Culture, Values and Culture, Values and Innovation:Innovation:First Steps of a Meta-First Steps of a Meta-AnalysisAnalysis

Peter Schmidt (University of Peter Schmidt (University of Giessen and HSE Giessen and HSE Moscow)Moscow)

Florian Zercher (University of Florian Zercher (University of Gießen)Gießen)

Table of ContentsTable of Contents1.1. IntroductionIntroduction2.2. Steps of the Meta-AnalysisSteps of the Meta-Analysis

1.1. Problem Formulation Problem Formulation 2.2. Data CollectionData Collection3.3. Data EvaluationData Evaluation4.4. Computation of Effect SizesComputation of Effect Sizes

3.3. Summary and unsolved ProblemsSummary and unsolved Problems

IntroductionIntroductionThis is a critical summary review of the debate about the Global This is a critical summary review of the debate about the Global Leadership and Organizational Behavior Effectiveness (GLOBE) Leadership and Organizational Behavior Effectiveness (GLOBE) study in JIBS and other journals between November 2006 and study in JIBS and other journals between November 2006 and the present issue. the present issue. Several contributors did not realize that GLOBE used three Several contributors did not realize that GLOBE used three essential constructs taken from my publications in a sense essential constructs taken from my publications in a sense entirely different from mine: values, practices, and entirely different from mine: values, practices, and

organizationalorganizationalculture. Not recognizing the ensuing confusion, they had no culture. Not recognizing the ensuing confusion, they had no answer for the question in my 2006 review: what did GLOBE answer for the question in my 2006 review: what did GLOBE really measure? really measure?

IntroductionIntroduction

If you do not know what you are talking about, you can If you do not know what you are talking about, you can continuecontinue

arguing for ever. Beyond the fuzziness of what is arguing for ever. Beyond the fuzziness of what is measured, themeasured, the

debate leaves us with an even more fundamental debate leaves us with an even more fundamental question: question:

what is the use of the GLOBE dimensions?what is the use of the GLOBE dimensions?

Hofstede, Geert (2010): Hofstede, Geert (2010): The GLOBE debate: Back to relevance.The GLOBE debate: Back to relevance.In: In: Journal of International Business Studies, pp.1-8.Journal of International Business Studies, pp.1-8.

Steps inSteps in Meta-Analysis Meta-Analysis The term “Meta-Analysis” was coined after a paper by Glass in the The term “Meta-Analysis” was coined after a paper by Glass in the

1970s. 1970s.

Glass defined Meta-Analysis as Glass defined Meta-Analysis as “… “…the statistical analysis of a large collection of analysis results the statistical analysis of a large collection of analysis results

from individual studies for the purpose of integrating the findings.”from individual studies for the purpose of integrating the findings.” Two Other definitions of Meta-Analysis describing it as Two Other definitions of Meta-Analysis describing it as a collection of statistical techniques for combining studies or as a a collection of statistical techniques for combining studies or as a

summary andsummary and statistical analysis of the results of several studies testing the same statistical analysis of the results of several studies testing the same

relationship, see.relationship, see.

Smith, M. L., & Glass, G. V. (1977). Meta-analysis of psychotherapy outcome studies. American Psychologist, 32, pp. 752 – 760.

Gelman, A.; Carlin, J.B.; Stern, H. S. & Rubin, D.B. (1995) Bayesian Data Analysis, pp. 148, 149.

Topics for a full Meta-Topics for a full Meta-AnalysisAnalysis

a)a) Abstract or executive SummaryAbstract or executive Summaryb)b) Background informationBackground informationc)c) Hypotheses tested / question to be addressed in the reviewHypotheses tested / question to be addressed in the reviewd)d) Methods of ReviewMethods of Reviewe)e) Details of studies included in the reviewDetails of studies included in the reviewf)f) Details of studies excluded in the reviewDetails of studies excluded in the reviewg)g) Results of Meta-AnalysisResults of Meta-Analysish)h) Report analysis of the robustness of the resultsReport analysis of the robustness of the resultsi)i) DiscussionDiscussionj)j) Implications of the ReviewImplications of the Reviewk)k) ReferencesReferencesl)l) Dissemination and further researchDissemination and further research

Problem Problem FormulationFormulation To specify the problem to be investigated or the question to To specify the problem to be investigated or the question to

be answered it will be necessary to start with a statement, be answered it will be necessary to start with a statement, which will guide the selection of the research studies. which will guide the selection of the research studies.

