Intercultural Relations in Asia

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Chapter

7 “Show Me the Money!” Construct and Predictive Validation of the Intercultural Business Corruptibility Scale (IBCS) Chan-Hoong Leong* and Weirong Lin†

ABSTRACT Cross-cultural interaction is an indispensable component of international business development. Senior executives need to negotiate with their overseas partners regularly even if they do not share the same opinion on business ethics or protocols (e.g., offering bribe and guanxi). This experience is often narrated in anecdotal reports by expatriates (usually from developed nations) who managed their businesses in relationship-oriented countries. The current research shows the development of an Intercultural Business Corruptibility Scale (IBCS) — An individual difference measure on the propensity to offer or exchange favors (including the use of bribes) in the management of * SIM University and National University of Singapore, Singapore. † Nanyang Technological University, Singapore. 151

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Leong and Lin transnational business relations. Three studies were performed for construct and predictive validation of the scale. Study 1 correlated the 14-item IBCS scale with the Big Five personality traits and the Multicultural Personality Questionnaire; Study 2 examined IBCS using measurements on Authoritarian Personality, Uncertainty Avoidance, International Orientation and Social Desirability; and Study 3 correlated IBCS with job satisfaction, work involvement and psychological distress among a sample of international managers whom, as part of their job requirement, deal with clients and business partners from other parts of Asia. The overall findings were in line with our expectations. The IBCS has demonstrated construct and predictive validities to be an effective measure of intercultural competency for the Asian region.

INTRODUCTION Imagine you are posted to Malaysia as the regional Business Development Manager for an international mobile phone company. You are currently negotiating a partnership with a local enterprise to provide the necessary infrastructure support to your parent company. Your overseas partner has a significant business operation in Malaysia, including the essential business social networks in the telecommunication supply chain. After a lengthy discussion with your overseas counterpart, a deal was sealed and the two of you celebrated with a toast. During the toast, the local manager kept referring to a particular cell phone model manufactured by your company. You listened with great interest and you wondered why he kept talking about the phone. Intercultural research and training have attracted an immense amount of attention in the recent years as a consequence of globalization. Understanding work behaviors across cultures have important implications to both individual and organizational successes. This includes the management of individual job performance, interpersonal relations with host nationals, and effective socio-psychological adjustment for expatriates and international managers. In the contemporary approach to intercultural research and training, the ability to appreciate cultural differences and to elicit culturally appropriate responses can be broadly predicted by a range of individual differences and competencies. Some of the traits include cultural empathy, open-mindedness, having a non-judgmental attitude, and tolerance for ambiguities (e.g., Van Der Zee and Van Oudenhoven, 2000, 2001).

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Validation of the Intercultural Business Corruptibility Scale 153

Although there are many diagnostic instruments on effective intercultural potentials, the assessment tools are often designed without reference to any particular social or behavioral context. The Multicultural Personality Questionnaire (Van Der Zee and Van Oudenhoven, 2000, 2001), Intercultural Readiness Checklist (Brinkmann, 2001), and Intercultural Adjustment Potential Scale (Matsumoto et al., 2003) are some examples. At the fundamental level, this approach is grounded on a culture-general assumption that certain dispositions (e.g., open-mindedness) are deemed as generic features that can predict successful social, behavioral, and psychological performance across a plethora of situations and cultures. While they are reported as reliable and valid, there is a need to explore beyond the standard context-free measurement in the study on culture-specific outcome of intercultural effectiveness. CULTURAL-LEVEL DIFFERENCES: RELATIONSHIP ORIENTATION In cultures that are high in relationship orientation (i.e., Collectivism, Hofstede, 1980), one ubiquitous feature that is frequently narrated by international managers concerns the endemic practice of offering gifts and other favors in exchange for the services rendered (or hoped to receive) in time to come. The offer (e.g., gifts, kickbacks) is not contractually part of the agreement but there is an implicit norm in support of this convention. Non-conformity to the protocol could be detrimental to the formation and maintenance of collegial business relations and networks. From the perspective of Western developed societies, this form of engagement is at best perceived as an unique allocentric behavior, and at worse a form of outright corruption. Needless to say, the line between social networking and corruption can be thin and blurred, and more so when cultural boundaries are crossed and different belief systems are in place. In the context of acculturation research, the management of cross-cultural interactions in business operations poses an interesting challenge. In countries where relationships are closely intertwined with every sphere of a person’s life and amongst cultures that rated high in

