Individualism-collectivism cultural differences in performance feedback theory. Issue 3 (18th June 2020)

• Record Type: Journal Article
• Authors: Rhee, Mooweon; Alexandra, Valerie; Powell, K. Skylar
• Is Part Of: Cross cultural & strategic management. Volume 27:Issue 3(2020)
• Page Start: 343
• Page End: 364
• Publication Date: 2020-06-18
• Subjects: Performance feedback theory -- Individualism-collectivism -- Cross-cultural strategic management -- Cognitive processes; Management -- Cross-cultural studies -- Periodicals; Management -- Social aspects -- Periodicals; International business enterprises -- Management -- Social aspects -- Periodicals; Diversity in the workplace -- Periodicals; 658.4
• DOI: 10.1108/CCSM-05-2019-0100
• Languages: English
• ISSNs: 2059-5794

Abstract

Abstract : Purpose: Performance feedback theory (PFT) has informed analyses in numerous national contexts and has been used to explain various business and management activities of firms. Stemming from behavioral theory and grounded in a cognitive perspective, which views organizational actions as being the results of decisions produced by groups of individual decision-makers, PFT research has mostly assumed the universal nature of cognition and decision-making processes. However, PFT also presumes that individual decision-makers bring with them different backgrounds and experiences. Hence, this paper offers propositions on how cultural differences in individualism-collectivism influence the major components of PFT, including the formation and revision of performance goals (aspiration levels), and search behaviors and risk preferences in response to gaps between goals and actual performance. Implications for future research and practice are discussed. Design/methodology/approach: This paper offers theoretical propositions for the above purpose. Findings: This is not an empirical analysis. Originality/value: By integrating the individualism-collectivism differences framework into the PFT model, the authors answer previous calls to integrate concepts and frameworks from other theories into PFT while considering the role of cultural differences in aspiration-consequence relationships. Additionally, much of PFT research has focused on outcomes, while actual internal processes have remained unobserved. By focusing on how cultural differences influence various PFT processes, this conceptual analysis sheds light on the unobserved bounds of decision-makers' cognitions.