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Journal of International Business Studies (2004) 35, 46–60

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Empowerment effects across cultures

Michael K Hui1, Kevin Au2 Abstract


and Henry Fock1 Three studies examined cross-cultural variations in empowerment effects.
Study 1 investigated whether Hofstede’s power distance scores moderated the
1
Department of Marketing, The Chinese
effect of job autonomy on job satisfaction using World Values Survey data on
University of Hong Kong, Hong Kong; 33 nations. Study 2 surveyed frontline hotel employees from Canada and PRC
2
Department of Management, The Chinese to investigate the moderating role of power distance at the individual level. In
University of Hong Kong, Hong Kong Study 3, hotel management students from Canada and PRC were asked to play
the role of a frontline employee, who had to handle a special customer request,
Correspondence: K Au, Department of in a scenario experiment. These studies show consistently that the cultural
Management, KKL Building, Chinese value of power distance moderates the effect of empowerment on job
University of Hong Kong, Shatin, satisfaction. Moreover, willingness to accept and exercise the discretionary
Hong Kong
power allowed by management and desire to satisfy customer needs and wants
Tel: þ 852 2609 7802
Fax: þ 852 2603 5473 are two employee conditions that are essential for the successful implementa-
E-mail: kevin@baf.msmail.cuhk.edu.hk tion of the empowerment approach.
Journal of International Business Studies (2004) 35, 46–60. doi:10.1057/palgrave.
jibs.8400067

Keywords: empowerment; job satisfaction; power distance; services; China

Introduction
Service employees play the role of boundary-spanners at the
interface between the organisation and the customer, and often
experience role conflict in their jobs when faced with incompatible
requests from customers and management (Schneider, 1980). On
the one hand, service employees are required to comply with
organisational rules and regulations. On the other hand, they are
hired to serve and satisfy customers. When frontline employees
encounter customer requests that require them to violate their
usual work procedures, they are ‘caught in the middle’, and role
stress arises (Singh et al., 1994). Empowerment, defined as
providing employees with discretion and autonomy in connection
with their work, has been widely accepted as an effective means by
which service managers can improve the job performance and
satisfaction of their frontline staff.
More recently, several authors have argued that the effectiveness
of the empowerment approach may vary across cultures. Incon-
gruence between empowerment as a management practice and
cultural values may attenuate the positive effect of discretion and
autonomy on job satisfaction in high power-distance nations where
subordinates are accustomed to taking orders from their supervisors
(Morris and Pavett, 1992; Argyris, 1998; Eylon and Au, 1999; Robert
et al., 2000). However, empirical evidence pertaining to variation in
Received: 18 May 2002
Revised: 17 July 2002
empowerment effects between high power-distance and low power-
Accepted: 28 September 2003 distance cultures is far from being unequivocal. In this paper, we
Online publication date: 18 December 2003 argue that the investigation of the moderating effect of national
Empowerment effects across cultures Michael K Hui et al
47

culture on the relationship between empowerment make use of their discretionary power to serve a
and job satisfaction should take into consideration a special customer request that is backed by a good
number of methodological and conceptual factors. reason, one that warrants their attention and effort.
In particular, we propose and demonstrate that two
conditions are essential for the successful imple- Literature review
mentation of the empowerment approach. First, Empowerment has been a tantalising notion for
service employees must be willing to accept and academics and practitioners since the concept
exercise their discretionary power when serving emerged in the 1980s. After two decades of
customers. As suggested by prior researchers (e.g. research, empowerment is now widely accepted as
Eylon and Au, 1999; Robert et al., 2000), the cultural a potent way to enhance job performance and
dimension of power distance should affect the satisfaction (Conger and Kanungo, 1988; Bowen,
personal value of equal power sharing and hence 1995; Spreitzer, 1995), especially for frontline
the willingness of employees to accept and exercise service employees who perform their job duties at
discretionary power. Second, employees must be the interface between a firm and its customers
motivated to satisfy customer needs and wants when (Bowen and Lawler, 1992). There is also an emer-
playing out the role of boundary-spanners. Empow- ging belief that empowerment as a management
erment affects job satisfaction because service practice may be more congruent with the cultural
employees can make use of their discretionary power values of some nations than with those of others.
to serve their customers. When service employees do One cultural dimension that has received consider-
not consider the delivery of superior customer value able research attention is power distance, which
to be their primary work goal and/or when they do refers to the extent to which people expect and
not consider a customer request to be one that accept that power is distributed unequally among
warrants their attention and effort, whether or not the different levels of the organisational hierarchy
they are given discretionary power to serve the (Hofstede, 1980). In general, members of low
customer is unlikely to matter. power-distance cultures believe in power sharing
Three cross-cultural studies are presented to test between subordinates and supervisors. In contrast,
our propositions that empowerment effects vary members of high power-distance societies believe
with (a) the cultural value of power distance, and that subordinates should play the role of taking
(b) the innate and situational factors that influence instructions and orders from their supervisors.
the employees’ desire to satisfy customer needs and Accordingly, service managers should be less will-
wants. Study 1 establishes the generalisability of the ing to delegate decisions and service employees
influence of power distance on the relationship should be less willing to accept and exercise
between job autonomy and job satisfaction across a discretionary power in high power-distance nations
host of countries. In addition to power distance, than in low power-distance nations.
customer orientation and the nature of the custo- In terms of empirical support, however, Eylon
mer request are included in Studies 2 and 3 to and Au (1999) failed to confirm the moderating
demonstrate that, besides willingness to accept and effect of power distance on the relationship
exercise discretionary power, desire to satisfy cus- between empowerment and job satisfaction. Their
tomer needs and wants is another employee factor results indicated that subjects of both high power-
that affects the significance of empowerment distance and low power-distance cultures were
effects. Study 2 is a cross-cultural survey of the more satisfied with their jobs when empowered
frontline employees of hotels. Using validated than when disempowered. In related work, Robert
measures, the study examines at the individual et al. (2000) examined the effects of empowerment
level the moderating effects of power distance (i.e. on job satisfaction in four nations: India, Mexico,
the innate value of equal power sharing between Poland, and the US. They found that empowerment
supervisors and subordinates) and customer orien- was negatively associated with job satisfaction in
tation (i.e. the innate value of delivering superior India, which is widely regarded as a high power-
customer value) on the relationship between distance nation (Ralston et al., 1993). However,
empowerment and job satisfaction. Using an they found no significant association between
experimental method, Study 3 shows that empow- empowerment and job satisfaction in the remain-
erment significantly affects job satisfaction in low ing three national groups, which represented both
power-distance cultures, and the effect becomes high power-distance (Mexico and Poland) and low
more pronounced when service employees can power-distance (the US) cultures.