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perceived corruption (e.g., Corruption Perception Index), international managers face a quandary when it comes to doing business across geographic boundaries.1 Do they follow the local customary or should they enforce their business ethics practiced in their culture of origin? In some occasions, bribes can be handed out in the pretence of a “facilitate payment,” a fee that eases business obstacles and is considered “expressions of societal norms and are an essential part of simply ‘doing business’ (Bailes, 2006, p. 295)”. The moral and semantic debate surrounding corrupt practices are beyond the scope of this chapter. Instead, this study will focus on whether the propensity to use culture appropriate behaviors in business networking should be regarded as an essential disposition required for effective cross cultural adaptation, particularly in predicting employee’s job satisfaction and work involvement. The empirical literature on social networking in relationshiporiented cultures seems to suggest that corrupt practices are an indispensable component of doing business. In Mauritius (Napal, 2005), a relationship-oriented country, bribes giving are not evaluated by any objective criteria but it has to be considered in the broader context of duty (i.e., whether it violates an unspoken promise) and cultural relativism (i.e., whether it is culturally or traditionally acceptable). The Mauritius businessman can condone bribery if the there is a customary impetus to do so. This relativist perspective is also in line with Trompenaars’ cultural taxonomy on Particularlism, the tendency to give special considerations to exceptional circumstances “no matter what the rule says” (Trompenaars and Hampden-Turner, 1998, p. 31). At the cultural level, the propensity to bribe someone differs across cultures — compared to the United States and New Zealand, students from Denmark were more receptive to offer a bribe to Asians (assumed to be high in relation orientation) in order to clinch a business deal (Lysonski and Gaidis, 1991). 1

The emphasis on relationship, as measured using Hofstefe’s Collectivism dimension, revealed mixed empirical finding in connection to corruption. At the cultural level, Husted (1999) found no link between the two but a more recent study by Gonzalez-Treja (2007) demonstrated a positive correlation between corruption and collectivism. Societies that are collective oriented tend to be more corrupted, based on Corruption Perception Index.

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Although the practice of social exchange has been noted in the intercultural discourse (both within and beyond the business realm), little has been done to explore the corruptibility trait and how this unique facet of individual difference can affect job attitudes in overseas business development, particularly in countries rated high in relationship orientation and/or among cultures perceived as corrupted. INDIVIDUAL-LEVEL DIFFERENCES: CORRUPTION AS “PERSON-ENVIRONMENT FIT” While there are ample studies that support cultural differences in the perception of business corruption, the empirical evidence at the individual level is limited. For instance, how do we assess corruptibility amongst international managers? How does personal corruptibility link to job attitudes in countries rated high in relationship orientation and corruption? What is the theoretical basis for this association? These questions can be analyzed using Lewin’s (1951) model of human behavior, i.e., B = f (P, E). The individual’s behavior (B) is a function of both personal traits (P) and the characteristics of the environment (E), and by extension, individuals will report the best experience if the environment is most compatible with the person’s dispositions and vice versa (Perrin, 1968). In line with this argument, there are at least two derivative theories of Lewin’s model in social and industrial psychology, the Person-Job (P-J) congruence assumption and the Culture-Fit (C-F) hypothesis. Both espouse the same proposition that the degree of compatibility between dispositions and the environment is essential in maximizing performance. According to the P-J congruence assumption, individuals who possess the relevant skills and competencies that meet the job requirement will demonstrate higher levels of job satisfaction, involvement, and commitment. This hypothesis is intuitive and compelling and empirical studies have largely corroborated this prediction. The degree of P-J fit was strongly related to job performance and satisfaction (Caldwell and O’Reilly, 1990), organizational commitment (Hambleton et al., 2000), empowerment (Brkich et al., 2002), and