The problem specification process is an iterating process. It The problem specification process is an iterating process. It starts with the statement and will be cleared while starts with the statement and will be cleared while information will be found and information will be found and analysed analysed from relevant studies.from relevant studies.

Also, it is necessary to identify the form of the research Also, it is necessary to identify the form of the research findings to be Mfindings to be Meta-Analysed. Of course, findings must be in eta-Analysed. Of course, findings must be in form of quantitative data. It is notform of quantitative data. It is not necessary to look for the necessary to look for the same effect size, because there are transformation methods same effect size, because there are transformation methods to convert them into each other.to convert them into each other.

Halvorsen, K.T. (1994). The Reporting Format. In: Cooper, Harris, & Hedges, Halvorsen, K.T. (1994). The Reporting Format. In: Cooper, Harris, & Hedges, Larry V. (1994). The Handbook of Research Synthesis, Russell Sage Larry V. (1994). The Handbook of Research Synthesis, Russell Sage Foundation, New York, pp. 427.Foundation, New York, pp. 427.

Problem FormulationProblem Formulation

Culture as a Concept was too broadCulture as a Concept was too broad

Values are conceptualized and measured differently Values are conceptualized and measured differently by alternative Theorists:by alternative Theorists:– Schwartz (SVS and PVQ)Schwartz (SVS and PVQ)– InglehartInglehart– HofstedeHofstede– HouseHouse– O’ReillyO’Reilly– Denison and MishraDenison and Mishra

Problem FormulationProblem Formulation

Level of Level of Propositions and Analysis:Propositions and Analysis:

– Individual Individual – OrganizationalOrganizational– CountryCountry– Multi- LevelMulti- Level

Within LevelWithin Level Between LevelBetween Level

Hypotheses testedHypotheses testedHofstedeHofstede

A low power distance ranking indicates the society de-A low power distance ranking indicates the society de-emphasising the differences between citizen’s power emphasising the differences between citizen’s power and wealth. In these societies, equality and opportunity and wealth. In these societies, equality and opportunity for everyone is stressed. PDI represents five beliefs that for everyone is stressed. PDI represents five beliefs that discourage innovation. They are hierarchy, vertical discourage innovation. They are hierarchy, vertical communication, centralization of power, tight control communication, centralization of power, tight control over employees and resistance to changes in power over employees and resistance to changes in power distribution. Therefore we can formulate the following distribution. Therefore we can formulate the following proposition:proposition:

H1 Societies (Organizations) with H1 Societies (Organizations) with higherhigher power distance power distance will be less innovative than societies (Organizations) will be less innovative than societies (Organizations) withwith shorter power distance.shorter power distance.

Hypotheses testedHypotheses testedHofstedeHofstede

H2: Individualistic societies (Organizations) will be H2: Individualistic societies (Organizations) will be more innovative than collectivistic ones.more innovative than collectivistic ones.

H3: The societies (Organizations) with higher H3: The societies (Organizations) with higher Masculinity Masculinity score will be more innovative.score will be more innovative.

H4: Societies (Organizations) with higher H4: Societies (Organizations) with higher Uncertainty Uncertainty avoidance score will be less innovative.avoidance score will be less innovative.

Hypotheses testedHypotheses testedSchwartzSchwartz

H1: The higher the openness to change, the higher the H1: The higher the openness to change, the higher the innovation.innovation.

H2: The higher the conservation tendency the lower H2: The higher the conservation tendency the lower the innovation.the innovation.

Because the lower order Factors of self- Because the lower order Factors of self- transcendence and self- enhancement have opposite transcendence and self- enhancement have opposite effects one can not make predictions on the second effects one can not make predictions on the second order level. order level.

Data collectionData collectiona)a) Review ArticlesReview Articlesb)b) References in StudiesReferences in Studiesc)c) Computerized Bibliographic Databases “Keyword Searches”: Computerized Bibliographic Databases “Keyword Searches”:

Sociological Abstracts, GESIS SozioGuide (Sociological Abstracts, GESIS SozioGuide (Gesellschaft Gesellschaft Sozialwissenschaftlicher Infrastruktureinrichtungen e.VSozialwissenschaftlicher Infrastruktureinrichtungen e.V.), .), SOSIG (Social Science Information Gateway), (…)SOSIG (Social Science Information Gateway), (…)

d)d) Bibliographic Reference VolumesBibliographic Reference Volumese)e) Relevant JournalsRelevant Journalsf)f) Conference Programs and ProceedingsConference Programs and Proceedingsg)g) Authors and ExpertsAuthors and Expertsh)h) Government AgenciesGovernment Agenciesi)i) Google Scholar Google Scholar

Data collectionData collection Finding nearly all relevant references to a chosen Finding nearly all relevant references to a chosen

topic is one of the most important and most difficult topic is one of the most important and most difficult tasks in providing a good Meta-Analysis.tasks in providing a good Meta-Analysis.

