Cross-Cultural Business Research: Introduction to the special issue

As markets become increasingly global, an understanding of the world's cultures is imperative. This special issue consists of nine articles devoted to increasing our understanding of culture. It follows the 11th Cross-Cultural Research Conference, which was held in Puerto Rico in December 2005. An open invitation to conference participants and other interested researchers resulted in 56 submissions for the special issue. Articles chosen were subjected to several rounds of double-blind reviews and revisions. They cover a variety of topics including vacationing, managerial competency appraisal, horizontal and vertical individualism and collectivism, consumer services, cultural conditioning, electronic word-of-mouth, the global hip-hop culture, ethical attitudes, and impulse buying behavior.     

When same is (not) the aim: A treatise on organizational cultural fit and knowledge transfer

Multinationals (MNCs) need to find the balance between developing a globally standardized organizational culture and having multiple locally- adapted organizational cultures. Past literature embodies the bias that differences between MNC units, unless managed, would lead to adverse consequences. To counter this negative bias, we focus on cultural fit, which is the amount of difference yielding maximum benefit. We argue that depending on comparison criterion and desired outcome, fit could be achieved by establishing similarities or maintaining differences. Using evolutionary economics, we explore knowledge transfer within MNCs and test our hypotheses on fit using a unique dyadic dataset from 186 MNCs.     

Does East Meet West in Business Ethics: An Introduction to the Special Issue

This article introduces and summarizes selected papers from the first World Business Ethics Forum held in Hong Kong and Macau in November 2006, co-hosted by the Hong Kong Baptist University and by the University of Macau. Business Ethics in the East remain distinct from those in the West, but the distinctions are becoming less pronounced and the ethical traffic flows both ways. Gabriel D, Donleavy is Professor and Dean of the Faculty of Business Administration at the University of Macau teaching Business Ethics, Business Negotiation and Advanced Management. His work has been published in Critical Perspectives in Accounting, Corporate Governance, the Journal of Business Ethics, Advances in Applied Business Strategy, the Journal of Higher Education Policy and Management, Long Range Planning and the Asian Review of Accounting which he co-founded. Kit-Chun Joanna LAM is Professor in Department of Economics of the Hong Kong Baptist University. She is also Guest Professor in the Centre for Business Ethics of the Shanghai Academy of Social Sciences, China. She received her Ph.D. degree in economics from Harvard University. Her work has appeared in the Journal of Business Ethics, Journal of Labor Economics, Canadian Journal of Economics, Economica, Journal of Comparative Economics, and Labour Economics. Simon S.M. Ho is Dean and Professor at the School of Business and Director for Corporate Governance and Financial Policy, Hong Kong Baptist University. He founded the Asia-Pacific Corporate Governance Conference and the world’s first master programme in corporate governance & directorship in 2004. He published over 40 academic refereed articles in leading journals such as Journal of Accounting, Accounting & Finance, Journal of Accounting & Public Policy, and Journal of Corporate Finance.     

Adapting adaptation: Expanding adaptive strategy theory to account for the East Asian business context

This paper extends international business theory by providing insights into contextual boundaries of the dominant strategic adaptation model, based on assumptions of low power distance and a bottom-up management style. We challenge them by examining the context of Asian organizations with contrasting management style and ask how it is possible for them to adapt. We propose a supplementary “top-down” model of adaptation, supported by empirical data from East Asian organizations. The model involves low autonomy of lower- and middle-level managers, but fluid communication from bottom to top, enabling informed but authoritarian adaptive decision-making exclusively at the behest of top management.     

Commitment to the Study of International Business and Cultural Intelligence: A Multilevel Model

Adopting a multilevel theoretical framework, we examined how metacognitive and motivational cultural intelligence influence an individual’s commitment to the study of international business (IB). Data from 292 undergraduate and graduate business students nested in 12 U.S. business school classes demonstrated that individuals’ metacognitive and motivational cultural intelligence are positively related to their commitment to the study of IB. Furthermore, there is additional commitment when the classrooms’ cultural intelligence climate is high. We discuss the implications of these findings within a classroom context that involves cross-cultural interactions.     

Culture,cognitive style and consumer response to informational vs. transformational advertising among East Asians: Evidence from the PRC

Existing literature suggests that people's cognitive styles vary significantly across nations and cultures, and that East Asians emphasize holistic information processing and are more receptive to transformational advertising than people in the West. Yet, both theoretical rationale and empirical evidence of the effect of cognitive style on consumers' advertising responses are lacking. This study proposes a congruency-activation model and adopts a three by two experimental design to examine Chinese consumers' attitude towards different advertisements. The results indicate that Chinese consumers prefer transformational and integrated ads to informational ads under both low and high involvement conditions. Protocol analysis shows that Chinese consumers engage in more affective processing than cognitive thoughts. Thus, marketers should consider the effect of the cognitive style of indigenous consumers when devising international advertising strategies.