Individualism-collectivism cultural differences in performance feedback theory

Abstract

PurposePerformance feedback theory (PFT) has informed analyses in numerous national contexts and has been used to explain various business and management activities of firms. Stemming from behavioral theory and grounded in a cognitive perspective, which views organizational actions as being the results of decisions produced by groups of individual decision-makers, PFT research has mostly assumed the universal nature of cognition and decision-making processes. However, PFT also presumes that individual decision-makers bring with them different backgrounds and experiences. Hence, this paper offers propositions on how cultural differences in individualism-collectivism influence the major components of PFT, including the formation and revision of performance goals (aspiration levels), and search behaviors and risk preferences in response to gaps between goals and actual performance. Implications for future research and practice are discussed.Design/methodology/approachThis paper offers theoretical propositions for the above purpose.FindingsThis is not an empirical analysis.Originality/valueBy integrating the individualism-collectivism differences framework into the PFT model, the authors answer previous calls to integrate concepts and frameworks from other theories into PFT while considering the role of cultural differences in aspiration-consequence relationships. Additionally, much of PFT research has focused on outcomes, while actual internal processes have remained unobserved. By focusing on how cultural differences influence various PFT processes, this conceptual analysis sheds light on the unobserved bounds of decision-makers' cognitions.

The concept of “spatial knowledge” used by top-management-teams and CEOs in internationalization

“…So a description of spatial knowledge in the cognitive IB domain could further complement the existing TMT/CEO research on internationalization with a description of factors leading managers to consult their spatial knowledge and a description of how spatial knowledge can affect the search process. Research drawing upon the Behavioral Theory of the Firm argues managers pay attention to aspirational levels of performance (Li et al , 2018; Rhee et al , 2020; Shijaku et al , 2020). If aspirations are met, managers are satisfied.…”

“…If aspirations are met, managers are satisfied. If performance falls below aspirations, managers perceive a problem and "search" their current knowledge for solutions (Chittoor et al, 2019;Cyert and March, 1963;Greve, 2003bGreve, , 2018Rhee et al, 2020). If managers' existing knowledge does not offer a solution, they expand their search domain beyond their existing knowledge until acceptable solutions are identified and added to the stock of solutions available (Greve, 2003a(Greve, , 2018Madsen and Desai, 2010).…”

The dark side of teamwork–the relationship between social stressors, social resources and team member well-being in monocultural and multicultural work teams

“…the labor market) in which an individual is located has a profound influence on individual health outcomes of stress. Several studies refer to the cultural dimensions of collectivism and individualism as provided by Hofstede (1980) to differentiate between cultural values across different countries (see, for instance, Rhee et al, 2020;Rinne et al, 2013). Individualism and collectivism are the opposite ends of a dimension that reflects the significance of the individual versus the collective in a society (Rhee et al, 2020).…”

“…Several studies refer to the cultural dimensions of collectivism and individualism as provided by Hofstede (1980) to differentiate between cultural values across different countries (see, for instance, Rhee et al, 2020;Rinne et al, 2013). Individualism and collectivism are the opposite ends of a dimension that reflects the significance of the individual versus the collective in a society (Rhee et al, 2020). A society in which the interests of the group take priority over the interests of an individual can be described as collectivist culture (Hofstede et al, 2010).…”

Ethics-related value acculturation: the case of Thai employees working at UK and Japanese MNCs in Thailand

“…Amongst various cultural dimensions, that of individualism/collectivism is considered to affect ethical values and decision-making more than any other dimension (Husted and Allen, 2008). As a key distinguishing characteristic of individual and organisational behaviours across cultures (Rhee et al, 2020), individualism and collectivism are also closely related to the Ethics-related value acculturation way people work, further highlighting their relevance to work-related ethics (Husted and Allen, 2008). We therefore focus on this cultural dimension in our investigation.…”