IDEAS home Printed from https://ideas.repec.org/a/eee/jobhdp/v136y2016icp106-118.html
   My bibliography  Save this article

Culture and decision making

Author

Listed:
  • Yates, J. Frank
  • de Oliveira, Stephanie

Abstract

The study of culture and decision making addresses variations in how and why people from different cultures sometimes tend to decide differently. This review is organized around what is intended to be a comprehensive analysis of the distinct fundamental questions that people must answer in the process of making virtually all real-life decisions. Our emphasis was on recent developments as well as identifying important yet neglected topics (e.g., how decision episodes get started—or not, and why some decisions are never implemented). Early as well as current efforts have focused mainly on East Asian and North American Caucasian cultures, with little treatment of other populations. In such studies, individualism and collectivism have been the dominant explanatory factors although related but distinct concepts such as “tightness” and “looseness” have been welcome additions to recent discussions. Throughout, the review emphasizes practical concerns, such as the challenges of intercultural learning and collaboration.

Suggested Citation

  • Yates, J. Frank & de Oliveira, Stephanie, 2016. "Culture and decision making," Organizational Behavior and Human Decision Processes, Elsevier, vol. 136(C), pages 106-118.
    • Handle: RePEc:eee:jobhdp:v:136:y:2016:i:c:p:106-118
    DOI: 10.1016/j.obhdp.2016.05.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0749597816303016
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.obhdp.2016.05.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Imai, Lynn & Gelfand, Michele J., 2010. "The culturally intelligent negotiator: The impact of cultural intelligence (CQ) on negotiation sequences and outcomes," Organizational Behavior and Human Decision Processes, Elsevier, vol. 112(2), pages 83-98, July.
    2. John L. Graham & Alma T. Mintu & Waymond Rodgers, 1994. "Explorations of Negotiation Behaviors in Ten Foreign Cultures Using a Model Developed in the United States," Management Science, INFORMS, vol. 40(1), pages 72-95, January.
    3. Erez, Miriam & Nouri, Rikki, 2010. "Creativity: The Influence of Cultural, Social, and Work Contexts," Management and Organization Review, Cambridge University Press, vol. 6(3), pages 351-370, November.
    4. Arkes, Hal R. & Hirshleifer, David & Jiang, Danling & Lim, Sonya, 2008. "Reference point adaptation: Tests in the domain of security trading," Organizational Behavior and Human Decision Processes, Elsevier, vol. 105(1), pages 67-81, January.
    5. Morris, Michael W. & Leung, Kwok, 2010. "Creativity East and West: Perspectives and Parallels," Management and Organization Review, Cambridge University Press, vol. 6(3), pages 313-327, November.
    6. Goncalo, Jack A. & Staw, Barry M., 2006. "Individualism-collectivism and group creativity," Organizational Behavior and Human Decision Processes, Elsevier, vol. 100(1), pages 96-109, May.
    7. Arkes, Hal R. & Hirshleifer, David & Jiang, Danling & Lim, Sonya S., 2010. "A cross-cultural study of reference point adaptation: Evidence from China, Korea, and the US," Organizational Behavior and Human Decision Processes, Elsevier, vol. 112(2), pages 99-111, July.
    8. Zemba, Yuriko & Young, Maia J. & Morris, Michael W., 2006. "Blaming leaders for organizational accidents: Proxy logic in collective- versus individual-agency cultures," Organizational Behavior and Human Decision Processes, Elsevier, vol. 101(1), pages 36-51, September.
    9. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    10. Yates, J. Frank & Lee, Ju-Whei & Shinotsuka, Hiromi & Patalano, Andrea L. & Sieck, Winston R., 1998. "Cross-Cultural Variations in Probability Judgment Accuracy: Beyond General Knowledge Overconfidence?," Organizational Behavior and Human Decision Processes, Elsevier, vol. 74(2), pages 89-117, May.
    11. Joseph Henrich & Steve J. Heine & Ara Norenzayan, 2010. "The Weirdest People in the World?," RatSWD Working Papers 139, German Data Forum (RatSWD).
    12. Elke U. Weber & Daniel R. Ames & Ann-Renee Blais, 2004. "How Do I Choose Thee? Let me Count the Ways': A Textual Analysis of Similarities and Differences in Modes of Decision-making in China and the United States," Management and Organization Review, International Association of Chinese Management Research, vol. 1(1), pages 87-118, June.
    13. Scott Atran & Robert Axelrod, 2008. "Reframing Sacred Values," Post-Print ijn_00505185, HAL.
