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When commitment isn’t enough: The cross-cultural interactive effects of commitment-inducement and compliance-enforcement on performance

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  • Way, Sean A.
  • Ulrich, Michael D.
  • Wright, Patrick M.

Abstract

The current study contributes to the ongoing discourse in the extant literature concerning the performance effects of the commitment-inducement and the compliance-enforcement approaches to the management of people and work. We expand on two research studies conducted in China to assess if the finding that commitment-inducement and compliance-enforcement result in higher organization financial and operational performance generalizes to corporate social responsibility performance and to countries and cultures across the globe. Using the current study’s large global multi-source sample, our findings illuminate that compliance-enforcement explained significant incremental variance in both organization financial and operational performance and organization corporate social responsibility performance beyond that of the commitment-inducement approach alone. Moreover, the highest levels of both performance outcomes were obtained by organizations that simultaneously used both commitment-inducement and compliance-enforcement; that is, hybrid governance. Compliance-enforcement was also found to have a more substantive relative effect on organization financial and operational performance while commitment-inducement was found to have a more substantive relative effect on organization corporate social responsibility performance. Furthermore, as hypothesized, at the between country-level, the relationship between the commitment-inducement approach of managing people and work and corporate social responsibility performance was found to be more negative both for a high individualism than a low individualism culture and for a high uncertainty avoidance than a low uncertainty avoidance culture, respectively. Whereas, the relationship between the compliance-enforcement approach and corporate social responsibility performance was found to be more positive for a high uncertainty avoidance than a low uncertainty avoidance culture. Finally, as hypothesized, at the between country-level, commitment-inducement and compliance-enforcement were found to be substitutes and have a negative synergistic effect on corporate social responsibility performance. Implications, limitations, and avenues for future research are discussed.

Suggested Citation

  • Way, Sean A. & Ulrich, Michael D. & Wright, Patrick M., 2024. "When commitment isn’t enough: The cross-cultural interactive effects of commitment-inducement and compliance-enforcement on performance," International Business Review, Elsevier, vol. 33(2).
  • Handle: RePEc:eee:iburev:v:33:y:2024:i:2:s0969593123001506
    DOI: 10.1016/j.ibusrev.2023.102250
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    References listed on IDEAS

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