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Empowerment effects across cultures Michael K Hui et al
48

Conceptual and methodological issues behaviour should be more universal than culturally
Three conceptual and methodological factors may specific. This may explain why the studies con-
have contributed to the inconsistent and unex- ducted by Eylon and Au (1999) and Robert et al.
pected results in previous cross-cultural studies of (2000) failed to obtain unequivocal support for
empowerment. First, the different cultural groups the moderating effect of power distance on the
sampled might have shared the same set of values relationship between empowerment and job
as a result of their affiliation with the same satisf-action. In both studies, the researchers oper-
organisation or institution. As Robert et al. (2000) ationalised empowerment as psychological empow-
noted, their survey results might simply have erment, the effect of which on job satisfaction is
reflected a common organisational culture instead unlikely to vary across cultures. Furthermore,
of the four different national cultures, because the although discretionary empowerment provides
four national samples included in their study were employees with primary control, whether it
drawn from subsidiaries of the same company. will result in a sense of self-control and
Similarly, the subjects in the Eylon and Au (1999) self-efficacy should depend on the individual’s
experiment were local and foreign MBA students preference for primary control or secondary con-
of a Canadian university. Although the foreign trol, which should be partly shaped by the
students had different ethnic origins, their individual’s cultural background (Trompenaars,
values might have been altered in the process of 1997: Chapter 10). We therefore operationalised
acculturation. This is a common phenomenon for empowerment as discretionary empowerment
foreigners who need to internalise the knowledge rather than psychological empowerment in all of
and skills necessary to function in a new set of our three studies.
socio-cultural reinforcement contingencies (Jun Third, earlier researchers tested empowerment
et al., 2001). Improper sampling of cross-cultural effects using employees who were unlikely to
sample groups may confound the task of research- experience a significant desire to satisfy customer
ers seeking to explore the moderating effect of needs and wants. For employees who are indifferent
national culture on the relationship between to customer well-being, and for jobs that are simple
empowerment and job satisfaction. Accordingly, and routine, discretion and autonomy may actually
in our three studies, we used independent national create unnecessary confusion and uncertainty for
samples to examine empowerment effects across the employee (Bowen and Lawler, 1992; Bowen,
cultures. 1995). For example, the survey of factory workers
Second, it is important to distinguish between by Robert et al. (2000) might not be an appropriate
discretionary empowerment and psychological test of empowerment effects across cultures because
empowerment in the cross-cultural comparisons the survey respondents were unlikely to possess a
of empowerment effects. Whereas discretionary strong customer orientation, as they were hired and
empowerment refers to the management practice of trained primarily for operating efficiency rather
providing employees with discretion and autono- than for marketing effectiveness. Furthermore,
my, psychological empowerment refers to the employ- these respondents were unlikely to experience
ees’ feelings of being trusted, informed, supported, significant management–customer conflicts
motivated, in control, and competent. Previous because of their primary role as back-office workers
researchers (e.g. Arnold et al., 2000; Spreitzer, 1996) rather than as boundary-spanners (Schneider,
have argued that it is the perceptions of self-control 1980). Providing these factory workers with discre-
and self-efficacy rather than discretion and auton- tion and autonomy might produce no, or even
omy per se that affect job behaviour. More impor- negative, effects on job behaviour. Therefore, we
tantly, Rothbaum et al. (1982) have argued that, included genuine boundary-spanners (Study 2) or
although the positive consequences of control and asked respondents to play the role of boundary-
competence may be universal, people may achieve spanners (Study 3) in the investigation of empow-
a sense of mastery over the environment through erment effects across cultures. We also tested the
two alternative means: either by making use of moderating effect of customer orientation (Study 2)
their power to actively manipulate the environ- and the nature of special customer requests (Study
ment (primary control) or by relying on adaptation 3) (two variables that were expected to influence
and powerful others (secondary control). As psycho- the employees’ desire to satisfy customer needs and
logical empowerment refers to the internal feelings wants) on the relationship between empowerment
of self-control and self-efficacy, its effect on job and job satisfaction.

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Empowerment effects across cultures Michael K Hui et al
49

