The Influence of Culture and Framing on Investment Decision-Making: The Case of Vietnam and Germany

  • Abstract Purpose Cultural studies in business and economics research are still limited to particular cultures. Knowledge on cultural differences may help international corporations to adapt management practices according to the markets they are operating in. The purpose of this paper is to study the issue of escalation of commitment and framing in a new cultural setting involving Germany and Vietnam. This setting is unique and particularly interesting, for Germany being the biggest European market and Vietnam being one of the fastest growing emerging markets in Asia. Design/methodology/approach The authors use a lab experiment with student participants from Germany and Vietnam. Findings In a 2×2 in between-experiment, the authors find strong support that Vietnamese participants have a stronger tendency to invest additional resources and evidence that negatively framed information leads to the higher escalation of commitment. Implications are discussed. Originality/value The unique empirical comparison is important because differences between other western and eastern countries do not necessarily generalize to the setting.

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Metadaten
Author:Dennis Fehrenbacher, Peter RötzelORCiD, Burkhard Pedell
DOI:https://doi.org/10.1108/CCSM-10-2017-0139
Parent Title (English):Cross Cultural & Strategic Management
Document Type:Article
Language:English
Year of Completion:2018
Release Date:2019/12/19
Tag:Escalation of commitment; Framing; Investment decision-making; Lab experiment
GND Keyword:Investitionsentscheidung; Vietnam
Volume:25
Issue:4
First Page:763
Last Page:780
Urheberrecht:1
research focus :Wissensmanagement und Strukturwandel / Business Transformation and Innovation Management
Licence (German):Creative Commons - CC BY-NC-ND - Namensnennung - Nicht kommerziell - Keine Bearbeitungen 4.0 International
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