Cross-cultural study of American and Chinese managers: Use of information in decision-making

This study examined relationships between national culture, cognitive style, and the use of available information to make business decisions. These relationships were tested within a controlled experiment using experienced managers from two different cultures (Chinese and American) using three controlled information sets: Holistic (contextual relationships), Analytic (raw data) and Integrated (equal amounts of both). A cognitive style measurement was used as an intermediate variable to distinguish between the effects of culture and cognitive style on how information was used to develop business strategies. The amount of references made to both holistic and analytic concepts within the decision outcomes texts were the dependent variables.; Samples included 94 Chinese MBA students at two Beijing universities, and 50 American managers from Midwest America, recruited from three MBA classes at two Midwestern universities and local businesses. All participants had at least two years of managerial experience and English proficiency.; Differences and similarities were found in how Chinese and American managers used information provided. National culture was a strong differentiating factor for the use of holistic information (p = .002), but not for the use of analytic information (p = .058). Cognitive style only proved significant in explaining American managers' use of holistic information (p = .034). The type of information received also affected how holistic information was used, but not analytic information.; A consistent theme resulted from this study: culture and cognitive style have an affect on how one uses holistic information, but no affect on the use of analytic information. Therefore, attention to holistic information does not diminish attention to analytic information when making decisions.; These findings are important for HRD professionals. One's culture and cognitive style often result in differences in the perceived value of using contextual information to make business decisions, which may result in conflict, especially when time is limited. Management teams can avoid potential conflict by using the Holism Scale as a tool to discuss such value differences.; For practitioners and researchers, findings support the theory that management practices are not universal. As the workplace becomes more global, additional cross-cultural empirical research and organizational attention is needed.