Study 1 are given in Table 1. After dropping nine countries


The purpose of Study 1 was to search for evidence lacking a power distance score in Hofstede (1991),
relating to the moderating effect of power distance we ended up with a final sample of 33 countries.
on the relationship between job autonomy and job
satisfaction. As noted earlier, previous researchers Variables and measurements
(Eylon and Au, 1999; Robert et al., 2000) have In the survey, job satisfaction was measured by the
argued that, as a management practice, empower- response to the question ‘Overall, how satisfied or
ment should be more compatible with low power- dissatisfied are you with your job?’ (1–10 ratings; a
distance cultures than with high power-distance
cultures. Power distance affects the employees’
willingness to accept and exercise discretionary Table 1 Descriptive statistics of key variables by country
power, and therefore should moderate the effect of
Country Job satisfaction Job autonomy Sample size
empowerment on job satisfaction. We therefore
hypothesise that: France 6.78 (1.97) 6.41 (2.66) 1002
Britain 7.42 (2.06) 6.98 (2.54) 1484
H1: The cultural dimension of power distance
W. Germany 7.17 (1.78) 6.18 (2.36) 2101
moderates the relationship between empower- Italy 7.29 (2.08) 6.74 (2.61) 2010
ment and job satisfaction: the larger the power Netherlands 7.48 (1.67) 7.16 (2.26) 1017
distance of the country, the weaker is the Denmark 8.24 (1.66) 7.41 (2.39) 1030
relationship. Belgium 7.79 (1.82) 7.05 (2.57) 2792
Spain 6.99 (2.10) 6.37 (2.80) 4147
Ireland 7.81 (2.00) 6.91 (2.59) 1000
N. Ireland 7.85 (1.89) 6.78 (2.52) 304
Method USA 7.85 (1.88) 7.36 (2.38) 1839
To examine the cross-cultural variation in empow- Canada 7.88 (1.77) 7.22 (2.29) 1730
erment effects, we conducted an hierarchical linear Japan 7.66 (2.31) 7.63 (2.44) 1011
modelling analysis of the data of World Values Mexico 7.66 (2.11) 6.87 (2.69) 1531
Survey II, a large-scale, multi-nation survey (Abram- S. Africa 7.45 (2.48) 6.88 (2.91) 2736
Hungary 7.22 (2.36) 6.18 (2.89) 999
son and Inglehart, 1995). Apart from generalisa-
Norway 7.88 (1.76) 7.01 (2.52) 1239
tions, large numbers of nations and subjects are
Sweden 8.08 (1.79) 7.72 (2.16) 1047
necessary when desire to satisfy customer needs Iceland 7.86 (1.74) 6.94 (2.50) 702
and wants – another employee factor that is Argentina 7.63 (2.17) 7.56 (2.67) 1002
expected to moderate the effect of empowerment Finland 7.56 (2.03) 7.18 (2.31) 588
on job satisfaction – is not accounted for in the S. Korea 6.51 (2.52) 6.85 (2.61) 1251
analysis. Poland 8.25 (2.21) 7.69 (2.91) 938
Switzerland 8.40 (1.88) 7.66 (2.40) 1400
Subjects Brazil 7.52 (2.40) 7.40 (2.77) 1782
Nigeria 7.48 (2.33) 6.99 (2.59) 1001
Between 1990 and 1993, 57,561 adults aged 18
Chile 7.63 (2.29) 7.00 (2.76) 1,500
years and above from 42 nations were interviewed Belarus 6.10 (2.37) 5.06 (2.62) 1015
by professional survey organisations in Western India 7.03 (2.34) 6.54 (2.77) 2500
nations and by local academic institutes in Eastern Czechoslovakia 6.78 (2.27) 5.69 (2.83) 1396
European nations. The sampled nations accounted E. Germany 6.75 (2.11) 6.00 (2.29) 1336
for over 70% of the world’s population. The use of Slovenia 7.21 (2.15) 6.01 (2.80) 1035
quota sampling, assigned according to census Bulgaria 6.20 (2.33) 5.42 (2.79) 1034
records on sex, age, occupation, and region, Romania 6.56 (2.29) 6.05 (2.81) 1103
allowed the survey to include all socio-economic China 7.01 (2.42) 5.88 (2.63) 1000
Portugal 7.42 (2.26) 6.95 (2.66) 1185
groups, and represented the populations in the
Austria 6.63 (3.44) 6.65 (2.98) 1460
respective nations. As a result, the sample para- Turkey 5.72 (2.48) 6.67 (3.32) 1030
meters of the survey were excellent estimates of the Lithuania 6.97 (2.30) 6.17 (2.95) 1000
population parameters (Carroll and Teo, 1996). This Latvia 6.45 (2.49) 6.01 (2.84) 903
is particularly valuable, as representative samples Estonia 6.66 (2.36) 6.24 (2.59) 1008
are rare in international business research, if such Russia 6.28 (2.49) 5.47 (2.86) 1961
data can be collected in the first place (Kotabe, Note: The values with and without parentheses are the means and
2002). The descriptive statistics of the key variables standard deviations of the variables.

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Empowerment effects across cultures Michael K Hui et al
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higher rating indicated greater satisfaction). Past In the hierarchical linear model, job autonomy,
studies have demonstrated the validity of this job satisfaction, and control variables were used as
measure by showing that it was significantly individual-level variables, whereas the power dis-
associated with life satisfaction (Oishi et al., 1999) tance score and wealth were society-level variables.
and intrinsic motivation (Huang and van de Vliert, At the individual level, job satisfaction was
2002). Job autonomy was measured by the response regressed on job autonomy for each society. At
to the question ‘How free are you to make decisions the society level, power distance and wealth
in your job?’ (1–10 ratings; a higher rating indi- predicted the within-society regression slopes that
cated greater autonomy). We conducted several indicate the degree of association between job
tests to affirm the validity of the job autonomy autonomy and job satisfaction. When entered in
measures. Based on the method in Blanchflower the model, individual-level variables were centred
and Freeman (1997), a one-way ANOVA tested at the group means, whereas society-level variables
whether occupations differed in job autonomy were centred at their grand means.
score, F(11, 32914)¼191.90, Po0.01. In line with Original HLM results are rearranged for easy
the data from the Quality of Employment Surveys understanding in Table 2. The coefficients can be
in the US (Karasek and Theorell, 1990: 43), low-skill understood as being similar to those in a regression
occupations (unskilled workers, M¼5.65; semi- analysis. A number of results are worth noting.
skilled workers, M¼5.78) scored lower than middle First, satisfaction increases with life freedom, age,
managers (M¼6.59), supervisors (M¼7.08), and and income (rows b, c and d). Second, job
professionals (M¼7.03). These groups, in turn, satisfaction is positively associated with job auton-
scored lower than the self-employed (small busi- omy (row e), which agrees with the existing
ness, M¼8.17; large business, M¼7.37). The mea- literature (e.g. Karasek, 1979). Third, cultural power
sure also showed some evidence of concurrent and distance is negatively related to the society means
discriminant validity.1 Finally, power distance of job satisfaction (row f), indicating that the
scores from Hofstede (1991) were used as the higher the power distance, the lower is the average
cross-level moderator. job satisfaction of the nation. One possible expla-
Life freedom was controlled for, as it is related to nation for this result is that power distance is
job autonomy and job satisfaction. Respondents associated with lower wealth, higher power differ-
were asked to indicate in the survey the extent of ential, and greater income inequality, all of which
the freedom of choice and control they felt they are expected to lead to lower job satisfaction
‘have over the way your life turns out’ (1–10 (Hofstede, 1980).
ratings; a higher rating indicated greater freedom). To test the cross-level moderating effect, we
In addition, age and income were included in the studied how power distance might affect the
statistical models as controls for demographic coefficient of job autonomy. The coefficient in
differences (Kohn, 1977). The wealth of the coun- row h of Table 2 indicates the interaction effect
try, as measured by per capita GDP, was used as a involving power distance and job autonomy. The
society-level control variable. results show that power distance moderates the
relationship between job autonomy and job satis-
faction (b¼0.003, Po0.01). The negative sign
Results and discussion means that the higher the power distance of a
We used the HLM package (Bryk and Raudenbush, country, the less positive is the relationship
1992) to conduct the analysis. The cross-level between job autonomy and job satisfaction. In
analysis of the HLM package is conceptually nations with high power-distance scores (e.g.
equivalent to regression analysis with interaction 104 for Malaysia), the cross-level moderator
terms for testing moderating effects. The difference (104  0.003¼0.31) essentially nullifies the
is that society-level moderators replace the usual effect of job autonomy (b¼0.30).2 In these nations,
individual-level moderators, such as gender, job job autonomy would hardly have a positive effect
complexity, and locus of control. HLM provides on job satisfaction. The interaction involving
more precise estimates of the multi-level interac- wealth and job autonomy is not significant (row
tions because it takes into account individual-level i), implying that the moderating effect of power
error and sample size differences across societies in distance is not caused by spurious effect of wealth.
estimating society-level coefficients (Bryk and Rau- These results indicate that job autonomy does less
denbush, 1992). to enhance job satisfaction in high power-distance

