The awareness of quality issues increased dramatically in the US during the 1980s as many companies began to embrace quality as a management concept (Easton, 1993). Not surprisingly, quality and its management have been identified as key characteristics in determining a company's ability to compete and its long-term opportunity for success. A linkage between quality, competitiveness and strategy was suggested by Belohlav (1993), who argued that the focus of strategy shifted from an external emphasis (market attractiveness) to an internal one (company strength) in the 1980s. Porter's (1985) work on competitive strategy was very instrumental in this shift. The generic strategies (cost The rationalist school posits that as globalization gains momentum, management systems will converge, implying that culture plays a limited role. In contrast, the culturalist school suggests that managerial practices are an extension of a given country's traditions and are unique to that country. While the empirical evidence is mixed, the results of this article provide additional evidence for the importance of cultural variables in the context of a cross-national study of managerial perceptions of quality, utilizing data from the USA, Japan, Hong Kong and Taiwan. The study includes the societal context in the analysis of organizations in cross-national research, and investigates whether cultural variables and company size could explain the differences in managerial perceptions of quality. Model coefficients are estimated by multinomial logistic regression analysis. The findings indicate that both organizational and cultural variables are important in explaining the differences in managerial perceptions of quality. • competitive advantage • cross cultural perceptions • multinomial logistic regression • organizational-and societal-level analysis • quality improvement