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reduced staff turnover (Van Vianen, 2000). The theory provides an overarching framework across different conceptual levels, and similar pattern of findings were observed from research in Person-Group and Person-Organization fit (Kristof-Brown et al., 2002). In the second conceptual framework, the Cultural-Fit (C-F) hypothesis (Ward and Chang, 1999) posits that sojourners will demonstrate better socio-psychological adjustment if there is greater convergence between the person’s dispositions and the normative cultural values endorsed by members of the recipient societies. A handful of empirical studies have demonstrated this relation. Asian international students who had self-construals and communication styles that mirrored the American host nationals reported more positive behavioral and psychological adjustment (Oguri and Gudykunst, 2002). East Asian international students who deviated from the Western normative scores in vertical-collectivism were associated with increased depression (Chirkov et al., 2005). Increased extroversion was traditionally linked to improved socio-psychological adaptation but in a restrictive culture like Singapore, the trait was associated with acculturative distress (Ward and Chang, 1999). Until now, investigations on C-F were performed using sociopsychological adaptation as criterion and none of them have considered work place experience as the outcome measure. In line with the theoretical postulations that underscore P-J and C-F theories, we anticipated a similar conclusion — international managers who show greater openness to corruptible practices will be associated with positive job experience when they interact with business partners from relationship-oriented societies. OBJECTIVES OF CURRENT RESEARCH The current research was aimed at developing and validating an instrument (Intercultural Business Corruptibility Scale, IBCS) that measures corrupt propensity in the context of cross-national business interactions. It comprised of three separate studies with each serving a different purpose. The first study was a construct validation of the proposed measurement, correlating the IBCS with contemporary

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measures of intercultural competency and personality. The second study was an extension of the first; it delved deeper into construct validation by correlating IBCS with other individual differences that characterized people who were high or low in corrupt propensity. In the third and final study, we examined the predictive validity of the scale by correlating international managers’ ratings on IBCS with their job experience, including job satisfaction (i.e., job description index), work involvement and psychological adjustment. Collectively the three investigations will demonstrate the utility of IBCS as an assessment of culture appropriate aptitude required to interact with members from recipient societies that were deemed as relationshiporiented. For convenient sampling, the construct validation of IBCS in Study 1 and 2 will utilize undergraduate students. For the predictive validation exercise in Study 3, an adult sample comprising of international managers and executives were invited for participation. Study 1 Study 1 described the association between IBCS and other measures of individual differences and intercultural competencies. Intercultural effectiveness was defined on the premise of the Multicultural Personality Questionnaire (Van Der Zee and Van Oudenhoven, 2000, 2001); individual differences were measured based on the Big Five theory of personality (NEO-PI; McCrae and Costa, 1992). The Big Five personality model (NEO-PI) comprises five fundamental traits: Neuroticism (N), Extroversion (E), Openness to experience (O), Agreeableness (A), and Conscientiousness (C); N depicts the degree of emotional stability, E demonstrates whether the person is outgoing, O shows the level of receptivity to new experiences, A portrays a warm and affable person, and C describes a meticulous attitude in everyday behavior. The five personality traits are generic assessment of individual differences and this model is known to be reliable and valid across cultures. This framework has previously been used to predict interpersonal behaviors and socio-psychological adjustment in sojourners. Increased N and E were consistently linked to greater socio-psychological difficulties in intercultural transition,