This is necessary, because a Meta-Analysis should This is necessary, because a Meta-Analysis should give an give an

overview over all studies so far done. overview over all studies so far done.

It is important to collect all studies, also unpublished It is important to collect all studies, also unpublished ones.ones.

Selection CriteriaSelection Criteria

Topic / Research FieldTopic / Research Field

Values as explanatory variables for innovationValues as explanatory variables for innovation

Availability of a correlation matrix for performing a Availability of a correlation matrix for performing a Meta-AnalysisMeta-Analysis

English and German articles English and German articles

Selection Process. Number Selection Process. Number of articlesof articles

795 articles found795 articles found

344 available344 available

10 articles with correlation matrices dealing with 10 articles with correlation matrices dealing with cutlural values and innovationcutlural values and innovation

Second Selection Process. Second Selection Process. Number of articlesNumber of articles

102 articles found102 articles found

60 available60 available

No articles with correlation matrices dealing with No articles with correlation matrices dealing with cultural values and innovationcultural values and innovation

Search StrategySearch Strategy

The key word used was "Culture and Innovation". It The key word used was "Culture and Innovation". It was used as a whole unit and not the single concepts was used as a whole unit and not the single concepts for Full Texts search from 2000 till 2010.for Full Texts search from 2000 till 2010.

ScholarScholar WISOWISO EconlitEconlitSociological Sociological

AbstractsAbstractsSSRNSSRN PsycinfoPsycinfo

HitsHits 701701 99 1919 1212 1818 3636

AvailabilityAvailability 318318 33 22 11 1313 77

Same as Same as Google Google ScholarScholar

-- 22 00 66 00 44

Second Search StrategySecond Search Strategy

The key word used was “Values and Innovation". It The key word used was “Values and Innovation". It was used as a whole unit and not the single concepts was used as a whole unit and not the single concepts for Full Texts search from 2000 till 2010.for Full Texts search from 2000 till 2010.

ScholarScholar

HitsHits 102102

AvailabilityAvailability 6060

ExpertsExpertsNumber of recommended Papers

Used for Current Analysis

Expert 1 3 0Expert 2 13 0Expert 3 1 0Reasons for the selection:Reasons for the selection: Older than 2000Older than 2000 No relationship between Values and InnovationNo relationship between Values and Innovation Without Correlation Matrices Without Correlation Matrices

But very useful for problem formulation and theoretical But very useful for problem formulation and theoretical specification!specification!

Overview of Final StudiesOverview of Final StudiesStudyStudy YearYear NN LevelLevel Dependent Variable Dependent Variable Value TheoryValue Theory

Ambos Ambos SchlegelmilchSchlegelmilch 20082008 139 139 FirmFirm PerformancePerformance Hofstede (4)Hofstede (4)

JaskyteJaskyte 20042004 247247 FirmFirm Organizational Organizational InnovativenessInnovativeness O’Reilly (7)O’Reilly (7)

JaskyteJaskyte 20112011 79 79 FirmFirmAdministrative and Administrative and

technological technological innovationsinnovations

O’Reilly (7)O’Reilly (7)

Jaskyte DresslerJaskyte Dressler 20042004 1919 FirmFirm Organizational Organizational InnovativenessInnovativeness O’Reilly (7)O’Reilly (7)

JooJoo 20102010 6262 CountryCountryBroadband Internet Broadband Internet

technologies technologies (Innovation)(Innovation)

Hofstede/Inglehart Hofstede/Inglehart (3)(3)

Sarros et. al.Sarros et. al. 20052005 19181918 FirmFirm InnovationInnovation O’Reilly (7)O’Reilly (7)

Taylor WilsonTaylor Wilson 20102010 6262 CountryCountry InnovationInnovation Hofstede/Schwarz/Hofstede/Schwarz/House (5)House (5)

Teigland et. al.Teigland et. al. 20092009 14361436 FirmFirm Innovation Innovation PerformancePerformance Hofstede (4)Hofstede (4)

Wang et. al.Wang et. al. 20102010 142 142 FirmFirm Innovation Innovation PerformancePerformance O’Reilly (7)O’Reilly (7)

