Are Management Practices Culturally Contingent? Evidence from National Culture as a Moderator of the Effect of Management Practices on Firm Performance
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2019-07-16
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en
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Are management practices culturally contingent? Management practices and culture differ significantly across countries. Building on contingency theory and the assumption that behaving in accordance with national culture benefits firm performance, this paper empirically tests the interaction effect between management practices, national culture and firm performance. It evaluates the contribution on firm performance of three operational activities (monitoring, incentives and targets), which are moderated by national culture. Direct effects of national culture on management practices and on performance notwithstanding, results uncover no evidence that the performance consequences of management practices are contingent on culture. Instead more sophisticated practices are positively related to firm performance, independent from national culture.
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Faculteit der Managementwetenschappen