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though the effects of A, O, and C vary across samples (Ward et al., 2004). In the assessment of intercultural competence, O and C were the best predictors of cultural intelligence, i.e., CQ (Moody, 2008). In interpersonal relations, empirical evidence suggests that those who rate high on A are concerned with the need to project a positive and desirable impression (Graziano and Tobin, 2002). The MPQ is an instrument designed to measure cross-cultural effectiveness. The MPQ comprises five distinct dimensions that portray the level of cultural competencies: cultural empathy (CE), openmindedness (OP), social initiatives (SI), emotional stability (ES), and flexibility (F). CE measures the ability to read the thoughts and feelings of people from other cultures. OP reflects the non-judgmental attitude toward people with different social norms and behaviors. SI depicts the use of proactive strategies in forming interpersonal relations and problem solving. ES shows the ability to regulate emotional changes and stressful situations. F represents the capacity to tolerate uncertainties and to adjust one’s behavior where it is appropriate. The construct and predictive validities of the MPQ in the Asian context (Singapore) had been documented in a recent study (Leong, 2007). Empirical studies have shown the MPQ to be a predictor of aspiration to study abroad (Van der Zee and Van Oudenhoven, 2001) and effective cross-cultural adaptation amongst international students (Van Oudenhoven and Van der Zee, 2002). In the expatriate community in Taiwan, SI was positively correlated to psychological wellbeing; high CE was linked to increased life satisfaction; and high F predicted greater job satisfaction and social support from members of the recipient society (Van Oudenhoven et al., 2003). In career guidance, sojourners who rated high in O expressed greater desire to pursue an international career (Van der Zee and Brinkmann, 2004; Leone et al., 2005). Given that MPQ predisposes effective intercultural communication and that the tradition of exchanging favor is an important customary for business development amongst societies that place a premium on connectedness, we should expect to find positive relations between IBCS and all five MPQ dimensions (+). Furthermore, in line with the conceptual framework and evidence in the Big Five,

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A (−) and C (−) should be negatively associated to IBCS, whilst E (+) and O (+) should be positively related to corruption propensity. The (+) link between IBCS and O and OP in both MPQ and NEO-PI will reinforce the conclusion of each other. In summary, Study 1 was part of a larger construct validation study on the IBCS. Method Participants One hundred and twenty-six undergraduates took part in a paperpen survey on “Social behaviors and attitudes”. Participants were first and second year students from the psychology program (at the second author’s university) and they were taking part in this research to fulfill their course credit requirement. Their average age was 20.14 years (SD = 1.78 years), ranging from 16 to 29 years. There were 32 males and 94 females. Only Singapore residents were recruited for this study. Materials The survey comprised three sections. The first section involved demographic data of participants such as age, gender, ethnicity, and course of study. The second section measures of the NEO-PI (McCrae and Costa, 1992) and intercultural competency (Van Der Zee and Van Oudenhoven, 2000, 2001). The IBCS was presented at the final section. The presentation of the three sections was randomized to avoid survey fatigue. Big five personality The 60-item NEO-PI (McCrae and Costa, 1992) measures the profiles of individual differences based on the five fundamental personality dimensions: Neuroticism, Extroversion, Openness to experience, Agreeableness, and Conscientiousness. The Cronbach’s Alphas were found to be reliable, at 0.89, 0.76, 0.75, 0.72, and 0.83, respectively.

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Multicultural personality questionnaire The 91-item instrument is a diagnostic tool for intercultural competencies (Van Der Zee and Van Oudenhoven, 2000, 2001). It was known to be culturally valid and reliable in the Singapore context (Leong, 2007). It contains five distinctive domains of intercultural effectiveness: CE, OP, SI, ES, and F. The Cronbach’s alpha for the five dimensions were reported as 0.88, 0.87, 0.89, 0.84, and 0.77, respectively. Intercultural business corruptibility Scale (IBCS) The initial instrument comprised 18 items generated with the narratives and assistance of international managers who have extensive contacts with people from other Asian countries. It was conceptualized as a univariate dimension, reflecting an individual’s propensity to see bribery and corruption as a part of inevitable business practices in certain parts of the world. It is not a measure of personal involvement in corrupt practices, but an overall attitude towards different cultural norms deployed in transnational interactions and business relations. The items covered a wide range of issues pertinent to social and business conducts, protocols, and appropriateness in offering monetary and non-monetary incentives in different cultural contexts (See Appendix 1). Exploratory factor analysis revealed four-factor dimensions with Eigenvalues of more than 1.00, whereas a scree plot supported only two factors. Confirmatory factor analysis based on a two-factor solution and oblique PROMAX rotation showed that all, except four items, were loaded on two factors that can be delineated based on either positive or negative worded statements. Out of the original pool of 18 items, 14 of them were selected based on the factor analyses. The IBCS was consequently analyzed as a single dimension. It reported a Cronbach’s alpha of 0.80. Increased rating indicates greater permissiveness to using bribes and other means of exchange as a way of establishing business networks across cultures.