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Empowerment effects across cultures Michael K Hui et al
51

Table 2 Cross-level moderating analysis of job satisfaction as a function of cultural power distance and job autonomy using hierarchical
linear modelling

Coefficient Standard error T-ratio d.f.

Individual-level predictors
(a) Grand mean (g00) 7.261 0.091 79.519** 30
(b) Age (g10) 0.007 0.002 4.746** 32
(c) Income (g20) 0.031 0.009 3.592** 32
(d) Life freedom (g30) 0.095 0.011 8.346** 32
(e) Job autonomy (g40) 0.299 0.042 7.087** 30

Society-level predictors
(f) Power distance (g01) 0.015 0.006 2.430* 30
(g) Wealth (g02) 0.000009 0.000013 0.728 30

Cross-level moderator
(h) Power distance  job autonomy (g41) 0.003 0.001 2.533* 30
(i) Wealth  job autonomy (g42) 0.000004 0.000002 1.579 30
Note. As nine countries lacking the power distance score were dropped, the final sample contained 33 countries. Symbols in parentheses are labels from
the HLM output to enable readers familiar with HLM to follow the analysis. *Po0.05; **Po0.01.

nations than in low power-distance nations, as the relationship between empowerment and job
predicted by Hypothesis H1. satisfaction. As empowerment effects are expected
The results of Study 1 provide preliminary to vary with the employees’ willingness to accept
support for cross-cultural variation in empower- and exercise discretionary power, employees pos-
ment effects. Nonetheless, Study 1 succumbed to sessing a lower power distance value are more likely
two weaknesses. First, the use of single-item to feel satisfied at work if they can make their own
measures, though found to be useful by previous decisions. We therefore hypothesise that:
researchers (Wanous et al., 1997; Huang and van de
H2a: The effect of empowerment on job satisfac-
Vliert, 2002), is not a conventional practice in
tion will be more pronounced for service employ-
management research. Also, despite controlling
ees with lower power distance value.
wealth, the use of cross-level modelling cannot
rule out the possibility of other confounding effects As argued, the employees’ desire to satisfy
due to variables associated with cultural power customer needs and wants is another employee
distance (Hofstede, 1991). Demonstrating the mod- factor that should moderate the effect of empower-
erating effect of power distance at the individual ment on job satisfaction. Customer-oriented employ-
level (Bond and Smith, 1996) would add weight to ees – those who consider the delivery of superior
the proof. Study 2 was conducted to address these customer value to be their primary work goal –
two concerns. The study also included customer should share a strong desire to accommodate the
orientation, an innate value that affects the requests of customers (Han et al., 1998). Providing
employees’ desire to satisfy customer needs and these employees with discretionary power facil-
wants, in the modelling of empowerment effects itates their work and fulfils their desire to do a good
across cultures. job in serving the needs and wants of their
customers. We therefore hypothesise that:
H2b: The effect of empowerment on job satisfac-
Study 2
tion will be more pronounced for service employ-
In this cross-national survey of frontline hotel
ees with higher customer orientation.
workers, we examined the variation of empower-
ment effects with two innate values of service
employees: power distance and customer orienta- Method
tion. Whereas we operationalised power distance as
a society-level construct in Study 1, in this study we Data collection and sample
used validated measures to test, at the individual Surveys were conducted in Toronto, Canada, and
level, the moderating effect of power distance on Beijing, People’s Republic of China (PRC), on

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Empowerment effects across cultures Michael K Hui et al
52

frontline employees of up-scale hotels. Sampling the survey in PRC. The standard back-translation
from these two countries ensures a significant procedure (Brislin, 1980) was adopted to ensure
variation in the power distance value of respon- language equivalence and face validity. Included in
dents (Hofstede, 1991). Frontline hotel employees the questionnaire was a set of seven-point Likert-
are ideal subjects for this study, as they are typical type scales (1 – strongly disagree; 7 – strongly
boundary-spanners who often need to accommo- agree): the higher the score, the stronger was the
date special customer requests and deliver custo- measured tendency. A subset of the scales, as given
mised services (Bitner et al., 1990). in Appendix A, was used to test our hypotheses.
Two graduate students from the hotel school of a Empowerment was measured by Spreitzer’s (1995)
local university visited 27 four- and five-star hotels self-determination sub-scale. This three-item sub-
in the Greater Toronto area and interviewed hotel scale was designed to measure perceived autonomy
employees with drop-off questionnaires. The stu- at work. Power distance was assessed by a total of
dents returned to the hotel a week later to collect five items developed by Brockner et al. (2001). As
the completed questionnaires. A total of 196 predicted, Chinese respondents had a higher power
respondents (74%) out of 264 contacted returned distance score than their Canadian counterparts
their questionnaires with completed information. (t¼7.73, d.f.¼394, Po0.01; M¼4.77 vs 4.02). Cus-
A majority of the respondents (70%) were in the age tomer orientation was tapped by a set of five items
group 21–30 years. Of the respondents, 57% were adapted from Han’s et al. (1998) market orientation
female and 60% had post-secondary education. The scale. The existing literature suggests that customer
respondents had been with their current employers orientation is a key aspect of market orientation
for an average of 3.7 years. (Jaworski and Kohli, 1993). Finally, the measure of
For the survey in the PRC, a commercial market job satisfaction consisted of two items used pre-
research agent was appointed to collect data from viously in Hartline and Ferrell (1996). Descriptive
four- or five-star hotels in Beijing. Out of the 363 statistics of and correlations between the measures
distributed questionnaires, 200 (55%) were are given in Table 3.
returned with completed information. Of the We examined the psychometric properties of the
respondents, 61% were female and 53% of them four measures by putting the 15 measurement
were in the age group 21–30 years. Thirty-seven items into a confirmatory factor analysis. The
percent had completed vocational education and LISREL results indicated an acceptable fit of the
another 31% had received post-secondary educa- four-factor measurement model (w2¼235.06,
tion. The respondents had an average of 4.4 years’ d.f.¼84, CFI¼0.95, NNFI¼0.94, GFI¼0.93,
experience with their current employers. RMSEA¼0.067). All l coefficients were significant
(Po0.001) and were above the 0.40 level. These
Questionnaire and measurements results confirmed that the items fell nicely into
The questionnaire for the survey in Canada was separate scales, demonstrating convergent validity
written in English; it was translated from English of the measures. Discriminant validity was assessed
into Chinese by a doctoral student from China for by constraining the correlation between each pair