Yang HsuYang Hsu 20102010 175175 FirmFirm Process innovation, Process innovation, Product innovationProduct innovation

Denison and Mishra Denison and Mishra (1)(1)

Concepts in Different Value Concepts in Different Value TheoriesTheories

SchwartzSchwartz O’ReillyO’Reilly HouseHouse HofstedeHofstede Denison / MishraDenison / Mishra InglehartInglehart

PowerPower InnovationInnovationCharismatic/Value Charismatic/Value

BasedBasedPowerPower

DistanceDistanceInvolvementInvolvement

Traditional vs. Traditional vs. Secular-Rational Secular-Rational

ValuesValues

SecuritySecurity StabilityStability Team OrientedTeam OrientedUncertainty Uncertainty AvoidanceAvoidance

ConsistencyConsistencySurvival vs. Self-Survival vs. Self-

Expression ValuesExpression Values

ConformityConformityRespect for Respect for

PeoplePeopleSelf-ProtectiveSelf-Protective

Collectivism-Collectivism-IndividualismIndividualism

AdaptabilityAdaptability

TraditionTraditionOutcome Outcome

OrientationOrientationParticipativeParticipative

Masculinity-Masculinity-FemininityFemininity

MissionMission

AchievementAchievement Attention to DetailAttention to Detail HumaneHumane

HedonismHedonism Team OrientationTeam Orientation AutonomousAutonomous

BenevolenceBenevolence AggressivenessAggressiveness

UniversalismUniversalism

StimulationStimulation

Self- DirectionSelf- Direction

O’ReillyO’Reilly (See Sarros et. al. 2005)(See Sarros et. al. 2005)

Hofstede Culture ValuesHofstede Culture Values(See Hofstede et. al. 1984)(See Hofstede et. al. 1984)

InglehartInglehart(see Inglehart et. al. 2000)(see Inglehart et. al. 2000)

Schwartz ValuesSchwartz Values(See (See Borg et. al. 2010Borg et. al. 2010))

O’Reilly embedded in O’Reilly embedded in SchwartzSchwartz(see Borg et. al. 2010)(see Borg et. al. 2010)

O’Reilly embedded in O’Reilly embedded in SchwartzSchwartz(see Borg et. al. 2010)(see Borg et. al. 2010)

O’Reilly embedded in O’Reilly embedded in SchwartzSchwartz(see Borg et. al. 2010)(see Borg et. al. 2010)

Data analysis and Data analysis and interpretationinterpretation

Two steps have to be carried out in the data analysis Two steps have to be carried out in the data analysis stage of a Meta-Analysis:stage of a Meta-Analysis:

First, it is necessary to First, it is necessary to integrate the single findings.integrate the single findings.

And second, the variance has toAnd second, the variance has to be examined be examined..

Correlation Matrices: Correlation Matrices: Teigland et. al. 2009 Teigland et. al. 2009

Correlation Matrices: Correlation Matrices: Jaskyte Jaskyte 20042004

Correlation Matrices: Correlation Matrices: Joo Joo 2010 2010

Correlation Matrices: Correlation Matrices: Sarros Sarros et. al. 2005 et. al. 2005

Correlation Matrices: Correlation Matrices: Wang Wang et. al. 2010et. al. 2010

SummarySummary

In the phase of problem formulation in Meta- Analysis In the phase of problem formulation in Meta- Analysis the comparison of theories is missing in the present the comparison of theories is missing in the present Textbooks. Textbooks.

Google Scholar has been very efficient to find Papers Google Scholar has been very efficient to find Papers compared with Data- Banks.compared with Data- Banks.

For the relationship of values and innovation we have For the relationship of values and innovation we have to continue our search to get enough correlations to continue our search to get enough correlations matrices. Especially we will look for the unavailable matrices. Especially we will look for the unavailable literature.literature.

References of the original References of the original studiesstudies

AMBOS, B./SCHLEGELMILCH, B.B. (2008): Innovation in Multinational AMBOS, B./SCHLEGELMILCH, B.B. (2008): Innovation in Multinational Firms: Does Cultural Fit Enhance Performance. In: Firms: Does Cultural Fit Enhance Performance. In: Management Management International Review,International Review, Vol. 48 (2), pp. 189-206. Vol. 48 (2), pp. 189-206.