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Results The correlation between IBCS, MPQ, and NEO-PI can be found in Table 1. The mean, standard deviation, range, and Cronbach’s alpha for IBCS were reported in Table 2. Increased individual corruptibility was associated with higher levels of social initiatives (+), cognitive flexibility (+), and extroversion (+, p < 0.10). On the other hand, endorsement of IBCS was inversely linked to lower levels of neuroticism (−), agreeableness (−) and conscientiousness (−). The correlational coefficients were only moderate (−0.28 = < r < = 0.31), and thus it was unlikely that the new IBCS measure echoed another personality dimension. Overall, the relations were broadly in line with our expectations and it provided a form of construct validation to the proposed measurement. But contrary to the hypotheses, Openness — measured in both NEO-PI and the MPQ — was unrelated to IBCS. A detailed discussion on the correlational effects will be presented under the general discussion section. Study 2 In Study 2, we examined the relations between IBCS and other contemporary assessments of personality and individual differences. This included authoritarian personality, social desirability, uncertainty avoidance, and international orientation. The authoritarian personality embodies high religiosity, self-righteousness, absolute obedience, and submission to authority figures (Adorno et al., 1950). Social desirability demonstrates a need and attention for social approval (Crowne and Marlowe, 1960). Uncertainty avoidance is characterized by the obsession for planning in order to cope with uncertainties in life (Budner, 1962). International orientation depicts a desire for cross-cultural exposure and learning (Leone et al., 2005). Social desirability (Study 2) and agreeableness (Study 1) share similar theoretical features as both dispositions espouse the need for social approval, including the need for impressionistic, self-favoring bias. As such, the effect social desirability can serve as

*p < 0.05; **p < 0.01; ***p < 0.001.

5

6

7

— 0.14 — 0.20* –0.14 — 0.24** 0.07 0.22* — 0.29** 0.44*** 0.01 0.20* — 0.47*** 0.60*** –0.08 0.18* 0.67*** 0.64*** 0.35*** –0.06 0.20* 0.46*** 0.47*** 0.10 0.20* 0.17 –0.03 0.32*** 0.36*** –0.07 –0.23* 0.09

8

9

10

— 0.65*** 0.31*** 0.43***

— 0.43*** 0.48***

— 0.44***

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— –0.45*** –0.07 –0.21* –0.23* 0.07 –0.21* –0.35*** –0.80*** –0.31***

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— –0.19* 0.15 0.09 –0.28** –0.21* –0.09 0.09 0.20* 0.13 0.31***

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1. IBCS 2. Neuroticism 3. Extroversion 4. Openness 5. Agreeableness 6. Conscientious 7. Cultural emp. 8. Open-mindedness 9. Social initiative 10. Emotional stab. 11. Flexibility

1

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Correlations Between IBCS, NEO-PI and MPQ (Study 1).