Table 3 Means,a standard deviations, Pearson’s correlationsb and reliabilityc

Variable Mean s.d. J D P C PD DC Age Sex


(years)

Job satisfaction (J) 5.15 1.09 0.71


Empowerment (D) 5.09 1.09 0.35 0.78
Power distance (P) 4.40 1.04 0.21 0.05 0.70
Customer orientation (C) 5.72 0.99 0.41 0.18 0.14 0.89
Power distance  empowerment (P  D) 0.06 1.20 0.07 0.07 0.11 0.05 —
Empowerment  customer orientation (D  C) 0.20 1.13 0.05 0.01 0.05 0.05 0.18 —
Age (years) (o20; 21–30; 31–40; 41–50; 51–60; 460) 2.30 0.71 0.12 0.08 0.01 0.03 0.01 0.01 —
Sex (1¼M; 2¼F) 1.60 0.49 0.02 0.03 0.10 0.03 0.06 0.09 0.18 —
Education (Grades 1–6; 7–9; 10–13; vocational; university+) 4.24 0.80 0.06 0.11 0.18 0.04 0.01 0.02 0.04 0.01
a
Scores are based on seven-point scales (1 – strongly disagree; 7 – strongly agree). Mean values of interaction terms are based on deviation scores.
b
Correlations with value Z70.12 are significant at Po0.01 level; Z70.09 are significant at Po0.05 level; Z70.07 are significant at Po0.10 level.
c
Composite reliability values are shown in the diagonal line.

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Empowerment effects across cultures Michael K Hui et al
53

of factors (the f coefficient) to 1.00. w2 difference distance and job satisfaction at the society level
tests indicated that, in each case, the fit of the (Table 2), Study 2 finds an opposite direction for the
constrained model was significantly poorer relationship at the individual level (Table 4). Pre-
(Po0.001) than that of the original model. It could vious researchers have suggested that society- and
therefore be concluded that the correlation individual-level relationships need not correspond
between any pair of constructs was significantly to each other (Schweder, 1973; Leung, 1989).
smaller than 1, demonstrating the discriminant Working in international hotel chains to serve local
validity of the measures. The reliabilities of all the and non-local tourists and business travellers may
four measures were also acceptable. The composite incur relatively higher pay, job status and job
reliabilities were all above 0.70 (Table 3). satisfaction for PRC employees than for Canadian
To check for the common method problem, employees, and this may explain why a positive
principal components analysis was conducted on relationship between power distance and job
all the 108 measurement items in the questionnaire satisfaction is found in Study 2.
as in Greenleaf (1992). The first component with- Two interaction terms – that between empower-
out rotation captured only 23.32% of variance. As ment and power distance, b¼0.12, Po0.05, and
no dominant first component existed (Podsakoff that between customer orientation and discretion,
and Organ, 1986), common method variance b¼0.08, Po0.05, were entered in Step 2 of the
should not be an undue issue in this study. analysis (Model 1b, Table 4). Simple slope analysis
was conducted to interpret these effects (Aiken and
Results West, 1991; Thomas and Au, 2002). The results
Job satisfaction was regressed on empowerment, showed that discretion was positively related to job
power distance, customer orientation and two of satisfaction for individuals low in power distance
the interaction terms. To minimise problems with (1 s.d. below the mean, b¼0.41, Po0.05). The
multicollinearity, deviation scores (raw score minus relationship was still positive but was much weaker
the mean) of the independent variables were used for individuals high in power distance (1 s.d. above
(Aiken and West, 1991). Gender, age and education the mean, b¼0.17, Po0.05). Results also showed
were included in the equations as control variables. that the association between empowerment and
The regression equation was significant when the job satisfaction was stronger for individuals high in
main effect terms were entered in Step 1 (R2¼0.29, customer orientation (1 s.d. above the mean,
Po0.01). As shown in Table 4 (Model 1a), the main b¼0.37, Po0.05) than for individuals low in
effects of empowerment, power distance and customer orientation (1 s.d. below the mean,
customer orientation were all positively significant. b¼0.21, Po0.05). It could therefore be concluded
It is interesting to note that, whereas Study 1 that the moderating effects of power distance and
reveals a negative relationship between power customer orientation on the relationship between
empowerment and job satisfaction were in the
direction as predicted by Hypotheses H2a and H2b.
Table 4 Regression analysis of job satisfaction on empowerment,
power distance, and customer orientation Discussion
This study confirms, at the individual level, the
Predictor Model 1a Model 1b
moderating effects of power distance and customer
Gender (male) 0.01 (0.10) 0.01 (0.10) orientation on the relationship between empower-
Age (years) 0.17 (0.07)* 0.17 (0.07)* ment and job satisfaction. Discretionary power
Education (years) 0.12 (0.06)^ 0.11 (0.06)* tends to have a more pronounced effect on job
Empowerment 0.28 (0.05)** 0.29 (0.05)** satisfaction for service employees who believe in
Power distance 0.13 (0.05)** 0.14 (0.05)** equal power sharing and the delivery of superior
Customer orientation 0.38 (0.05)** 0.39 (0.05)**
customer value. These findings provide support for
Empowerment  0.12 (0.04)**
power distance
our argument that willingness to accept and
Empowerment  0.08 (0.04)* exercise discretionary power and desire to satisfy
customer orientation customer needs and wants are two employee factors
R2 0.29** 0.31** that enhance the effect of empowerment on job
DR2 0.02** satisfaction. Nevertheless, it is conceivable that, in
Note. The values are unstandardised regression coefficients, and values in addition to the innate factors of employees (i.e.
parentheses are standard errors. **Po0.01; *Po0.05; ^Po0.10. customer orientation), situational factors that

