Culture and Whistleblowing An Empirical Study of Croatian and United States Managers Utilizing Hofstede's Cultural Dimensions

Leaders and managers of today's multinational corporations face a plethora of problems and issues directly attributable to the fact that they are operating in an international context. With work-sites, plants and/or customers based in another country, or even several countries, representing a vast spectrum of cultural differences, international trade and offshore operations, coupled with increased globalisation in respect to political, social and economic realities, contribute to new dilemmas that these leaders must deal with. Not the least of these being a Code of Ethics and ethical decision making.This paper examines the differences in culture between a group of managers from the United States and similar group from Croatia using Hofstede's theory of International Cultures. The study explores how these cultural dimensions may help in our understanding of the differences in reported whistleblowing. The authors then postulate four hypotheses regarding various aspects of whistleblowing. These Hypotheses were than tested using a survey administered to a sample of U.S.A. and Croatian managers. Finally, the paper discusses the findings and practical implications for contemporary managers in the international arena.     

Ethical Judgment and Whistleblowing Intention: Examining the Moderating Role of Locus of Control

The growing body of whistleblowing literature includes many studies that have attempted to identify the individual level antecedents of whistleblowing behavior. However, cross-cultural differences in perceptions of the ethicality of whistleblowing affect the judgment of whistleblowing intention. This study ascertains how Chinese managers/professionals decide to blow the whistle in terms of their locus of control and subjective judgment regarding the intention of whistleblowing. Hypotheses that are derived from these speculations are tested with data on Chinese managers and professionals (n = 306). Statistical analysis largely supports the hypotheses, which suggests that an individual's locus of control does moderate the relationship between ethical judgment and whistleblowing.     

The opportunity to improve psychological competences of project managers in international businesses

Many projects are currently conducted in international businesses in which cultural issues play an important role. In‐depth analysis of the risks associated with the unknown of this type of issues offers companies a better understanding of how to focus their marketing tools to be more effective, and provides project managers with strategies to improve customer relationships. Hofstede's Cultural Dimensions and Meyer's Culture Map have demonstrated that every society possesses distinguishing features. These cultural theories serve as foundation for including the category of culture in a proposed Cultural Risk Breakdown Structure. Through a literature review, risks associated with cultural differences are identified in projects executed in Africa, China, and the Middle East. By linking these risks to cultural dimensions, it is possible to identify the psychological competences framework in international businesses. Therefore, the aim of this paper is to create not only a comprehensive record of these risks but also a list of the new skills and competences that project managers must possess to improve client satisfaction and make decisions in a cross‐cultural environment. By considering the association between psychological aspects and cultural issues, this analysis will be of considerable benefit for improving relationships in international contexts.     

The role of cross‐cultural absorptive capacity in the effectiveness of in‐country cross‐cultural training

Based on the theory of absorptive capacity, this study examines the following question. In the context of cross‐cultural training, can the amount of previously accumulated cultural knowledge affect the ability of a trainee to absorb further learning about a new culture, thus enhancing total knowledge and presumably cross‐cultural adjustment? In‐country cross‐cultural training was hypothesized to be more effective when the training components are divided and the sessions are distributed over time – resulting in increased cultural knowledge and greater cross‐cultural adjustment. Results from an experimental design suggested that in‐country cross‐cultural training can increase cultural knowledge, when distributed over time. The results also suggested that the training group had greater differences between pre‐training and post‐training scores on cross‐cultural adjustment, but the differences were not statistically different. The results, methodology and conclusions can be generalized to a variety of populations (e.g. international managers and expatriates) and organizations (e.g. multinationals). For international managers and expatriates, the results showed that in‐country cross‐cultural training, like predeparture cross‐cultural training, is also a viable intervention for knowledge acquisition.     

Cultural Orientation and Attitudes Toward Different Forms of Whistleblowing: A Comparison of South Korea,Turkey, and the U.K.

This article reports the findings of a cross-cultural study that explored the relationship between nationality, cultural orientation, and attitudes toward different ways in which an employee might blow the whistle. The study investigated two questions – are there any significant differences in the attitudes of university students from South Korea, Turkey and the U.K. toward various ways by which an employee blows the whistle in an organization?, and what effect, if any, does cultural orientation have on these attitudes? In order to answer these questions, the study identified six dimensions of whistleblowing and four types of cultural orientation. The survey was conducted among 759 university students, who voluntarily participated; 284 South Korean, 230 Turkish, and 245 U.K. Although all three samples showed a preference for formal, anonymous and internal modes of whistleblowing, there were significant variations related to nationality and cultural orientation. The findings have some key implications for organizational practice and offer directions for future research.     

