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

Abstract

This 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 c..