Table 1:

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Validation of the Intercultural Business Corruptibility Scale 163 Table 2: Means, SD, Range, Number of Items and Cronbach’s Alphas for IBCS in Study 1–3. No. of No. of Mean participants items 1. IBCS (Study 1) 2. IBCS (Study 2) 3. IBCS (Study 3)

126 117 37

14 14 14

SD

Range

40.13 6.85 24.00−60.00 39.52 6.15 22.00−57.00 38.32 8.48 20.00−59.00

Cronbach’s Alpha 0.80 0.77 0.83

convergent evidence on the properties of IBCS. On the basis of the IBCS conceptual definition, we hypothesize that IBCS will be inversely related to authoritarian personality (−), social desirability (−) and uncertainty avoidance (−), but positively linked to international orientation (+). Method Participants The sample comprised of 117 undergraduates from a psychology program offered in the same university as Study 1. The respondents took part in a survey on “Social attitudes and perceptions” as part of their course credit requirement. The average age was 20.63 years (SD = 1.50), ranging from 19 to 27 years. There were 53 males and 64 females. All respondents were residents of Singapore. Materials Similar to Study 1, the questionnaire comprised of three sections. The first section showed the demographics, indicating the respondents’ age, gender, ethnicity, and the course of study. This was followed by measurements on personality and individual differences in authoritarian personality, social desirability, uncertainty avoidance, and international orientation. The final section comprised of the same 14-item IBCS instrument used in Study 1; it has a Cronbach’s alpha of 0.77 (See Table 2).

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Authoritarian personality The 20-item instrument was based on Adorno’s measure of the authoritarian person. The trait advocates high religiosity, self-righteousness, absolute obedience and submission to authority figures, and showing strong prejudice against deviant and other minority groups (Adorno et al., 1950). The Cronbach’s alpha was reported as 0.73. Higher ratings represent increased gravitation towards authoritarian beliefs. Social desirability The 16-item scale was based on the Crowne and Marlowe’s (1960) conception and measurement of social desirability. The domain measures the need to produce socially acceptable responses. The Cronbach’s alpha was reported as 0.71. A higher score indicates the need for greater social desirability. Uncertainty avoidance The 10-item instrument assessed individual’s propensity to plan ahead of time as a way to cope with uncertainties in life (Budner, 1962). The scale reported a Cronbach’s alpha of 0.56. Increased scores represent greater inclination to avoid uncertainties. International orientation The 7-item instrument was adapted from previous studies related to individuals’ need for international exposure (Leone et al., 2005; Van der Zee and Brinkmann, 2004). Increased ratings demonstrate a greater motivation for cross-cultural experience. The scale reported a Cronbach’s alpha of 0.71. Results The correlations between IBCS and the measures of individual differences can be found in Table 3. The results revealed significant

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Validation of the Intercultural Business Corruptibility Scale 165 Table 3: Correlations Between IBCS and Measures of Individual Differences (Study 2).

4. IBCS 5. Authoritarian personality 6. Social desirability 7. Uncertainty avoidance 8. International orientation †p

1

2

3

4

5

— −0.35*** −0.27** −0.28** 0.18†

— −0.00 0.42*** −0.23*

— −0.17† 0.09

— −0.36***

—

< 0.10; *p < 0.05; **p < 0.01; ***p < 0.001.

correlations between IBCS and authoritarian personality (−), social desirability (−), uncertainty avoidance (−), and international orientations (+, p < 0.10). The endorsement of IBCS was linked to a greater desire for an international career and exposure. In line with our predictions, IBCS was inversely associated with the authoritarian personality, the need for social approval, and the motivation to avoid uncertainty. The results from Study 2 complemented the conclusions from Study 1. Both investigations were based on the assumption of an enduring individual difference measure and the findings on IBCS were consistent with our hypotheses. A critical analysis on the findings in Study 2 will be presented in the general discussion section. Study 3 In the final study, we examined the predictive validity of IBCS using job attitudes as the criteria of intercultural effectiveness; this includes assessments on job satisfaction, work involvement, and psychological well-being. The data was collected from a sample of international managers and executives who were required to work with foreign clients and suppliers from relationship-oriented countries in the Asia Pacific region (e.g., China, Indonesia, Malaysia). In line with the theoretical propositions derived from the Person-Environment behavioral model, we expect individuals who rated high on IBCS to manifest more positive job attitudes and experiences. More precisely,