A Cross-Cultural Perspective on Management in Kenya

ABSTRACT

The management discipline is largely populated by models embedded in western cultural views and values. This paper addresses the generally misplaced confidence of management scholars in utilizing western culture-based models of management to analyze management practices and perspectives in African countries. This paper starts with the premise that management is, at its core, a cultural practice that is derived from a cultural value system. As such, exporting US/western management models and practices abroad requires adaptation to local cultural dynamics and socioeconomic conditions. Furthermore, with western management models using nation-state as a unit of analysis to analyze culture, there is an assumption that all peoples (and localities) within a national culture are isomorphic in their value systems. From a cross-cultural management perspective, this is not only misleading but problematic because, by implication, international managers ignore internal cultural differences and dynamics and how various cultural groups interact with foreign businesses. This study argues that an informed understanding of a nation's sociopolitical history, economic conditions, geography, and internal cultural dynamics is crucial for international managers working in Africa. Using Kenya as an example, the study discusses the misplaced application of western culture-based management models and proposes a culturally-integrative framework of management.     

The Effects of Compensation Structures and Monetary Rewards on Managers’ Decisions to Blow the Whistle

Recent research indicates that compensation structure can be used by firms to discourage their employees from whistleblowing. We extend the ethics literature by examining how compensation structures and financial rewards work together to influence managers’ decisions to blow the whistle. Results from an experiment indicate that compensation with restricted stock, relative to stock payments that lack restrictions, can enhance the likelihood that managers will blow the whistle when large rewards are available. However, restricted stock can also threaten the effectiveness of whistleblowing systems without the presence of large financial rewards for whistleblowing. Thus, the large potential rewards for whistleblowing enacted by the Dodd–Frank Act appear timely as firms are moving toward compensation agreements that include greater proportions of restricted stock.     

The Effects of Cultural Dimensions on Ethical Decision Making in Marketing: An Exploratory Study

As more and more firms operate globally, an understanding of the effects of cultural differences on ethical decision making becomes increasingly important for avoiding potential business pitfalls and for designing effective international marketing management programs. Although several articles have addressed this area in general, differences along specific, cultural dimensions have not been directly examined. Hence, the purpose of this study was to examine differences in ethical decision making within Hofstede's cultural framework. The results confirm the utility of Hofstede's cultural dimensions and place ethical decision making within an overall theoretical framework. Sales agents from a high power distance, uncertainty avoidant, Confucian, collectivist culture (i.e., Taiwan) placed more value on company and fellow employee interests (vis-à-vis self interests) than did managers from a masculine, individualistic culture (i.e., the United States). American and Taiwanese managers did not differ in their deontological norms or on the importance that they placed on customer interests. The theoretical and managerial importance of these findings are also discussed.     

Antecedents of perceived national and corporate culture differences: evidence from Chinese international strategic alliances

We investigate the determinants of managers' perceptions of national and corporate culture differences, using data obtained from Chinese partner managers of international strategic alliances. An expected positive relationship is found between the extent to which the managers have experienced culture-related management impediments and their perceptions of national and corporate culture differences. An expected negative relationship is found between the extent to which the Chinese partner firms have adopted cultural management policies and the perception of national culture difference, but is not found for the perception of corporate culture difference. The authors find no support for the expected negative relationship between cultural sensitivity and the perception of national and corporate culture differences. Adoption of cultural management policies moderates the relationship between the extent to which managers have experienced culture-related management impediments and their perception of corporate culture difference, but not their perception of national culture difference. It was also found that the degree of cultural sensitivity moderates the relationship between the extent to which the Chinese managers have experienced culture-related management impediments and their perceptions of national and corporate culture differences.     

Towards a Custom-Made Whistleblowing Policy. Using Grid-Group Cultural Theory to Match Policy Measures to Different Styles of Peer Reporting

To be effective, whistleblowing policies should be adapted to the organisational culture. They need to be custom-made and not follow a one-size-fits-all logic, specifically when they are installed to stimulate responsible peer reporting, a highly sensitive and value-laden type of whistleblowing. This paper attempts to illustrate that grid-group cultural theory could help to construct a whistleblowing policy by linking reporting styles to the organisational culture. First, we will identify four types of policy measures that are hypothesized to be effective in four types of organisational culture. Second, we develop the hypothesis that certain organisational cultures can induce peer reporting that is harmful for the organisation. The whistleblowing policy can then be used as a catalyst for cultural change.     

International work experience: Is it really accelerating the way to the management board of MNCs?