JASTYKE, K. (2004): Transformational Leadership, Organizational JASTYKE, K. (2004): Transformational Leadership, Organizational Culture, and Innovativeness in Nonprofit Organizations. In: Culture, and Innovativeness in Nonprofit Organizations. In: Nonprofit Nonprofit Management & LeadershipManagement & Leadership, Vol. 15 (2), pp. 153-168., Vol. 15 (2), pp. 153-168.

JASTYKE, K. (2011): Predictors of Administrative and Technological JASTYKE, K. (2011): Predictors of Administrative and Technological Innovations in Nonprofit Organizations. In: Innovations in Nonprofit Organizations. In: Public Administration Public Administration ReviewReview. pp.77-86.. pp.77-86.

JASTYKE, K./DRESSLER, W.W. (2004):Studying Culture as an Integral JASTYKE, K./DRESSLER, W.W. (2004):Studying Culture as an Integral Aggregate Variable: Organizational Culture and Innovation in a Group Aggregate Variable: Organizational Culture and Innovation in a Group of Nonprofit Organizations. In: of Nonprofit Organizations. In: Field MethodsField Methods, Vol. 16 (3), pp. 265-284., Vol. 16 (3), pp. 265-284.

JOO, S.-H. (2010): Beyond Economy: Impact of National Cultural Value JOO, S.-H. (2010): Beyond Economy: Impact of National Cultural Value on Nationwide broadband diffusion. Dissertation, University of on Nationwide broadband diffusion. Dissertation, University of Michigan.Michigan.

References of the original References of the original studiesstudies

SARROS, J.C./GRAY, J./DENSTEN, I.L./COOPER, B. (2005): The SARROS, J.C./GRAY, J./DENSTEN, I.L./COOPER, B. (2005): The Organizational Culture Profile Revisited and Revised: An Australian Organizational Culture Profile Revisited and Revised: An Australian Perspective. In: Perspective. In: Australian Journal of ManagementAustralian Journal of Management, Vol. 30 (1), pp.159-, Vol. 30 (1), pp.159-182.182.

TAYLOR, M.Z./WILSON, S. (2010): Does culture still matter?: The TAYLOR, M.Z./WILSON, S. (2010): Does culture still matter?: The effects of individualism on national innovation rates. In: effects of individualism on national innovation rates. In: Journal of Journal of Business Venturing.Business Venturing.

TEIGLAND, R./CHEN, Y.-Y./FEY, C.F. (2009): Contingency Effects of TEIGLAND, R./CHEN, Y.-Y./FEY, C.F. (2009): Contingency Effects of National Culture and Institutions on how social Networks influence National Culture and Institutions on how social Networks influence individual creative Performance. Stockholm School of Economics.individual creative Performance. Stockholm School of Economics.

YANG, Y.-Ch./HSU, J.-M. (2010): YANG, Y.-Ch./HSU, J.-M. (2010): Organizational process alignmentOrganizational process alignment, , culture and innovation. In: culture and innovation. In: African Journal of Business Management,African Journal of Business Management, Vol. 4 (11), pp. 2231-2240.Vol. 4 (11), pp. 2231-2240.

WANG, S./GUIDICE, R./TANSKY, J.W./WANG, Z.-M. (2010): The Critical WANG, S./GUIDICE, R./TANSKY, J.W./WANG, Z.-M. (2010): The Critical Role of Culture when you really want to Innovate. In: Role of Culture when you really want to Innovate. In: Human Resource Human Resource ManagementManagement,, Vol. 49 (4), pp. 767– 792.,, Vol. 49 (4), pp. 767– 792.

ReferencesReferences BORG, I./GROENEN, P.J.F./JEHN, K.A./BILSKY, W./SCHWARTZ S.H. BORG, I./GROENEN, P.J.F./JEHN, K.A./BILSKY, W./SCHWARTZ S.H.

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DENSION, D.R./MISHRA, A.K. (1995):Toward a Theory of Organizational DENSION, D.R./MISHRA, A.K. (1995):Toward a Theory of Organizational Culture and Effectiveness. In: Culture and Effectiveness. In: Organization ScienceOrganization Science, Vol. 6 (2), pp. 204-, Vol. 6 (2), pp. 204-223.223.

DOBEWALL, H./STRACK, M./REALO, A. (2011): A Comparison of DOBEWALL, H./STRACK, M./REALO, A. (2011): A Comparison of Inglehart’s and Schwartz’s Value Dimensions at the Individual and Inglehart’s and Schwartz’s Value Dimensions at the Individual and Country Levels. In: Survey research methods (in press)Country Levels. In: Survey research methods (in press)

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Thank you for your Thank you for your attention!attention!