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GLOBE practices and values: A case of diminishing marginal utility?

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  • Paul Brewer

    (UQ Business School, University of Queensland, Brisbane, Australia)

  • Sunil Venaik

    (UQ Business School, University of Queensland, Brisbane, Australia)

Abstract

The GLOBE study of national cultures identified nine dimensions of culture. These nine dimensions were measured in the form of societal practices (as things are) and societal values (as things should be). The correlations between practices and values for societies, surprisingly, were found to be significantly negative for seven dimensions. Apparently, people's values are contrary to their practices. A note, which appeared in a recent issue of this journal, proposes that these anomalous correlations result from diminishing marginal utility. The note argues that marginal utility theory applies to cultural dimensions, and that the GLOBE values measure societies’ marginal preferences for most of the dimensions, rather than total preference weights. Through close analysis of the questionnaire items used by the GLOBE team, we show that this is not the case. We demonstrate that the GLOBE questions, as asked, do not elicit marginal preferences. In fact they elicit values, as claimed by GLOBE, but recognizing that values may well be shaped, in part, by existing practices. We call for further study into the GLOBE scores, as it is likely that different explanations apply to practices/values relationships across different dimensions.

Suggested Citation

  • Paul Brewer & Sunil Venaik, 2010. "GLOBE practices and values: A case of diminishing marginal utility?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(8), pages 1316-1324, October.
  • Handle: RePEc:pal:jintbs:v:41:y:2010:i:8:p:1316-1324
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    4. Rimsha Makeel & Jawaria Ashraf & Fitri Rini Ariyesti & Sumran Ali, 2022. "The influence of social supportive culture and performance-based culture on social enterprise performance: the mediation role of Social entrepreneurial orientation," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 12(1), pages 205-218, December.
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    7. Letizia Alvino & Efthymios Constantinides & Massimo Franco, 2018. "Towards a Better Understanding of Consumer Behavior: Marginal Utility as a Parameter in Neuromarketing Research," International Journal of Marketing Studies, Canadian Center of Science and Education, vol. 10(1), pages 90-106, March.
    8. Mackey, Jeremy D., 2022. "The effect of cultural values on the strength of the relationship between interpersonal and organizational workplace deviance," Journal of Business Research, Elsevier, vol. 149(C), pages 760-771.
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    15. Aïssaoui, Rachida & Fabian, Frances, 2015. "The French Paradox: Implications for Variations in Global Convergence," Journal of International Management, Elsevier, vol. 21(1), pages 31-48.
    16. Calza, Francesco & Cannavale, Chiara & Zohoorian Nadali, Iman, 2020. "How do cultural values influence entrepreneurial behavior of nations? A behavioral reasoning approach," International Business Review, Elsevier, vol. 29(5).
    17. Stathopoulou, Anastasia & Balabanis, George, 2019. "The effect of cultural value orientation on consumers' perceptions of luxury value and proclivity for luxury consumption," Journal of Business Research, Elsevier, vol. 102(C), pages 298-312.
    18. Martin Hoegl & K. Praveen Parboteeah & Miriam Muethel, 2012. "Cross-National Differences in Managers’ Creativity Promoting Values," Management International Review, Springer, vol. 52(4), pages 565-595, August.
    19. Alexander, Katherine C. & Mackey, Jeremy D. & Maher, Liam P. & McAllister, Charn P. & Ellen, B. Parker, 2024. "An implicit leadership theory examination of cultural values as moderators of the relationship between destructive leadership and followers’ task performance," International Business Review, Elsevier, vol. 33(3).
    20. Wijayana, Singgih & Gray, Sidney J., 2018. "Capital market consequences of cultural influences on earnings: The case of cross-listed firms in the U.S. stock market," International Review of Financial Analysis, Elsevier, vol. 57(C), pages 134-147.
    21. Hauff, Sven & Richter, Nicole Franziska & Tressin, Tabea, 2015. "Situational job characteristics and job satisfaction: The moderating role of national culture," International Business Review, Elsevier, vol. 24(4), pages 710-723.
    22. Thomas Rockstuhl & Dongyuan Wu & James H. Dulebohn & Chenwei Liao & Julia E. Hoch, 2023. "Cultural congruence or compensation? A meta-analytic test of transformational and transactional leadership effects across cultures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(3), pages 476-504, April.
    23. Cline, Brandon N. & Williamson, Claudia R., 2017. "Individualism, democracy, and contract enforcement," Journal of Corporate Finance, Elsevier, vol. 46(C), pages 284-306.
    24. Diana M. Hechavarría & Steven A. Brieger, 2022. "Practice rather than preach: cultural practices and female social entrepreneurship," Small Business Economics, Springer, vol. 58(2), pages 1131-1151, February.
    25. Alvino, Letizia & Constantinides, Efthymios & Franco, Massimo, 2018. "Towards a better understanding of consumer behavior : Marginal utility as a parameter in neuromarketing research," Other publications TiSEM b3e61951-9032-4cb4-b075-1, Tilburg University, School of Economics and Management.

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