This research introduces and demonstrates the application of Latent Class Modeling (LCM) in an important management setting. The study examines the grouping of nations and reviews a number of the key approaches to grouping nations by culture. An alternative approach to grouping nations is proposed, based on workplace attitudes and values, and using LCM. Results suggest that groups of nations can be identified using LCM and that this approach demonstrates that group membership may, in many instances, span historical, language or geographic differences. Managerial implications of the findings are discussed, along with recommendations for future research.
Get full access to this article
View all access options for this article.
References
1.
Adler, N. J.1991. International dimensions of organizational behavior (2nd ed.). Belmont, CA: Wadsworth.
2.
Akaike, H.1974. A new look at statistical model identification. IEEE Transaction on Automatic Control, 19: 716–727.
3.
Akaike, H.1987. Factor analysis and AIC. Psychometrika, 52: 317–332.
4.
Badawy, M. R. 1979. Managerial attitudes and need orientations of Mid-Eastern executives: An empirical cross-cultural analysis. Paper presented at the annual meeting of the Academy of ManagementAtlanta, August, 1979.
5.
Bass, B. M.1990. Bass and Stogdill’s handbook of leadership: Theory, research and managerial applications (3rd ed.). New York: Free Press.
6.
Business Week. 1994. Twenty-first century capitalism. Special issue. November 18.
7.
Carpano, C., Chrisman, J. J., & Roth, K.1994. International strategy and environment: An assessment of the performance relationship. Journal of International Business Studies, 25 (3): 63–656.
8.
Child, J.1981. Cultural contingency and capitalism in the cross-national study of organizations. In L. L. Cummings & B. M. Staw (Eds.), Research in organizational behavior, vol. 3: 303–356. Greenwich: CT: JAI Press.
9.
Clogg, C. C.1977. Unrestricted and restricted maximum likelihood latent structure analysis: A manual for users. Working Paper no. 1977-09, the Population Issues Research Office, Pennsylvania State University.
10.
Daniels, J. D., & Radebaugh, L. H.1993. International business: Environments and operations (6th ed.). New York: Addison-Wesley.
11.
Dayton, C. M., & MacReady, G. B.1976. A probabilistic model for the validation of behavioral hierarchies. Psychometrika, 41: 189–204.
12.
Deresky, H.1994. International management: Managing across borders and cultures. New York: HarperCollins.
13.
Ghoshal, S., & Bartlett, C. A.1990. The multinational corporation as an interorganizational network. Academy of Management Review, 15: 603–625.
14.
Goodman, L. A.1974a. Exploratory latent structure analysis using both identifiable and unidentifiable models. Biometrica, 61: 215–231.
15.
Goodman. L. A.1974b. The analysis of qualitative variables when some of the variables are unobservable. Part I: A modified latent structure approach. American Journal of Sociology, 79: 1179–1259.
16.
Goodman, L. A.1975. A new model for scaling response patterns: An application of the quasi-independence concept. Journal of American Statistical Association, 70: 755–768.
17.
Griffeth, R. W., Hom, P. W., DeNisi, A., & Kirchner, W.1980. A multivariate multinational comparison of managerial attitudes. Proceedings of the Academy of Management: 63–67. Detroit: Academy of Management.
18.
Gupta, A. K., & Govindarajan, V.1991. Knowledge flows and the structure of control within multinational corporations. Academy of Management Review, 16: 768–792.
19.
Haire, M., Ghiselli, E. E., & Porter, L. W.1966. Managerial thinking: An international study. New York: Wiley.
20.
Hartigan, J. A.1975. Clustering algorithms. New York: Wiley.
21.
Heinen, T.1992. Latent class and discrete latent trait models: Smilarities and differences. Thousand Oaks, CA: Sage.
22.
Hofstede, G.1976. Nationality and espoused values of managers. Journal of Applied Psychology, 61: 148–155.
23.
Hofstede, G.1980. Motivation, leadership and organizations: Do American theories apply abroad?Organizational Dynamics, Summer: 42–63.
24.
Hofstede, G.1984. Culture’s consequences: International differences in work related values. Beverly Hills, CA: Sage.
25.
Hofstede, G., & Bond, M. H.1988. Confucius and economic growth: New trends in culture’s consequences. Organizational Dynamics, 16 (4): 4–21.
26.
Jöreskog, K., & Sörbom, D.1993. LISREL 8: Structural equation modeling with the SIMPLIS command language. London: Lawrence Erlbaum.
27.
Kale, S. H., & Lenartowicz, T.1994. Barriers to European unification: A cultural perspective. Working paper no. D-94-13, Center for International Business Research, The University of South Carolina, College of Business Administration Division of Research.
28.
Laurent, A.1983. The cultural diversity of Western conceptions of management. International Studies of Management and Organization, 13 (1–2): 75–96.
29.
MacReady, G. B.1982. The use of latent class models for assessing prerequisite relations and transference among traits. Psychometrika, 47: 477–488.
30.
McCutcheon1987. Latent class analysis. Newbury Park, CA: Sage.
31.
Porter, M. E.1990. The competitive advantage of nations. New York: Free Press.
32.
Ricks, D. A., Toyne, B., & Martinez, Z.1990. Recent developments in international management research. Journal of Management, 16: 219–253.
33.
Redding, G.1976. Some perceptions of psychological needs among managers in South-East Asia. In Y. H. Poortinga (Ed.), Basic problems in cross-cultural psychology:338–343. Amsterdam, Netherlands: Swets and Zeitlinger.
34.
Ronen, S., & Kraut, A. I.1977. Similarities among countries based on employee work values and attitudes. Columbia Journal of World Business, 12 (2): 89–96.
35.
Ronen, S., & Shenkar, O.1985. Clustering countries on attitudinal dimensions: A review and synthesis. Academy of Management Review, 10: 435–454.
36.
Schein, E.1985. Organizational culture and leadership (2nd ed.). San Francisco: Jossey-Bass.
37.
Sirota, D., & Greenwood, J. M.1971. Understanding your overseas workforce. Harvard Business Review, 49 (1): 53–60.
