging the Madurese cannot just be seen from a single event only. Moreover, the assessment only focuses on Madurese violence and disregards their structure and social aspects. Assessing Madura culture as a whole can explain the characteristics of Madurese community. According Hofstede culture is a characteristic mindset and perspective of individuals or groups of society in addressing a distinguished life. These differences distinguish individuals from others, or one country to the other. According to Hofstede to be able to assess the culture can be explained by four dimensions namely, individualism-collectivism, uncertainty avoidance, masculinity-femininity and power distance. The method used in this research is a case study. The Result is Madurese classified collectivism can be viewed from the pattern of settlements called kampong meji. Madurese can be classified into low and high uncertainty avoidance. the power distance for the Madurese is classified as unequally or there is a distance of power based on social groups. The element of masculinity of the Madurese is shown to be found when the earnestness of work.

Expatriates Perceptions toward Hofstede’s Indonesia Cultural Dimensions

The purpose of this research was to explore the experiences of expatriates in Indonesia, related to Hofstede’s Indonesia cultural dimensions. This study applied a phenomenological qualitative study and used purposive sampling to select the participants. Data were gathered using the semi-structured interview with appointments set before the meeting. The interviews were conducted on an individual basis and were recorded. Then, the data were transcribed and analyzed through coding and categorizing until sets of themes occurred. The results show that the majority of participants agree Indonesia has collectivism and low uncertainty avoidance culture. Meanwhile, the expatriates’ experiences toward high power distance dimension in Indonesia vary.

HUBUNGAN VARIABEL DEMOGRAFI DAN DIMENSI BUDAYA DENGAN PERILAKU KOMPLAIN WISATAWAN HOTEL BERBINTANG DI BALI


 This research was conducted to determine the relationship of demographic variable and cultural with complaints behavior of star hotels guest in Bali. Respondents in this study are 60 foreign guests and 60 domestic guests. This research uses consumer demographic and hofstede’s cultural dimensions to investigate the differences of foreigner and domestic complaining behavior. The analysis techniques used were various statistical methods such as frequency distribution, crosstab analysis and chi-square test. The result showed that from demographic variable, foreign guests with high income tend to make public complaint while domestic guests with low and medium income are likely to engage with private complaint. Meanwhile, from cultural dimension perspective, guests with low power distance, in an individualism culture and low uncertainty avoidance are tend to take public complaint while guests with high power distance, in a collectivism culture and high uncertainty avoidance are tend to take private action.

The Happy Culture: A Theoretical, Meta-Analytic, and Empirical Review of the Relationship Between Culture and Wealth and Subjective Well-Being

Do cultural values enhance financial and subjective well-being (SWB)? Taking a multidisciplinary approach, we meta-analytically reviewed the field, found it thinly covered, and focused on individualism. In counter, we collected a broad array of individual-level data, specifically an Internet sample of 8,438 adult respondents. Individual SWB was most strongly associated with cultural values that foster relationships and social capital, which typically accounted for more unique variance in life satisfaction than an individual’s salary. At a national level, we used mean-based meta-analysis to construct a comprehensive cultural and SWB database. Results show some reversals from the individual level, particularly masculinity’s facet of achievement orientation. In all, the happy nation has low power distance and low uncertainty avoidance, but is high in femininity and individualism, and these effects are interrelated but still partially independent from political and economic institutions. In short, culture matters for individual and national well-being.

The impacts of cultural values on bilateral international tourist flows: a panel data gravity model

This study explores the impacts of Hofstede’s six cultural dimensions on international tourist flows. A panel data gravity model was used to analyse bilateral tourist flows between 81 origin countries and 32 destination countries from 1995 to 2008. This model highlights cultural factors using the push and pull framework and explains their influence vis-a-vis self-image congruity theory, arousal theory, and cultural theory of risk. Results indicate that when controlling for the effects of distance, population, and GDP per capita, international tourists tend to flow out of countries with lower Power Distance, higher Individualism, lower Masculinity, higher Long-Term Orientation, and higher Indulgence. Countries with higher Individualism, lower Uncertainty Avoidance, and higher Indulgence tend to attract more international tourists. In the push and pull model, tourist source countries’ cultural values, such as low Power Distance, Individualism, Femininity, and Indulgence can be considered push factors in international travel, while destination countries’ cultural values of Individualism, Uncertainty Acceptance, and Indulgence act as pull factors. Self-image congruity theory is supported in the cultural dimension of Uncertainty Avoidance Index. Recommendations for destination marketing are made based on the findings.

The Impact of National Culture on Financial Crime: A Cross Country Analysis

Although laws, rules and regulations are existing, financial crimes is a widespread phenomenon. Panama Leaks has proved that people from all over the world are participating in money laundry and financial crimes. In this study, we have investigated the influence of national culture on financial crimes across 78 countries. Using Hofstede’s cultural framework as a basis for our hypotheses and Basel Anti-Money Laundering (AML) Index as a proxy for financial crimes. The results have shown that the financial crime increases if the country’s profile is characterized by low uncertainty avoidance, low individualism, high masculinity, and low long-term orientation. Laws, regulations and sanctions are not the only factors that can help in deterring the crime, but the government has to go through a holistic approach that includes cultural factors as well.

