EconPapers    
Economics at your fingertips  
 

National culture and incentives: Are incentive practices always good?

Nicholas R. Prince, J. Bruce Prince and Rüediger Kabst

Journal of World Business, 2020, vol. 55, issue 3

Abstract: This study evaluates national culture’s influence on the incentive practice-firm performance relationship. Hofstede’s work (1993) and institutional theory (North, 1990) suggest national culture will moderate incentive effectiveness, while others suggest it has minimal impact (Gerhart & Fang, 2005). We find performance orientation (PO), in-group collectivism (I-GC) and uncertainty avoidance (UA) dimensions explain strength and direction of incentive-performance relationships. Profit-sharing―performance relationships are favorably supported by cultures with high PO, high I-GC, and low UA; however, the individual-bonus―performance relationship is enhanced by the near-opposite culture profile. There was no evidence that the team-bonus―outcome relationship is influenced by national culture.

Keywords: Comparative HRM; National culture; Incentives; Profit sharing; Team bonus; Individual bonus (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1090951620300031
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:worbus:v:55:y:2020:i:3:s1090951620300031

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/620401/bibliographic
http://www.elsevier. ... 620401/bibliographic

DOI: 10.1016/j.jwb.2020.101075

Access Statistics for this article

Journal of World Business is currently edited by David Collings and Jonathan Doh

More articles in Journal of World Business from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2021-06-30
Handle: RePEc:eee:worbus:v:55:y:2020:i:3:s1090951620300031