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Interpreting and responding to strategic issues: the impact of national culture

Author: Schneider, Susan C. ; De Meyer, ArnoudINSEAD Area: Technology and Operations Management ; Organisational Behaviour Series: Working Paper ; 89/61/TM/OB Publisher: Fontainebleau : INSEAD, 1989.Language: EnglishDescription: 21 p.Type of document: INSEAD Working Paper Online Access: Click here Abstract: Perceptions of environmental uncertainty and organizational control influence strategic behaviour. As national culture influences these perceptions, we expect to find cultural differences in interpretation and response to strategic issues. Executive and MBA participants in a European business school read a case describing the potential repeal of the McFadden Act (deregulating interstate banking in the US) and completed questionnaires rating interpretations and responses to that issue. National culture was found to influence interpretation and responses. In particular, Latin European managers, when compared with other managers, were more likely to interpret the issue as a crisis and as a threat. Latin European were also more likely to recommend proactive behaviour than were their counterparts. This study indicates that different cultures are likely to interpret and respond to the same strategic issue in different ways..
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Perceptions of environmental uncertainty and organizational control influence strategic behaviour. As national culture influences these perceptions, we expect to find cultural differences in interpretation and response to strategic issues. Executive and MBA participants in a European business school read a case describing the potential repeal of the McFadden Act (deregulating interstate banking in the US) and completed questionnaires rating interpretations and responses to that issue. National culture was found to influence interpretation and responses. In particular, Latin European managers, when compared with other managers, were more likely to interpret the issue as a crisis and as a threat. Latin European were also more likely to recommend proactive behaviour than were their counterparts. This study indicates that different cultures are likely to interpret and respond to the same strategic issue in different ways..

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