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in cultures where it is socially legitimate to provide personal incentives beyond what is necessitated in the business contract, international managers who view corruption as an acceptable means for establishing cross-border business networks are more likely to report higher levels of job satisfaction, work involvement, and lower psychological distress. Method Participants Thirty-seven international managers/executives took part in a survey on “Social Attitudes.” The mean age was 34.09 years (SD = 9.84), ranging from 22 to 55 years. There were five males and 32 females. The respondents came from a wide of range of industries, including engineering, finance, manufacturing, and hospitality. As part of their job requirement, they need to interact with foreign clients and suppliers from Asia. Only Singapore residents were recruited. The respondents were matured students who enrolled in a part-time psychology program (i.e., attended evening classes). Materials The survey included questions on the demographic background such as age, gender, the type of industry where the participant was employed, job description index, work involvement, Zung’s Depression Scale, and the IBCS (presented in this order to minimize priming effects). The 14-item IBCS demonstrated a Cronbach’s alpha of 0.83. Job description index The job description index (JDI) is a well-established measurement on workplace satisfaction (Balzer et al., 1997). It is composed of five separate but related dimensions including (i) the nature of one’s current job, (ii) salary satisfaction, (iii) opportunities for promotion, (iv) attitudes

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toward supervisors, and (v) experience with co-workers. In each of the five components, respondents rated their personal satisfaction on five basic elements using a three-point measurement scale: 1 (No), 2 (Not sure), and 3 (Yes). The scores were aggregated as a measure of job satisfaction for each of the five dimensions. For instance, participants rated their experience with co-workers in reference to whether they were Helpful, Boring (inverse), Intelligent, Lazy (inverse), and Responsible. A higher composite score indicates increased satisfaction towards their colleagues. The Cronbach’s alphas for the five job components were reported as satisfactory: the nature of their current job (0.81), salary satisfaction (0.75), opportunities for promotion (0.79), attitudes toward supervisors (0.78), and their experience with coworkers (0.62). Overall, the JDI offers an overview on the workplace experience. The instrument is easy to administer and it is known to be culturally unbiased. Work involvement The 6-item instrument was adapted from Kanungo’s (1982) studies on work alienation. The scale has a Cronbach’s alpha of 0.53. Example items of job involvement include “I’ll stay overtime to finish a job even if I am not paid for it”, and “I usually show up for work a little earlier to get things ready”. Participants responded to the 6item instrument using a 5-point Likert scale ranging from 1(strongly disagree) to 5 (strongly agree). A higher score indicates increased work involvement. Zung’s depression scale The Zung’s Depression Scale (Zung, 1965) provides a general assessment of psychological adjustment. It has been adapted for studies in different sample groups and research contexts. Respondents were asked to indicate how they felt in the past one month on 19 statements. Examples included: “I feel sad” and “I find it easy to do the things I used to do (reverse)”. Respondents rated on a 5-point Likert scale (1-Not at all to 5-Most of the time) how often they experienced

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each item. A higher rating on the measure indicates increased psychological distress. The Cronbach’s alpha is reported as 0.87. Procedure Participants were full-time working adults and part-time students who enrolled in a psychology degree program in the first author’s university. They were invited to take part in a survey on “Social Attitudes” via the student intranet system. The survey was completed electronically. Participation was voluntary and anonymous. To minimize priming effects, we assessed their job attitudes first, followed by the IBCS. Results The IBCS scores were aggregated and correlations between the dependent (IBCS) and independent variables (JDI, Work Involvement, and Zung’s Depression Scale) were performed. Results showed significant pairwise associations between IBCS and the scores on current job satisfaction and work involvement (see Table 4); the relations between IBCS and promotion opportunities and depression were marginally significant (p < 0.10). Higher IBCS ratings were connected to increased job satisfaction, work involvement, perceived opportunities for promotion, and lower levels of psychological distress. On the basis of the results obtained, it was concluded that IBCS demonstrated predictive validity for work attitudes amongst international managers and executives who have regular contact with clients and suppliers from relationship-oriented societies. More specifically, respondents who share a congruent view of corruptibility will manifest more positive experience of job satisfaction and involvement. The finding was consistent with the theoretical propositions in this chapter — IBCS is a reliable and valid assessment of intercultural effectiveness in the context of workplace attitudes involving interactions with people from societies that emphasize interpersonal relations.

