A Framework Development Process to Integrate Cultural Value Dimensions in a Managerial Decision Making Context

AbstractWith the need for a mid-level contextualizing culture theory as the objective, this paper was to develop a framework integrating national culture value dimensions in a managerial strategic decision making context. The framework development process guided the identification of constructs to provide uniform coverage of the dimensions of study and distinguished between these dimensions, while contextualizing the cultural values into business decision-making processes and behavior. Building on the previous empirical advances and existing theory, this paper lays out the process, step by step, followed in the development of the framework and provides a map for contextual development that can be utilized with any chosen context. This process allows for the future development of measures that will capture the manifestation of culture in the context of business decision making and the decision-making process as it would apply to the interaction of two entities in an international exchange relationship.Keywords: National Culture, Individualism, Collectivism, Power Distance, Uncertainty Avoidance, Managerial Decision MakingJEL Codes: F23, Z13, O57, M16IntroductionResearchers have developed a variety of measures in order to explain the ways in which culture differs between national groups, (Hofstede, 1980, 1991, 2001; Hofstede, Hofstede, & Minkov, 2010; Javidian & House, 2001; Kluckhohn & Strodtbeck, 1961; Rokeach, 1973; Schwartz, 1994; Trompenaars, 1993, 1996). These measures include lists of values, value hierarchies, and value dimensions. Much of cross-cultural business research has utilized the Cultural Value Dimensions (CVDs) identified in the literature (Hall, 1976; Hofstede, 1980, 1991, 2001; Hofstede, et al.; Kluckhohn & Strodtbeck; McClelland, 1961; Parsons , 1951; Parsons & Shils, 1962; Schwartz, 1994) to explain cultural differences in behaviors, beliefs, and preferences as expressed in the workplace, even though the instruments measure societal culture in general.The two most recognized value surveys in business are studies by Hofstede (1980, 1991, 2001); Hofstede et al. (2010); and the GLOBE Study (Javidian & House, 2001). In a series of articles debating the research and resulting measures of Geert Hofstede (1980, 1991, 2001) with that of the GLOBE study (Javidian & House), a number of criticisms and limitations were identified (Earley, 2006; Hofstede, 2006; Hofstede et al.; Javidan, House, Dorfinan, Hanges, & Sully de Luque, 2006; Kirkman, Lowe, Gibson, 2006; Smith, 2006; ), in addition to the way that the findings are used. These "large-scale surveys" were used to define national culture and used primarily to identify differences between nations when conducting cross-cultural research. The explanatory power of such an approach was limited in a business environment. Thus, there is a need for midlevel theory that contextualizes or links culture to behavior (Earley, 2006). The current use of the societal-level measures provides a broad understanding of how cultural differences may manifest themselves in general in a society, but do not provide specific business environment explanatory power. Early (2006), in summing up his observations, stated, "We have enough of these values-based, large-scale surveys. I would now suggest that scholars refocus their attention away from any more of these values surveys and toward developing theories and frameworks for understanding the linkages among culture, perceptions, actions, organizations, structures, etc." (p. 928). With the need for a mid-level contextualizing theory in mind, this paper develops a framework integrating national culture value dimensions in managerial strategic decision-making context. The framework development process guided the identification of constructs to provide careful uniform coverage of the dimensions of study, and to distinguish between these dimensions, while contextualizing the cultural values into business decision-making processes and behavior. …