Foreign bank subsidiaries’ risk-taking behavior: Impact of home and host country national culture

This paper examines whether the risk-taking behavior of foreign affiliates of multinational banks is more influenced by the national culture of their parent banks’ home country or the national culture of foreign affiliates’ host country. The study uses a dataset of 292 foreign affiliates (i.e., subsidiaries or branch operations) operating in 66 countries having parent banks in 26 countries for empirical analysis. National culture of both home and host countries is measured with four dimensions—uncertainty avoidance, individualism, masculinity and power distance—of Hofstede's framework of national culture. Findings suggest that the national culture of parent banks’ home country has higher impact on the risk-taking behavior of foreign affiliates of multinational banks than the national culture of their host country. Specifically, foreign affiliates’ risk-taking is higher if parent banks’ home country has low uncertainty avoidance, high individualism and low power distance cultural values. This study extends our understanding that how informal institutions, such as the national culture, influence the financial decisions in multinational banks.

Foreign Bank Subsidiariess Risk-Taking Behavior: Impact of Home and Host Country National Culture

This paper examines whether the risk-taking behavior of foreign affiliates of multinational banks is more influenced by the national culture of their parent banks’ home country or the national culture of foreign affiliates’ host country. The study uses a dataset of 292 foreign affiliates (i.e., subsidiaries or branch operations) operating in 66 countries having parent banks in 26 countries for empirical analysis. National culture of both home and host countries is measured with four dimensions—uncertainty avoidance, individualism, masculinity and power distance— of Hofstede’s framework of national culture. Findings suggest that the national culture of parent banks’ home country has higher impact on the risk-taking behavior of foreign affiliates of multinational banks than the national culture of their host country. Specifically, foreign affiliates’ risk-taking is higher if parent banks’ home country has low uncertainty avoidance, high individualism and low power distance cultural values. This study extends our understanding that how informal institutions, such as the national culture, influence the financial decisions in multinational banks.

Group cultural values and political skills: A situationist perspective on interpersonal citizenship behaviors

Drawing on Mischel’s (1968) situationist perspective, we theorized that in a weak situation, one created by a group culture of low power distance (PD) or low uncertainty avoidance (UA), political skills increase the display of interpersonal citizenship behaviors. In a strong situation, one created by a high group PD or high group UA, the application of political skills is constrained. In a sample comprising of supervisor–employee groups from Canada and India, we highlight group culture as an important boundary condition on interpersonal citizenship behaviors and recommend that leaders carefully consider the cultures that they create in their groups.

FACING 2020: THE 9 TRAITS OF SUCCESSFULL MIGRANT ENTREPRENEURS IN THE MUNICIPALITY OF ROME

Abstract:The distinctiveness of migrants’ entrepreneurial propensity can be explained by considering both internal characteristics of the individual migrant, as well as the external environment of the host economy he/she operates in (Kloosterman et al. 1999). Migrants can perceive and seek entrepreneurial opportunities through specific sets of resources and personality-traits (Kloosterman/Rath 2001, Kloosterman 2010). Despite of this, the topic is vastly under-studied compared to its economic importance. After an in-depth study of the literature status quo about it, the paper analyses the motivation, intention, self-efficacy, culture, entrepreneurial orientation and performance of immigrant entrepreneurs. The main aim is to verify to what extent perceptions and skills of these immigrant entrepreneurs are similar to entrepreneurial psychological constructs studied in the literature. The used research instrument was the semi-structured interview consisting of 49 open-ended questions directed at the sample under examination. The results of the study showed a significant correlation between motivation and business performance (a motivated entrepreneur is more likely to succeed in business than an unmotivated entrepreneur) and a significant positive correlation between culture and motivation to start a business (a culture that is supportive of entrepreneurial activities, lowuncertainty avoidance, high individualism and lowpower distance relates positively to a high level of entrepreneurial self-efficacy).Keywords: Migrants, Entrepreneurs, Traits, Europe 2020

Comparison of national e-health implementation in the United States and South Korea

With the development of the health care industry, there has been growing recognition that e-health implementation is needed to improve the efficiency, quality, and safety of care. In addition, a review of previous studies suggests that much can be learned by investigating the difference in national e-health implementation in the United States and in South Korea. To this end, the main objective of this article is to compare the national e-health implementation in the case of the United States and South Korea. The results show that in the United States a decentralized e-health implementation is being followed by individual-level e-health. South Korea is pursuing ubiquitous health u-health after a hospital information system and electronic health were implemented. The United States still lags behind many other countries in the implementation of e-health, possibly due to its low uncertainty avoidance culture. South Korea has been among the frontrunner groups in e-health implementation as a consequence of its highly developed telecommunication infrastructures and high uncertainty avoidance culture. On the basis of these results, we recommend that establishing health care policies be done on a national scale that takes into account the countries' cultures.