Journal of International Business Studies


Empowerment effects across cultures Michael K Hui et al
54

influence the employees’ desire to satisfy customer Canadian subjects than for the PRC subjects,
needs and wants would also significantly moderate especially when the request is accompanied by a
the relationship between empowerment and job good reason. The research hypothesis predicates a
satisfaction. We conducted Study 3 to test this three-way interaction effect:
argument. Furthermore, as the survey data used in
H3b: The interactive effect of empowerment and
Study 2 tentatively pointed in the direction of
request nature on employee satisfaction and
causality, another objective of Study 3 was to
intention to comply with customer request will
provide a more robust test for the causal relation-
be more pronounced for the Canadian subjects
ship between empowerment and job satisfaction.
than for the PRC subjects.
Study 3
Method
Study 3 was an experimental study in which
The study adopted a 2 (empowerment: present or
subjects from Canada and the PRC were asked to
absent)  2 (request nature: with or without good
play the role of a boundary-spanner who had to
reason)  2 (nation: Canada or PRC) full factorial
handle a special customer request that ran counter
design. The first two factors were manipulated
to management guidelines. Two variables were
using information embedded in a scenario that
manipulated in the experiment. Empowerment
described a service encounter between an employee
was manipulated by whether or not discretionary
and a customer of a hotel. Subjects from the two
power was given to the subjects in handling the
nations were randomly assigned to one of the four
customer request. The nature of the request was
scenarios (2 empowerment conditions  2 request
operationalised as whether the customer offered a
nature conditions) and answered questions after
good reason in support of the special request. The
reading the assigned scenario.
study aimed to test the moderating effects of
national culture and the nature of the request on Subjects
the relationship between empowerment and A total of 160 university students (20 subjects per
employee satisfaction. cell) with majors in hotel/hospitality management
As Canada and the PRC represent nations char- participated in this study. The PRC sample con-
acterised by low power-distance and high power- sisted of students from a major university in
distance cultures (Hofstede, 1991; Eylon and Au, Huangzhou and from a major university in Shang-
1999), the Canadian subjects, when compared with hai. The Canadian sample included students from a
their PRC counterparts, should feel more satisfied major university located in eastern Canada. The use
and exhibit a higher intention to accept and of student subjects offers various advantages in
exercise any given discretionary power when cross-cultural studies in which the primary goal is
handling the special customer request. We there- theory testing (Malpass and Poortinga, 1986). Many
fore hypothesise that: extraneous variables can be controlled because
students are more homogeneous as a group than
H3a: The effect of empowerment on employee
ordinary individuals in the PRC and Canada.
satisfaction and intention to comply with the
Typical Canadians differ from typical Chinese in
customer request will be more pronounced for
so many aspects that comparing the typical exem-
the Canadian subjects than for the PRC subjects.
plars of each group would make it next to
A legitimate request motivates people to serve impossible to protect the explanation of power
customers. Smith-Bell and Winslade (1994) have distance on cross-cultural differences. More impor-
shown that legitimate service requests lead health tantly, we considered that using hotel/hospitality
professionals to feel significant service pressure. By management students in the PRC was necessary.
the same token, when a special customer request is This group of professionals-to-be could understand
accompanied by a good reason, service employees the scenarios and respond to them judiciously. In
should feel motivated to comply with the request, common with their Canadian counterparts, their
and should feel more satisfied when they have the training enabled them to give meaningful
discretionary power to do so. As intention to accept responses to the scenario, which was essential for
and exercise discretionary power should be higher maintaining the mundane realism of the experi-
for the Canadian subjects than for the PRC subjects mental task (Aronson and Carlsmith, 1968).
(H3a), the effect of discretionary power on employ- We established the cultural differences between
ee satisfaction should be more pronounced for the the two national groups through a pilot study of 78

Journal of International Business Studies


Empowerment effects across cultures Michael K Hui et al
55

PRC students and 64 Canadian students recruited hypotheses. In the pilot study, we randomly
from the same universities in the PRC and Canada assigned subjects to read one of the four scenarios
as were used for the main study. Power distance was before they were asked to complete a questionnaire
measured using the same five items as in Study 2 that was designed to measure: (a) whether they
(1–5 ratings; 1 – disagree, 5 – agree). As expected, were given discretionary power to handle the
the mean score of the PRC respondents was request; and (b) whether they considered the
significantly higher than that of the Canadian customer to have a good reason for making the
respondents on the power distance scale (M¼3.50 request. The ANOVA results indicated that there
and 3.07; t(141)¼2.41, Po0.01). Therefore, differ- was a significant effect of the empowerment
ences between the PRC subjects and the Canadian manipulation on the perception of discretionary
subjects found in the experiment can be partly power (M¼4.22 vs 3.37; F(1,133)¼8.85, Po0.01)
attributed to their cultural differences in terms of and a significant effect of the request nature
power distance. manipulation on the perception of request reason
(M¼5.13 vs 4.18; F(1,134)¼14.40, Po0.001). No
Service scenarios other main or interaction effects were significant.
The two national groups responded to a question- The manipulations were therefore regarded as
naire written in their native languages. The original effective.
questionnaire was in English and was translated
from English into Chinese by the standard back- Measurements
translation procedure (Brislin, 1980). One of the After reading the scenario, the subjects were asked
four service scenarios was presented at the begin- to complete a short questionnaire consisting of two
ning of the questionnaire. The following scenario is scales. The first scale was a two-item measure
for the condition in which there is empowerment (a¼0.73) of the subjects’ intention to comply with
for the service employee and there is a good reason the customer request: that is, to assign the room to
for supporting the special customer request (see the the customer (seven-point ratings; a higher score
bracketed explanations for details of the other indicated a stronger intention to comply). The
manipulations): second scale was a measure of employee satisfac-
tion, or the extent to which the subjects felt
Suppose you work for a hotel as a frontline worker and your
job is to process and confirm room reservations. One day
satisfied with three different aspects of the task
you receive a telephone call from Mr A, who wants to (a¼0.78): overall, rules and regulations, and the
reserve a room for the next long weekend. Unfortunately, management (seven-point scales; a higher score
the accommodation is fully booked. Mr A tells you that he indicated a higher satisfaction).
and his wife will be very disappointed if they cannot
celebrate their diamond anniversary at your hotel, and asks
for your help to get his reservation confirmed. [The poor
Results and discussion
reason condition has no such statement.] Mr A asks you for The two dependent measures were analysed as a
help to get his reservation confirmed. While you are function of the three experimental manipulations
attempting to reallocate the accommodation arrangement, by 2 (empowerment)  2 (request nature)  2
you find a room available. There are, however, two other (nation) ANOVAs. Results indicated that the main
requests on the waiting list ahead of Mr A. The time has
effects of empowerment (F(1,152)¼6.63, Po0.05)
come for you to decide how to handle this problem. In the
operations manual, the hotel manager states that ‘‘all and request nature (F(1, 152)¼37.14, Po0.001) on
reservations should in principle be handled on a first- intention to comply were significant. Subjects
come-first-served basis, but employees can use their perso- reported significantly greater intention to comply
nal judgement when necessary.’’ [The last phrase was with the customer request when they were given
replaced by ‘and under no circumstances should employees
discretionary power (M¼4.74 vs 4.11) and when the
violate this regulation’ in the empowerment-absent condi-
tion.] request was accompanied by a good reason
(M¼5.17 vs 3.68). The main effects of the three
The results of our second pilot study, using 73 experimental variables on employee satisfaction
PRC students and 69 Canadian students from the were also significant (nation: F(1,152)¼9.04,
same university populations as the main study, Po0.01; empowerment: F(1,152)¼4.93, Po0.05;
validated the effectiveness of our experimental request nature: F(1,152)¼5.18, Po0.05). The sub-
manipulations. The use of a pilot study prevented jects reported higher employee satisfaction when
the subjects in the main study from guessing the they were empowered (M¼4.90 vs 4.57) and when
purpose of the experimental manipulations and our the customer request was backed by a good reason