    14. Yates, J. Frank & Zhu, Ying & Ronis, David L. & Wang, Deng-Feng & Shinotsuka, Hiromi & Toda, Masanao, 1989. "Probability judgment accuracy: China, Japan, and the United States," Organizational Behavior and Human Decision Processes, Elsevier, vol. 43(2), pages 145-171, April.
    15. Chu, P. C. & Spires, Eric E. & Sueyoshi, Toshiyuki, 1999. "Cross-Cultural Differences in Choice Behavior and Use of Decision Aids: A Comparison of Japan and the United States," Organizational Behavior and Human Decision Processes, Elsevier, vol. 77(2), pages 147-170, February.
    16. Savani, Krishna & Wadhwa, Monica & Uchida, Yukiko & Ding, Yu & Naidu, N.V.R., 2015. "When norms loom larger than the self: Susceptibility of preference–choice consistency to normative influence across cultures," Organizational Behavior and Human Decision Processes, Elsevier, vol. 129(C), pages 70-79.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yetunde Anibaba & Godbless Akaighe, 2018. "Dynamics of Decision Making in Cross-Functional Teams," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 12(4), December.
    2. Kawamura, Tetsuya & Mori, Tomoharu & Motonishi, Taizo & Ogawa, Kazuhito, 2021. "Is Financial Literacy Dangerous? Financial Literacy, Behavioral Factors, and Financial Choices of Households," Journal of the Japanese and International Economies, Elsevier, vol. 60(C).
    3. Vida Davidaviciene & Khaled Al Majzoub, 2022. "The Effect of Cultural Intelligence, Conflict, and Transformational Leadership on Decision-Making Processes in Virtual Teams," Social Sciences, MDPI, vol. 11(2), pages 1-16, February.
    4. Narda R. Quigley & Pankaj C. Patel, 2022. "Reexamining the gender gap in microlending funding decisions: the role of borrower culture," Small Business Economics, Springer, vol. 59(4), pages 1661-1685, December.
    5. Mamman, Aminu & Bawole, Justice & Agbebi, Motolani & Alhassan, Abdul-Razak, 2019. "SME policy formulation and implementation in Africa: Unpacking assumptions as opportunity for research direction," Journal of Business Research, Elsevier, vol. 97(C), pages 304-315.
    6. Wang, Zhan & McNally, Regina & Lenihan, Helena, 2019. "The role of social capital and culture on social decision-making constraints: A multilevel investigation," European Management Journal, Elsevier, vol. 37(2), pages 222-232.
    7. Volkan Ezcan & Jack Steven Goulding, 2022. "Offsite Sustainability—Disentangling the Rhetoric through Informed Mindset Change," Sustainability, MDPI, vol. 14(8), pages 1-27, April.
    8. Shengqin Zheng & Ye Cheng & Yingjie Ju, 2019. "Understanding the Intention and Behavior of Renting Houses among the Young Generation: Evidence from Jinan, China," Sustainability, MDPI, vol. 11(6), pages 1-18, March.
    9. Aaron Saiewitz & Elaine (Ying) Wang, 2020. "Using Cultural Mindsets to Reduce Cross‐National Auditor Judgment Differences," Contemporary Accounting Research, John Wiley & Sons, vol. 37(3), pages 1854-1881, September.
    10. Shepherd, Dean A. & Breugst, Nicola & Patzelt, Holger, 2023. "A founding-team model of creating a venture's culture," Journal of Business Venturing, Elsevier, vol. 38(2).
    11. Kong, Juan & Lou, Chen, 2023. "Do cultural orientations moderate the effect of online review features on review helpfulness? A case study of online movie reviews," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    12. Bornhausen, Anna Maria, 2022. "Conceptualizing cross-country analyses of family firms: A systematic review and future research agenda," International Business Review, Elsevier, vol. 31(4).
    13. Durach, Christian F. & Wiengarten, Frank, 2020. "Supply chain integration and national collectivism," International Journal of Production Economics, Elsevier, vol. 224(C).
    14. Florian Hanke & Jens Lowitzsch, 2020. "Empowering Vulnerable Consumers to Join Renewable Energy Communities—Towards an Inclusive Design of the Clean Energy Package," Energies, MDPI, vol. 13(7), pages 1-27, April.
    15. Marco Castellani & Linda Alengoz & Niccolò Casnici & Flaminio Squazzoni, 2022. "A role-game laboratory experiment on the influence of country prospects reports on investment decisions in two artificial organizational settings," Mind & Society: Cognitive Studies in Economics and Social Sciences, Springer;Fondazione Rosselli, vol. 21(1), pages 121-149, June.
    16. Apergis, Nicholas & Hayat, Tasawar & Kadasah, Nasser A., 2019. "Subjective well-being in housing purchasing: Evidence with survey data from the U.K. housing residential market," The Quarterly Review of Economics and Finance, Elsevier, vol. 74(C), pages 328-335.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Di Guida, Sibilla & Erev, Ido & Marchiori, Davide, 2015. "Cross cultural differences in decisions from experience: Evidence from Denmark, Israel, and Taiwan," Journal of Economic Psychology, Elsevier, vol. 49(C), pages 47-58.