International work experience is often claimed to be a prerequisite for managers in an MNC. This paper investigates how international work experience affects those managers who reach upper echelons. Drawing on both human capital theory and elite theory, we argue that stays abroad not only have beneficial, but also adverse effects on managers’ ascent to the top. By analysing the careers of 212 management board members from Germany, we find that once a certain threshold of international work experience is exceeded, being away from home impedes managers’ long-term career advancement. However, it is not only longer stays abroad that show a negative time effect; we are also able to reveal that being in countries with high geographic and cultural distance to the home country significantly decelerates managers’ speed of being appointed to the management board. Our findings demonstrate that conflicting interests exist between MNCs and high potentials who consider an international career. We stress that these conflicts call for being solved in managerial practice.     

Management of corporate culture through local managers’ training in foreign companies in China: a qualitative analysis

Corporate culture is a complex phenomenon in foreign companies located in the People's Republic of China. For the management team of an international enterprise, it is a challenging task to manage cultural differences. Education and training provided to local managers might be one of the important solutions. Therefore, this study explores the effects of local managers’ education and training on corporate culture in foreign companies in China. Using qualitative research, this paper presents different training forms existing in foreign companies. Furthermore, the training in general in terms of establishment of corporate culture was evaluated. General training is classified as formal and informal training or coaching in accordance with training purposes. Formal training refers to training that is indispensable to the survival and development of the corporation, while informal training is concerned with the training that happens without deliberate design or purposes. The two kinds of training can develop local managers in a complementary way. It is argued that these elements exert a complementary influence on the corporate culture with an emphasis on values and rituals.     

The Influence of Confucian Ethics and Collectivism on Whistleblowing Intentions: A Study of South Korean Public Employees

The current study presents the findings of an empirical inquiry into the effects of Confucian ethics and collectivism, on individual whistleblowing intentions. Confucian Ethics and Individualism–Collectivism were measured in a questionnaire completed by 343 public officials in South Korea. This study found that Confucian ethics had significant but mixed effects on whistleblowing intentions. The affection between father and son had a negative effect on internal and external whistleblowing intentions, while the distinction between the roles of husband and wife had a positive effect on those intentions. The effects of collectivism were also different depending on the specific types of collectivism. Horizontal collectivism had a positive effect on both types of whistleblowing intentions, whereas vertical collectivism did not show any significant effects on whistleblowing intentions. These results indicate that cultural traits such as Confucian ethics and collectivism may affect an individual’s whistleblowing intentions in degree and direction, making blanket predictions about cultural effects on whistleblowing difficult.     

Nationality and work role interactions: A cultural contrast of Israeli and U.S. entrepreneurs' versus managers' needs

The globalization of business ventures and the parallel search for sources of international competitive advantage have stimulated research relating cultural differences to entrepreneurial and managerial behaviors. Recent work by McGrath, MacMillan, and Scheinberg (1992) encouraged studies of managers and entrepreneurs in different cultures, suggesting that these comparisons may “… shed additional light into the interrelations between social structure, wealth creation, and cultural beliefs” (McGrath el at. 1992, p. 116). This study follows that advice.Cultural differences are powerful determinants of behavior, and many studies support the notion that managerial behavior must adapt to the national cultural setting to achieve success. A growing stream of entrepreneurial behavior research has explored differences in motivational needs between entrepreneurs and non-entrepreneurs of different countries, and found parallel differences across cultures. Given these views, we might expect to find need differences between entrepreneurs and managers within countries however, some entrepreneurship researchers have concluded that U.S. managers and entrepreneurs are more alike than different.To better understand need profile differences between and within cultures, we use a theory that suggests that culture is an important determinant of work behavior. The process through which culture affects work behaviors is described in “Cultural Self-representation Theory” (Erez and Earley, 1993). Based upon this theory, inferences from the entrepreneurial archetype, and analysis of the contrast between the cultures of Israel and the U.S., we propose that: (1) entrepreneurs and managers have different motivational needs within some national cultures, and (2) across national cultures there are systematic differences in motivational needs. Based on these premises, an interaction hypothesis between work role and nationality is suggested because of the importance of both culture and work role in determining motivational need differences. Data are collected from over 370 Israeli and U.S. entrepreneurs and managers.Results support cultural self-representation theory for the Israeli-U.S. and entrepreneur-manager case, because interactions between nationality and work role are exposed for various needs. This finding suggests that cultural differences are indeed important for understanding management motivational needs in different nations, and that the effectiveness of entrepreneurial approaches to management may be culture-sensitive. The study illustrates work-role differences between Israeli managers and entrepreneurs. We confirm past conclusions about U.S. entrepreneur-manager need similarities, and suggest that these need similarities are supported by the individualistic culture within U.S. organizations.     

