Culture and decision making

Abstract

a b s t r a c tThe study of culture and decision making addresses variations in how and why people from different cultures sometimes tend to decide differently. This review is organized around what is intended to be a comprehensive analysis of the distinct fundamental questions that people must answer in the process of making virtually all real-life decisions. Our emphasis was on recent developments as well as identifying important yet neglected topics (e.g., how decision episodes get started-or not, and why some decisions are never implemented). Early as well as current efforts have focused mainly on East Asian and North American Caucasian cultures, with little treatment of other populations. In such studies, individualism and collectivism have been the dominant explanatory factors although related but distinct concepts such as ''tightness" and ''looseness" have been welcome additions to recent discussions. Throughout, the review emphasizes practical concerns, such as the challenges of intercultural learning and collaboration.

Differences in Strategic Issue Interpretation across Cultures – A Socio‐Cognitive Perspective

“…This lack of clear findings and the absence of theoretical explanations regarding the effect of national cultures on strategic issue interpretation is surprising, as psychological research on culture and decision‐making has shown that cultural differences affect several aspects of the decision‐making process, including information perceptions and interpretations (Li et al ., ; Yates and de Oliveira, ). One reason for the clearer findings in psychological research might be the approach used to capture culture.…”

“…One reason for the clearer findings in psychological research might be the approach used to capture culture. While management research follows the values‐based approach, psychological research utilizes a socio‐cognitive approach to investigate the effects of culture on decision‐making (Peng and Knowles, ; Chua et al ., ; Yates and de Oliveira, ).…”

“…These differences influence perceptions and issue interpretation (Nisbett and Miyamoto, ). This line of research has adopted a socio‐cognitive approach to culture, which focuses on differences in cognitive styles among cultures (Peng and Knowles, ; Yates and de Oliveira, ). These cognitive styles reflect, for example, differences in thinking, such as the more dialectic and holistic thinking typical in East Asian cultures and the more analytical and linear thinking often seen in Western cultures (Varnum et al ., ).…”

“…These cognitive styles reflect, for example, differences in thinking, such as the more dialectic and holistic thinking typical in East Asian cultures and the more analytical and linear thinking often seen in Western cultures (Varnum et al ., ). Findings from psychological research on culture and decision‐making suggest that a socio‐cognitive approach might provide a more comprehensive explanation for the effect of cultural differences on strategic issue interpretation than the values‐based approach (Yates and de Oliveira, ).…”

State Government Roles As Moderator In Entrepreneurial Orientation And Organizational Stucture Relationship

“…EO studies were predominantly Western in nature (Covin and Slevin, 1989;Zahra and Covin, 1995;Lumpkin and Dess, 2001;Yates and Stephanie, 2016). A number of academic researchers questioned the applicability study of western practices of using similar framework to measure the degree of OC when dealings with developing countries.…”