Journal of International Business Studies


Empowerment effects across cultures Michael K Hui et al
56

(M¼4.90 vs 4.56). These results were similar to


those obtained with intention to comply. Finally,
the PRC subjects (M¼4.95) also reported higher
employee satisfaction than the Canadian subjects 6

(M¼4.51). As mentioned earlier, the effect could be


attributed to the relatively higher job status of hotel

SATISFACTION
employees in the PRC than in Canada. The above
main effects, however, should be interpreted in the
REQUEST
light of the significant two- and three-way interac- 5
WITH REASON
tions reported next.

Hypothesis testing
The two research hypotheses (H3a and H3b) REQUEST
predicted significant two- and three-way interac- WITHOUT REASON
4
tion effects. The results partially confirmed these WITHOUT WITH
predictions. First, the two-way interaction on CANADA
EMPOWERMENT
employee satisfaction was not significant, probably
because this effect is qualified by the significant
three-way interaction (F(1,152)¼4.44, Po0.05).
Interaction contrast analysis (Keppel and Zedeck,
1989) indicated that the interaction between 6
empowerment and request nature was significant
for the Canadian subjects (F(1,152)¼5.58, Po0.05),
SATISFACTION

but not significant for the PRC subjects


(F(1,152)¼0.36, n.s.). Further analysis showed that, REQUEST
WITH REASON
for the Canadian subjects, empowerment signifi-
5
cantly affected employee satisfaction only when
the customer request was backed by a good
reason (M¼5.13 vs 4.35; F(1,152)¼6.93, Po0.01), REQUEST
WITHOUT REASON
as shown in Figure 1. These results revealed that the
interactive effect of empowerment and request
nature on employee satisfaction was more pro- 4
nounced for the Canadian subjects than for the WITHOUT PRC WITH

PRC subjects, as predicted by Hypothesis H3b. EMPOWERMENT


Compared with Chinese, Canadians are more will- Figure 1 The three-way interactive effect of empowerment,
ing to accept and exercise discretionary power, request nature, and nation on employee satisfaction.
and when they can use the power to satisfy a
legitimate customer request, they would become
more satisfied. than for the PRC subjects, providing support for
Furthermore, there was a significant two-way Hypothesis H3a. However, Hypothesis H3b is not
interaction between empowerment and nation on supported. The effect of request legitimacy on
intention to comply (F(1,152)¼4.27, Po0.05), but intention to comply does not vary between the
the three-way interaction is not significant. two cultural groups, although legitimate customer
Simple effect analysis on the two-way interaction request tends to spur empowered Canadians to
(Keppel and Zedeck, 1989) indicated that the comply with customer demand more than non-
Canadian subjects (M¼4.81 vs 3.68; F(1,152)¼5.31, empowered Canadians (M¼6.05 vs 4.28; Table 5).
Po0.05), but not the PRC subjects (M¼4.54 vs Perhaps the manipulation of legitimate request is
4.66; F(1,152)¼0.06, n.s.), reported significantly not strong enough to cause statistical significance
greater intention to comply with the customer on behavioural intent measurement due to its
request when they were given the power to do nature.
so (Figure 2). These results showed that the effect Another interesting result shown in Figure 2 is
of empowerment on intention to comply was that, although the PRC subjects were indifferent to
more pronounced for the Canadian subjects empowerment, their intention to comply with the

Journal of International Business Studies


Empowerment effects across cultures Michael K Hui et al
57

customer request was higher than that of the groups in the willingness to accept and exercise
Canadian subjects in the no-empowerment condi- discretionary power.
tion (M¼4.54 vs 3.68; F(1,152)¼3.08, Po0.1). This
result showed that the PRC subjects were less General discussion
reluctant than their Canadian counterparts to break This paper presents three studies to examine
organisational rules when they deemed it neces- empowerment effects across cultures. The findings
sary. The existing literature provides evidence that of the three studies fall nicely together, reinforcing
Chinese tend to make judgements dictated by each other. To the best of our knowledge, this is the
personal reasons rather than by general rules first paper that has provided unequivocal empirical
(Trompenaars, 1997: Chapter 4). Compared with support for the proposition that the effect of
Canadians, Chinese may feel less concern about empowerment on job satisfaction is dependent on
violating management rules, and hence they may the cultural dimension of power distance. Specifi-
be more flexible in dealing with interpersonal cally, Study 1 uses a large-scale, multi-nation
matters such as satisfying the customer request. survey to show that power distance is a cultural
Accordingly, apart from attitude toward equal value that moderates the effect of job autonomy on
power sharing between supervisors and subordi- job satisfaction. Study 2 confirms the moderating
nates, attitude toward organisational rules may also effect of power distance at the individual level
explain the difference between the two national and demonstrates that customer orientation may
create a drive that entails empowerment beneficial
to job satisfaction. Study 3, an experimental study,
provides causal support to the survey findings in
Studies 1 and 2 and reveals that, apart from innate
values, the nature of a special customer request is a
situational factor that propels the realisation of
5
empowerment benefits. These findings prove that
PRC the employees’ desire to satisfy customer needs and
wants, be it stimulated by innate or by situational
INTENTION

factors, is essential for the successful implementa-


tion of the empowerment approach.
4
CANADA

Managerial implications
Multinational managers should be aware of the
conditions and limitations of empowerment as a
means of influencing employees’ job behaviour in
3 their foreign operations (Hewett and Bearden,
WITHOUT WITH 2001). There is a general consensus that reliance
EMPOWERMENT on bureaucracy and organisational rules is ineffec-
Figure 2 The two-way interactive effect of empowerment and tive for the assurance of quality service delivery
nation on intention to comply with customer request. (Schneider, 1980). Instead of close supervision to

