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

1. Culture, Values and Innovation:First Steps of a Meta-Analysis Peter Schmidt (University of Giessen and HSE Moscow) Florian Zercher (University of Gießen)

2. Table of Contents • Introduction • Steps of the Meta-Analysis • Problem Formulation • Data Collection • Data Evaluation • Computation of Effect Sizes • Summary and unsolved Problems

3. This is a critical summary review of the debate about the Global Leadership and Organizational Behavior Effectiveness (GLOBE) study in JIBS and other journals between November 2006 and the present issue. Several contributors did not realize that GLOBE used three essential constructs taken from my publications in a sense entirely different from mine: values, practices, and organizational culture. Not recognizing the ensuing confusion, they had no answer for the question in my 2006 review: what did GLOBE really measure? Introduction

4. Introduction If you do not know what you are talking about, you can continue arguing for ever. Beyond the fuzziness of what is measured, the debate leaves us with an even more fundamental question: what is the use of the GLOBE dimensions? Hofstede, Geert (2010): The GLOBE debate: Back to relevance. In: Journal of International Business Studies, pp.1-8.

5. Steps in Meta-Analysis • The term “Meta-Analysis” was coined after a paper by Glass in the 1970s. • Glass defined Meta-Analysis as “…the statistical analysis of a large collection of analysis results from individual studies for the purpose of integrating the findings.” Two Other definitions of Meta-Analysis describing it as a collection of statistical techniques for combining studies or as a summary and statistical analysis of the results of several studies testing the same 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.

6. Topics for a full Meta-Analysis • Abstract or executive Summary • Background information • Hypotheses tested / question to be addressed in the review • Methods of Review • Details of studies included in the review • Details of studies excluded in the review • Results of Meta-Analysis • Report analysis of the robustness of the results • Discussion • Implications of the Review • References • Dissemination and further research

7. Problem Formulation • To specify the problem to be investigated or the question to be answered it will be necessary to start with a statement, which will guide the selection of the research studies. • The problem specification process is an iterating process. It starts with the statement and will be cleared while information will be found and analysed from relevant studies. • Also, it is necessary to identify the form of the research findings to be Meta-Analysed. Of course, findings must be in form of quantitative data. It is not necessary to look for the same effect size, because there are transformation methods to convert them into each other. • Halvorsen, K.T. (1994). The Reporting Format. In: Cooper, Harris, & Hedges, Larry V. (1994). The Handbook of Research Synthesis, Russell Sage Foundation, New York, pp. 427.

8. Problem Formulation • Culture as a Concept was too broad • Values are conceptualized and measured differently by alternative Theorists: • Schwartz (SVS and PVQ) • Inglehart • Hofstede • House • O’Reilly • Denison and Mishra

9. Problem Formulation • Level of Propositions and Analysis: • Individual • Organizational • Country • Multi- Level • Within Level • Between Level

10. Hypotheses testedHofstede • A low power distance ranking indicates the society de-emphasising the differences between citizen’s power and wealth. In these societies, equality and opportunity for everyone is stressed. PDI represents five beliefs that discourage innovation. They are hierarchy, vertical communication, centralization of power, tight control over employees and resistance to changes in power distribution. Therefore we can formulate the following proposition: • H1 Societies (Organizations) with higher power distance will be less innovative than societies (Organizations) withshorter power distance.

11. Hypotheses testedHofstede • H2: Individualistic societies (Organizations) will be more innovative than collectivistic ones. • H3: The societies (Organizations) with higher Masculinity score will be more innovative. • H4: Societies (Organizations) with higher Uncertainty avoidance score will be less innovative.

12. Hypotheses testedSchwartz • H1: The higher the openness to change, the higher the innovation. • H2: The higher the conservation tendency the lower the innovation. • Because the lower order Factors of self- transcendence and self- enhancement have opposite effects one can not make predictions on the second order level.

13. Data collection • Review Articles • References in Studies • Computerized Bibliographic Databases “Keyword Searches”: Sociological Abstracts, GESIS SozioGuide (Gesellschaft Sozialwissenschaftlicher Infrastruktureinrichtungen e.V.), SOSIG (Social Science Information Gateway), (…) • Bibliographic Reference Volumes • Relevant Journals • Conference Programs and Proceedings • Authors and Experts • Government Agencies • Google Scholar

14. Data collection • Finding nearly all relevant references to a chosen topic is one of the most important and most difficult tasks in providing a good Meta-Analysis. • This is necessary, because a Meta-Analysis should give an overview over all studies so far done. • It is important to collect all studies, also unpublished ones.

15. Selection Criteria • Topic / Research Field • Values as explanatory variables for innovation • Availability of a correlation matrix for performing a Meta-Analysis • English and German articles

16. Selection Process. Number of articles • 795 articles found • 344 available • 10 articles with correlation matrices dealing with cutlural values and innovation

17. Second Selection Process. Number of articles • 102 articles found • 60 available • No articles with correlation matrices dealing with cultural values and innovation

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

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

20. Experts • Reasonsfortheselection: • Older than 2000 • No relationship between Values and Innovation • Without Correlation Matrices • But very useful for problem formulation and theoretical specification!

