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National Culture

Uncertainty Avoidance

Measures the ability of a society to deal with the inherent ambiguities and complexities of life.

Cultures that are high in uncertainty avoidance rely

heavily on written rules and regulations, embrace formal structures as a way of coping with uncertainty, and have little tolerance for ambiguity or change.

negative influence on corporate risk-taking and corporate proactive behavior.

Individualism

Describes the relationship that exists between the individual and the collectivity in a culture.

Societies high in individualism value freedom and autonomy, view results as coming from individual (and not group) achievements and place the interests of the individual over the interests of the group.

No significant influence on corporate risk-taking and Negative influence on corporate proactive behavior.

positive influence on corporate risk-taking and negative influence on corporate proactive behavior.

Power distance

is a measure of the interpersonal power or influence between the boss and the subordinate as perceived by the subordinate.

High-power distance cultures exhibit an unequal distribution of power, strong hierarchies and control mechanisms, less communication among organizational levels, and an emphasis on subordinates being deferential and obedient to those in positions of power

negative influence on corporate risk-taking and corporate proactive behavior.

Masculinity

Is concerned with the level of assertiveness and self-confidence present in a culture.

Highly masculine cultures place a high emphasis on assertive and ostentatious behavior, material goods and prestige are highly sought after, individuals tend to exhibit a high need for achievement, and organizations are more willing to engage in competitive behaviors.

no significant influence on corporate risk taking and negative influence on corporate proactive behavior.

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© Chair for Strategy and Organization, Technical University of Munich

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