    2. Jonathan E. Ingersoll Jr. & Lawrence J. Jin, 2014. "Realization Utility with Reference-Dependent Preferences," Papers 1408.2859, arXiv.org.
    3. Michael Muthukrishna & Joseph Henrich & Wataru Toyokawa & Takeshi Hamamura & Tatsuya Kameda & Steven J Heine, 2018. "Overconfidence is universal? Elicitation of Genuine Overconfidence (EGO) procedure reveals systematic differences across domain, task knowledge, and incentives in four populations," PLOS ONE, Public Library of Science, vol. 13(8), pages 1-30, August.
    4. Jakusch, Sven Thorsten & Meyer, Steffen & Hackethal, Andreas, 2019. "Taming models of prospect theory in the wild? Estimation of Vlcek and Hens (2011)," SAFE Working Paper Series 146, Leibniz Institute for Financial Research SAFE, revised 2019.
    5. Bernasconi, Michele & Corazzini, Luca & Seri, Raffaello, 2014. "Reference dependent preferences, hedonic adaptation and tax evasion: Does the tax burden matter?," Journal of Economic Psychology, Elsevier, vol. 40(C), pages 103-118.
    6. Ang, James S. & Ismail, Ahmad K., 2015. "What premiums do target shareholders expect? Explaining negative returns upon offer announcements," Journal of Corporate Finance, Elsevier, vol. 30(C), pages 245-256.
    7. Yong, Kevyn & Mannucci, Pier Vittorio & Lander, Michel W., 2020. "Fostering creativity across countries: The moderating effect of cultural bundles on creativity," Organizational Behavior and Human Decision Processes, Elsevier, vol. 157(C), pages 1-45.
    8. Fongoni, Marco & Dickson, Alex, 2015. "A Theory of Wage Setting Behavior," SIRE Discussion Papers 2015-57, Scottish Institute for Research in Economics (SIRE).
    9. Lee, K.M.C. & Kraeussl, R.G.W. & Paas, L.J., 2010. "Personality and investment: Personality differences affect investors' adaptation to losses," Serie Research Memoranda 0007, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    10. Lou, Youcheng & Strub, Moris S. & Li, Duan & Wang, Shouyang, 2021. "The impact of a reference point determined by social comparison on wealth growth and inequality," Journal of Economic Dynamics and Control, Elsevier, vol. 127(C).
    11. repec:cup:judgdm:v:8:y:2013:i:2:p:150-160 is not listed on IDEAS
    12. Manel Baucells & Martin Weber & Frank Welfens, 2011. "Reference-Point Formation and Updating," Management Science, INFORMS, vol. 57(3), pages 506-519, March.
    13. Zhang, nan & Qin, Botao, 2020. "Reference point adaptation and air quality – Experimental evidence with anti-PM 2.5 facemasks from China," MPRA Paper 102935, University Library of Munich, Germany.
    14. He, Wen & Li, Yan, 2020. "Comparing with the average: Reference points and market reactions to above-average earnings surprises," Journal of Banking & Finance, Elsevier, vol. 117(C).
    15. Cédric Gutierrez & Tomasz Obloj & Douglas H. Frank, 2021. "Better to have led and lost than never to have led at all? Lost leadership and effort provision in dynamic tournaments," Strategic Management Journal, Wiley Blackwell, vol. 42(4), pages 774-801, April.
    16. Rieger, Marc O. & Wang, Mei & Phan, Thuy Chung & Gong, Yujing, 2022. "Trend following or reversal: Does culture affect predictions and trading behavior?," Global Finance Journal, Elsevier, vol. 54(C).
    17. Arkes, Hal & Hirshleifer, David & Jiang, Danling & Lim, Sonya, 2007. "Prospect Theory and Reference Point Adaptation: Evidence from the US, China, and Korea," MPRA Paper 4009, University Library of Munich, Germany.
    18. Fongoni, Marco & Dickson, Alex, 2015. "A Theory of Wage Setting Behavior," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN 2015-57, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    19. William M. Hedgcock & Raghunath Singh Rao & Haipeng (Allan) Chen, 2016. "Choosing to Choose: The Effects of Decoys and Prior Choice on Deferral," Management Science, INFORMS, vol. 62(10), pages 2952-2976, October.
    20. Moris S. Strub & Duan Li, 2020. "Failing to Foresee the Updating of the Reference Point Leads to Time-Inconsistent Investment," Operations Research, INFORMS, vol. 68(1), pages 199-213, January.
    21. Hong Chao & Chun-Yu Ho & Xiangdong Qin, 2017. "Risk taking after absolute and relative wealth changes: The role of reference point adaptation," Journal of Risk and Uncertainty, Springer, vol. 54(2), pages 157-186, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jobhdp:v:136:y:2016:i:c:p:106-118. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/obhdp .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.