The Confucius connection: From cultural roots to economic growth

Hofstede, Geert; Bond, Michael Harris

doi:10.1016/0090-2616(88)90009-5

Cited by 3,214 publications

(2,188 citation statements)

References 4 publications

Supporting

Mentioning

1,973

Contrasting

Unclassified

Order By: Relevance

“…Risk aversion, uncertainty aversion and time discounting were tested for correlations with Hofstede's four original cultural dimensions, plus long-term versus short-term orientation, using Hofstede's most recent data matrix. Two of the cultural dimensions identified by Hofstede (1981Hofstede ( | 2001 and Hofstede and Bond (1988) were predicted to be particularly relevant. First, individualism-collectivism (IDV): Weber and Hsee (1998) argue that collectivism acts as mutual insurance against losses, such that members of a collectivist culture, like China, perceive the risk of risky options to be smaller than members of an individualistic culture, like the United States.…”

Section: Discussionmentioning

confidence: 99%

The economic psychology of incentives: An international study of top managers

Pepper

Gore

2014

Journal of World Business

View full text Add to dashboard Cite

The world-wide inflation in executive compensation in recent years has been accompanied by an increase in the prevalence of long-term incentives. This article demonstrates how the subjectively perceived value of long-term incentives is affected by risk aversion, uncertainty aversion, and time preferences. Based on a unique empirical study which involved collecting primary data on executive preferences from around the world, and using a theoretical framework which draws on behavioral agency theory, we conclude that, while long-term incentives are perceived by executives to be effective, they are not in fact an efficient form of reward. This outcome is not significantly affected by cross-cultural differences. We conjecture that boards of directors, acting on behalf of shareholders, increase the size of longterm incentive awards in order to compensate executives for the perceived loss of value when compared with less risky, more certain and more immediate forms of reward.

show abstract

Section: Discussionmentioning

confidence: 99%

The economic psychology of incentives: An international study of top managers

Pepper

Gore

2014

Journal of World Business

View full text Add to dashboard Cite

show abstract

“…Hofstede (1991) finds that the Long Term Orientation Score is typically high in East Asia, especially in Confucian cultures. It implies that people in such cultures tend to put higher value on the future, and they are more likely to be patient.…”

Section: Relationship Between Culture and Time Preferencesmentioning

confidence: 99%

“…• Cultural factors as captured by the Hofstede cultural dimensions (Hofstede, 1991) contribute significantly to the variation of time discounting. In particular, high levels of Uncertainty Avoidance are associated with stronger hyperbolic discounting, whereas higher degree of Individualism and Long Term Orientation predict a stronger tendency to wait for larger payoffs.…”

Section: Introductionmentioning

confidence: 99%

How Time Preferences Differ: Evidence from 45 Countries

2010

View full text Add to dashboard Cite

We present results from the first large-scale international survey on time preference, conducted in 53 countries. All countries exhibit hyperbolic discounting patterns, i.e., the immediate future is discounted more than far future. We also observe higher heterogeneity for shorter time horizons, consistent with the pattern reviewed by Frederick, Loewenstein, and O'Donoghue (2002). Cultural factors as captured by the Hofstede cultural dimensions (Hofstede, 1991) contribute significantly to the variation of time discounting, even after controlling for economic factors, such as GDP, inflation rate and growth rate. In particular, higher levels of Uncertainty Avoidance are associated with stronger hyperbolic discounting, whereas higher degrees of Individualism and Long Term Orientation predict stronger tendency to wait for larger payoffs. We also find the waiting tendency is correlated with innovation, environmental protection, crediting rating, and body mass index at country level after controlling for county wealth. These results help us to enhance the understanding of differences across financial markets and economic behavior worldwide.

show abstract

“…In the culture characterised by hierarchical, compliance-based relationships like South Korea (Hofstede and Bond, 1988), the common belief is that accountability systems are operationalised in terms of identification of culprits and corresponding threats of disciplinary or criminal proceedings. These beliefs rest on assumptions that remedial and disciplinary actions will produce improvements by increasing the motivation for safe practice (Woods, 2005).…”

Section: Balanced Representation Of Human and Systems Factorsmentioning

confidence: 99%

“…This view focuses mainly on identifying human errors and violations, and blaming people concerned. Many Far East countries including South Korea have the culture that is characterised by ordering relationships by status and a strong sense of shame (Hofstede and Bond, 1988). In such culture that relies predominantly on hierarchical, compliance-based relationships, blame culture is more likely to occur (Khatri et al, 2009) as demonstrated in the aftermath of the South Korea ferry accident.…”

Section: Introductionmentioning

confidence: 99%