The paper provides a state-of-the-art review of several innovative advances in culture and international business (IB) to stimulate new avenues for future research. We first review the issues surrounding cultural convergence and divergence, and the processes underlying cultural changes. We then examine novel constructs for characterizing cultures, and how to enhance the precision of cultural models by pinpointing when cultural effects are important. Finally, we examine the usefulness of experimental methods, which are rarely used by IB researchers. Implications of these path-breaking approaches for future research on culture and IB are discussed. Journal of International Business Studies (2005) 36, 357–378. doi:10.1057/palgrave.jibs.8400150

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spectively. Data in this paper were originally collected for a cross-cultural experimental study, reported in Buchan et al. (1998). The authors thank Eric Johnson for his help and support, as well as Bingfu Chen, Wujin Chu, and Hotatka Katahira, and their research assistants, for their help in collecting the data for this research. 1 This game is similar to the trust game in David Kreps (1990) and the peasant-dictator game in John Van Huyck et al. (1995). All have the same prediction that play should end immediately, even though strict Pareto improvements to payoffs can be found in later stages. For a detailed comparison of the games see Berg et al. (1995).

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Globalization magnifies the problems that affect all people and that require large-scale human cooperation, for example, the overharvesting of natural resources and human-induced global warming. However, what does globalization imply for the cooperation needed to address such global social dilemmas? Two competing hypotheses are offered. One hypothesis is that globalization prompts reactionary movements that reinforce parochial distinctions among people. Large-scale cooperation then focuses on favoring one's own ethnic, racial, or language group. The alternative hypothesis suggests that globalization strengthens cosmopolitan attitudes by weakening the relevance of ethnicity, locality, or nationhood as sources of identification. In essence, globalization, the increasing interconnectedness of people worldwide, broadens the group boundaries within which individuals perceive they belong. We test these hypotheses by measuring globalization at both the country and individual levels and analyzing the relationship between globalization and individual cooperation with distal others in multilevel sequential cooperation experiments in which players can contribute to individual, local, and/or global accounts. Our samples were drawn from the general populations of the United States, Italy, Russia, Argentina, South Africa, and Iran. We find that as country and individual levels of globalization increase, so too does individual cooperation at the global level vis-à -vis the local level. In essence, ''globalized'' individuals draw broader group boundaries than others, eschewing parochial motivations in favor of cosmopolitan ones. Globalization may thus be fundamental in shaping contemporary large-scale cooperation and may be a positive force toward the provision of global public goods. economic experiments ͉ social dilemmas ͉ public goods provision ͉ cosmopolitanism ͉ parochialism

This research examines the question of whether the psychology of social identity can be extended to enhance cooperative motives in the context of very large, global collectives.Our data come from a multi-national study of choice behavior in a multi-level public goods dilemma conducted among samples drawn from the general populations of the United States, Italy, Russia, Argentina, South Africa and Iran. Results demonstrate that an inclusive social identification with the world community is a meaningful psychological construct that plays a role in motivating cooperation that transcends parochial interests. Self-reported identification with the world as a whole predicts behavioral contributions to a global public good above and beyond expectations about what other participants are likely to contribute. Furthermore, global social identification is conceptually distinct from general attitudes about global issues, with unique effects on cooperative behavior.

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