Whistleblowing in Organizations: An Examination of Correlates of Whistleblowing Intentions,Actions, and Retaliation

Whistleblowing on organizational wrongdoing is becoming increasingly prevalent. What aspects of the person, the context, and the transgression relate to whistleblowing intentions and to actual whistleblowing on corporate wrongdoing? Which aspects relate to retaliation against whistleblowers? Can we draw conclusions about the whistleblowing process by assessing whistleblowing intentions? Meta-analytic examination of 193 correlations obtained from 26 samples (N = 18,781) reveals differences in the correlates of whistleblowing intentions and actions. Stronger relationships were found between personal, contextual, and wrongdoing characteristics and whistleblowing intent than with actual whistleblowing. Retaliation might best be predicted using contextual variables. Implications for research and practice are discussed.     

The role of communication competencies in international business relationship development

Effective communication between international business partners is critical for global success. Underlying national and organizational cultural differences in international business relationships creates hurdles to effective communication, hindering performance. To assist managers in understanding this issue, a model of communication effectiveness for international relationship development, derived from industry examples, theory, and a dataset consisting of 123 qualitative interviews conducted with American, Canadian, Chinese, and Japanese managers is presented. Further, in order to assist managers in the task of developing more effective communications, a six-step process aimed in directing managerial action is presented. By proactively managing its communications, a firm can develop stronger international business relationships facilitating the rapid response to market opportunities and challenges.     

Teaching Cross-Cultural Management Skills

Students who envisage careers in international business must learn to manage cultural differences on three levels: self, interpersonal, and organizational. Five related and synergistic exercises give students experience in dealing with and solving real-world problems in crosscultural management on all three levels. The multicultural college campus offers resources that are tapped by students and usually provides a situation of longstanding separation, alienation, or even hostility among various cultural groups that has defied decades of official ministrations. Through the five exercises students ire empowered as cross-cultural managers within their own work organization (i.e., the college) and prove to be highly successful in solving cross-cultural problems. The techniques learned in these exercises provide effective preparation for future management positions in the international arena.     

Perceptions about managerial advancement in the people's republic of China

Cultural differences are evident in the managerial advancement strategies of People's Republic of China managers. Using the findings of prior research for comparison, PRC managers were found to be similar to Hong Kong mangers in not valuing highly the strategies preferred by US managers that emphasize individual achievement. Yet PRC managers differ from the Hong Kong managers in terms of the extent to which information control/networking strategies meet ethical approval. The findings here support the implications of prior studies: awareness of cultural differences is necessary in order to understand managerial behavior and achieve success in international business transactions. © 1995 John Wiley & Sons, Inc.     

After the wrongdoing: What managers should know about whistleblowing

Most of us are likely at some point to observe wrongdoing in our organizations, and some of us will blow the whistle to someone with the authority to put a stop to the wrongdoing. Or we may be managers, inspectors, or auditors who serve as the official ‘complaint recipient’ when one of our colleagues wants to report wrongdoing in the organization. Whether we blow the whistle or are tasked with cleaning up after someone else does so, we are better off knowing in advance how the whistleblowing process usually plays out. In this article we discuss the pragmatic implications of 30 years of systematic research about whistleblowing: who does it and when, and why they choose to report the wrongdoing internally (within the organization) or externally (to outsiders). To avoid external whistleblowing, which entails all sorts of costs for the organization, we recommend that managers take clear steps: investigate the allegations, make the results of the investigation known to those affected, correct the problem if one is found, and avoid reprisal against whistleblowers. These actions can increase the chance that information about organizational wrongdoing stays inside the organization, where it may be remedied, instead of being made public.     

Contrasting consequences: Bringing charges of sexual harassment compared with other cases of whistleblowing

The phenomenon of whistleblowing seems puzzling in that whistleblowing presumably brings a wrongful practice to the attention of those with power to correct the situation. In this respect, whistleblowers act to serve the public interest in defeating harmful, illegal and unjust practices. Yet these persons suffer vilification and worse, not only from their fellow employees, but from members of the general public as well. Cases in which members of a discriminated minority report instances of job discrimination, and especially instances of sexual harassment resemble other cases in which an employee reports corporate or bureaucratic misdeeds. In the early 1970s those who brought charges of sexual harassment did suffer character assassination, reprisals and difficulties in finding equivalent employment afterwards. But by the mid-1980s, consequences for those bringing discrimination charges, and especially the charge of sexual harassment have come to differ in several important respects from other cases of whistleblowing. Examining the differences, and what seem to be underlying causes of these differences, provides some insight into the factors that set limits to the practice of whistleblowing in a democratic society.Natalie Dandekar teaches in the Philosophy Department at Bentley College. She writes in the areas of women's studies and computer ethics.