Table 5 Mean scores of intention to comply with customer request and employee satisfaction as a function of customer request,
empowerment, and nation

No empowerment Empowerment No empowerment Empowerment

Intention to comply with customer request


With a reason 4.28 6.05 5.20 5.15
Without a reason 3.08 3.58 3.88 4.18

Employee satisfaction
With a reason 4.35 5.13 4.93 5.18
Without a reason 4.38 4.17 4.60 5.10

Journal of International Business Studies


Empowerment effects across cultures Michael K Hui et al
58

harness employees’ free will, service managers is investigated to understand cross-cultural varia-
should consider empowerment as a solution to tions in employee responses to empowerment.
enhance the job performance and satisfaction of The implications of other cultural values (e.g.
their frontline subordinates (Hartline and Ferrell, Hofstede, 1991; Schwartz, 1994) have not been
1996; Hartline et al., 2000). However, as revealed by fully explored. In particular, individualism–collec-
the findings of the three studies, empowerment has tivism should be studied because it is a prevalent
a stronger effect on job satisfaction in low power- construct that encompasses a wide range of
distance cultures than in high power-distance organisational behaviour. Another limitation of
cultures. Accordingly, multinational service man- our studies is that we adapt measurements from
agers need to be more cautious when planning various sources. The validity of these measures,
to adopt the empowerment approach in nations though proven in other settings, may not be
with high power distance (such as the PRC fully compatible with the service setting of
and Malaysia) because discretionary empowerment, Studies 2 and 3. It is also interesting to note that,
as a management practice, is likely to be incompa- according to the results of Study 3, the employees’
tible with the cultural values of these nations. In attitude toward organisational rules may also
nations where unequal power distribution in explain the variation in empowerment effects
the institutional hierarchy is considered to be the between high power-distance cultures and low
norm, service employees may feel uneasy and power-distance cultures. However, owing to the
exhibit significant reluctance to accept and limited scope of Study 3, more rigorous tests of
exercise discretionary power in performing their this proposition are necessary before any definite
job duties. Hence empowerment may have little, conclusion can be drawn. Lastly, our studies
or even negative, effect on job behaviour (Robert operationalise empowerment as discretionary
et al., 2000). Other management practices, such empower-ment. It is important to note that some
as building and maintaining authoritative but management researchers have expanded the con-
warm, trusting relationships with subordinates, ceptualisation of empowerment beyond discretion-
may prove to be more effective in influencing job ary power and job autonomy. Spreitzer (1995),
behaviour. for example, has conceptualised empowerment
Findings of Studies 2 and 3 suggest that the effect as a psychological construct reflecting an indivi-
of empowerment on job satisfaction also hinges on dual’s feeling of self-control and self-efficacy.
the employees’ desire to satisfy customer needs and Other researchers (e.g. Conger and Kanungo,
wants. Specifically, empowerment tends to produce 1988; Arnold et al., 2000) have also argued that
a more pronounced effect on job satisfaction when empowerment is a concept that captures the
service employees consider the delivery of superior nature of the relationship between managers
customer value to be their primary work goal (Study and their subordinates. Whether cross-cultural
2), and when discretionary power helps to satisfy variation in empowerment effects, as depicted by
unpredictable, but deserving, customer needs our studies, will be upheld when empowerment is
(Study 3). Rigorous recruitment and training are conceptualised beyond discretionary power and job
therefore essential for the effective implementation autonomy is largely unknown, and this deserves
of the empowerment approach (Bowen and Lawler, future research attention. We hope that this study
1992). Building a customer orientation should be a will act as a springboard to stimulate more studies
primary consideration of service managers when based on other methods, cultural values, and
designing their recruitment and training pro- measurements to explore empowerment effects
grammes. Moreover, for service employees whose across cultures.
job nature is simple and routine, tight service
scripts and minimal discretionary power may be
more desirable than empowerment for achieving
high levels of marketing effectiveness and opera- Acknowledgements
tional efficiency (Bowen and Lawler, 1992; Bowen, This study was supported by the Hong Kong Research
1995). Grants Council (Ref. No. 4030/00 H) awarded to the
first and second authors. We thank Ilan Vertinsky, Dora
Limitations and future research Lau, the departmental editor Kwok Leung, and the
One limitation common to our three studies is two anonymous reviewers for their comments on this
that only one cultural dimension (power distance) paper.

Journal of International Business Studies


Empowerment effects across cultures Michael K Hui et al
59

Notes 2
This can be understood intuitively as the following:
1
We also correlated, at the individual level in each of Job satisfaction ¼½other variables
the 42 nations, the scores of job autonomy with þ b1 ðjob autonomyÞ
variables that are expected to exhibit substantial or
þ b2 ðjob autonomy
null relationships. Job autonomy is related to pride in
work (median r¼0.46) and is related moderately to a power distanceÞ
broader feeling of self-control measured by perceived or
life control (median r¼0.22). All coefficients are signifi-
cant at Po0.05. Discriminant validity is shown when Job satisfaction ¼½other variables þ ðb1 þ b2
job autonomy was found to be unrelated to a close, power distanceÞjob autonomy
but different, construct – whether or not one suffered
interference from authorities. Job autonomy was not Given that b1 is 0.30 and b2 is 0.003, the value of
correlated to choice to follow orders (median r¼0.02) (b1 þ b2  power distance) approaches zero when the
and respect for authority (median r¼0.05). power distance score is 104.

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Accepted by Tom Brewer; outgoing Editor, 28 September 2003.

Journal of International Business Studies

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