Abstract
The financial performance of European and Asian work units of one multinational company is examined as a function of the congruence between management practices and national culture. Using Hofstede's five national culture dimensions and analogous management practices, we find that work unit financial performance is higher when management practices in the work unit are congruent with the national culture.
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*Karen Newman is Professor of Management at Georgetown University's School of Business. Her research interests include organizational change in Central and East Europe, ethical work climates, high performance work groups, and managerial careers. Her work has been published in such journals as the Academy of Management Journal, Industrial Relations, Public Administration Review, and Human Relations. Professor Newman earned her Ph.D. from the University of Chicago, Graduate School of Business. Stanley Nollen is Professor of Management at the Georgetown University School of Business. His research includes work on the problems and prospects for business in emerging market economies of Central Europe and Asia: high performance work groups; and studies of the process of forming international trade policy in the U.S. Congress. His articles have appeared in Industrial Relations, International Organization, Human Relations, the Journal of Labor Research, and JIBS.
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Newman, K., Nollen, S. Culture and Congruence: The Fit Between Management Practices and National Culture. J Int Bus Stud 27, 753–779 (1996). https://doi.org/10.1057/palgrave.jibs.8490152
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DOI: https://doi.org/10.1057/palgrave.jibs.8490152