The cultural characteristic of individualism/collectivism: A comparative study of implications for investment in operations between emerging Asian and industrialized Western countries

Damien Power; Tobias Schoenherr; Danny Samson

doi:10.1016/j.jom.2009.11.002

journal article Nov 10, 2009

The cultural characteristic of individualism/collectivism: A comparative study of implications for investment in operations between emerging Asian and industrialized Western countries

Damien Power Tobias Schoenherr

Danny Samson

Journal of Operations Management Vol. 28 No. 3 pp. 206-222 · Wiley

View at Publisher Save 10.1016/j.jom.2009.11.002

Abstract

AbstractThis study provides insight into the importance of national culture, investment in operations, and performance in the context of emerging Asian economies with a collectivist orientation, which are compared to industrialized Western nations with an individualist orientation. Hypotheses are developed and tested based on the cultural concept of individualism/collectivism, the theory of performance frontiers, and the extent of economic development. More specifically, data collected from 639 manufacturing plants in nine countries are used to first assess the influence of the cultural trait of individualism/collectivism on the extent of investment in structural assets (specifically: physical and capital‐based) and infrastructural assets (specifically: team‐based methods and improvement programs). Second, the influence of the extent of economic development on these investment factors is measured. Third, evidence is provided supportive of the theory of performance frontiers, and the nature of resource investments in the context of the cultural construct of individualism/collectivism. And fourth, support is provided for the efficacy of this theory, as well as for its compatibility and association with the resource‐based view of the firm. Overall, this study makes important contributions to both theory and practice, and provides evidence for the role played by the cultural characteristic of individualism/collectivism in determining plant level investment outcomes in emerging Asian economies.

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Details

Published: Nov 10, 2009
Vol/Issue: 28(3)
Pages: 206-222
License: View

Authors

Michigan State University

D

Danny Samson

Cite This Article

Damien Power, Tobias Schoenherr, Danny Samson (2009). The cultural characteristic of individualism/collectivism: A comparative study of implications for investment in operations between emerging Asian and industrialized Western countries. Journal of Operations Management, 28(3), 206-222. https://doi.org/10.1016/j.jom.2009.11.002

The cultural characteristic of individualism/collectivism: A comparative study of implications for investment in operations between emerging Asian and industrialized Western countries

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