21. Overviewof Final Studies

22. Concepts in Different Value Theories

23. O’Reilly(See Sarros et. al. 2005)

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

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

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

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

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

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

30. Data analysis and interpretation Two steps have to be carried out in the data analysis stage of a Meta-Analysis: • First, it is necessary to integrate the single findings. • And second, the variance has to be examined.

31. Correlation Matrices: Teigland et. al. 2009

32. Correlation Matrices: Jaskyte 2004

33. Correlation Matrices: Joo 2010

34. Correlation Matrices: Sarros et. al. 2005

35. Correlation Matrices: Wang et. al. 2010

36. Summary • In the phase of problem formulation in Meta- Analysis the comparison of theories is missing in the present Textbooks. • Google Scholar has been very efficient to find Papers compared with Data- Banks. • For the relationship of values and innovation we have to continue our search to get enough correlations matrices. Especially we will look for the unavailable literature.

37. References of the original studies • AMBOS, B./SCHLEGELMILCH, B.B. (2008): Innovation in Multinational Firms: Does Cultural Fit Enhance Performance. In: Management International Review, Vol. 48 (2), pp. 189-206. • JASTYKE, K. (2004): Transformational Leadership, Organizational Culture, and Innovativeness in Nonprofit Organizations. In: Nonprofit Management & Leadership, Vol. 15 (2), pp. 153-168. • JASTYKE, K. (2011): Predictors of Administrative and Technological Innovations in Nonprofit Organizations. In: Public Administration Review. pp.77-86. • JASTYKE, K./DRESSLER, W.W. (2004):Studying Culture as an Integral Aggregate Variable: Organizational Culture and Innovation in a Group of Nonprofit Organizations. In: Field Methods, Vol. 16 (3), pp. 265-284. • JOO, S.-H. (2010): Beyond Economy: Impact of National Cultural Value on Nationwide broadband diffusion. Dissertation, University of Michigan.

38. References of the original studies • SARROS, J.C./GRAY, J./DENSTEN, I.L./COOPER, B. (2005): The Organizational Culture Profile Revisited and Revised: An Australian Perspective. In: Australian Journal of Management, Vol. 30 (1), pp.159-182. • TAYLOR, M.Z./WILSON, S. (2010): Does culture still matter?: The effects of individualism on national innovation rates. In: Journal of Business Venturing. • TEIGLAND, R./CHEN, Y.-Y./FEY, C.F. (2009): Contingency Effects of National Culture and Institutions on how social Networks influence individual creative Performance. Stockholm School of Economics. • YANG, Y.-Ch./HSU, J.-M. (2010): Organizational process alignment, culture and innovation. In: African Journal of Business Management, Vol. 4 (11), pp. 2231-2240. • WANG, S./GUIDICE, R./TANSKY, J.W./WANG, Z.-M. (2010): The Critical Role of Culture when you really want to Innovate. In: Human Resource Management,, Vol. 49 (4), pp. 767– 792.

39. BORG, I./GROENEN, P.J.F./JEHN, K.A./BILSKY, W./SCHWARTZ S.H. (2009): Embedding the organizational culture profile into Schwartz’s universal value theory using multidimensional scaling with regional restrictions. ERIM Report Series Research in Management, Erasmus University Rotterdam. DENSION, D.R./MISHRA, A.K. (1995):Toward a Theory of Organizational Culture and Effectiveness. In: Organization Science, Vol. 6 (2), pp. 204-223. DOBEWALL, H./STRACK, M./REALO, A. (2011): A Comparison of Inglehart’s and Schwartz’s Value Dimensions at the Individual and Country Levels. In: Survey research methods (in press) HOFSTEDE, G./BOND, M.H. (1984):Hofstede's Culture Dimensions : An Independent Validation Using Rokeach's Value Survey. In: Journal of Cross-Cultural Psychology, Vol.15 (4), pp. 417-433. References

40. INGLEHART, R./BAKER, W.E. (2000):Modernization, Cultural Change, and the Persistence of Traditional Values. In: American Sociological Review, Vol. 65 (1), pp. 19-51. LEPAK, D.P./SNELL, S.A. (2002): Examining the Human Resource Architecture: The Relationships Among Human Capital, Employment, and Human Resource Configurations. In: Journal of Management, Vol. 28 (4), pp.517–543. O'REILLY, C.A./CHATMAN, J./CALDWELL, D.F. (1991): People and Organizational Culture: A Profile Comparison Approach to Assessing Person- Organization Fit. In: The Academy of Management Journal, Vol. 34 (3), pp. 487-516. SUN, H. (2009): A meta-analysis on the influence of national culture on innovation capability. In: Int. J. Entrepreneurship and Innovation Management, Vol. 10 (3/4), pp. 353-360. References

41. Thank you for your attention!