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Validation of the Intercultural Business Corruptibility Scale 169 Table 4: Cronbach’s Alphas and Correlations Between IBCS and Job Satisfaction, Work Involvement, and Depression (Study 3).

(1) Job description index (i.e., job satisfaction) Present job Present pay Opportunities for promotion Supervision Co-workers (2) Work involvement (3) Zung’s Depression Scale †

Cronbach’s Alpha

Correlation with IBCS Pearson r

0.81 0.75 0.79 0.78 0.62 0.53 0.87

0.44** 0.23 0.28† −0.01 0.16 0.51** –0.31†

p < 0.10; ** p < 0.01.

GENERAL DISCUSSION The current study sought to construct and validate an intercultural competence assessment tool for international managers and executives who need to interact with business partners from countries that are rated high in relationship orientation, and by extension cultures that are rated high in perceived corruption (Gonzalez-Treja, 2007). In line with the Person-Job congruence theory and the Cultural-Fit hypothesis, it was believed that a corruptible disposition will be associated with a positive job attitude. Working across data from the three studies, the results supported the conception of IBCS and its relations to successful cross-cultural job experience. The IBCS provides an indication of individual’s receptiveness to offer monetary and non-monetary incentives as means to establish business networks in relationship-oriented societies. Study 1 and 2 provided construct validations of the measure. In Study 1, IBCS was connected with two aspects of intercultural competencies — social initiatives and cognitive flexibility. Surprisingly, it did not correlate with open-mindedness in both MPQ and the NEOPI. Speculatively, IBCS is not just a measure of attitudinal differences but more importantly it focuses on behavioral changes to blend in to

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the environment by maintaining a proactive strategy in managing cultural ambiguity e.g., view bribery as a personal gift as opposed to an ethical dogma. Consistent with the hypothesis, IBCS was inversely related to agreeableness and conscientiousness. Respondents who were motivated and disciplined (conscientious), and those who saw themselves as compassionate and affable (agreeableness) rated lower levels of IBCS. As we have seen in Study 2, the link with the latter disposition was corroborated by the association between IBCS and social desirability. Both agreeableness and social desirability were negatively related to IBCS. In summary, Study 1 provided preliminary support for the construct validity of the measurement. The construct validation was further substantiated in Study 2 where the instrument was found to be negatively linked to uncertainty avoidance, authoritarianism, and social desirability. In line with our expectations, respondents who rated high in the three dispositions were less likely to endorse corruption as a means for networking across cultures. In conjunction with the findings from Study 1, the cluster of correlations appeared to stem from the need to be morally, ethically, and politically correct. The aversion for cultural ambiguity (uncertainty avoidance), a leaning toward fascism (authoritarian personality), and the need for social approval (social desirability) deterred the use of questionable practices in managing cross-cultural business network. Last but not the least, IBCS was marginally linked to extroversion and international orientation. This finding suggests that people who are more outward (and international) looking are more cognizant of the need to see corruption as a socially constructed behavior that is influenced by the cultural definitions of righteousness. In a “corrupt” exchange, the reward can be monetary or nonmonetary and it is often disguised as a “token of appreciation” for the person credited for facilitating the transaction. Of course, corruption is not confined to or the exclusive by-product of relationshiporiented societies. It is, however, undeniable that this utilitarian exchange is an endemic feature of doing business in an environment that puts a high premium on connectedness, while at the same time this ubiquitous attribute is not always fully understood by international managers who are raised under a Western-style meritocratic

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system.2 With this perspective in mind, it is futile to demarcate what is considered a bribe and a polite gesture. In most circumstances, the appropriate tactic is to regard the exchange as socially legitimate, sanctioned by the cultural forces that underscore societal norms. The relations between IBCS and the cultural competencies and individual differences corroborated these assumptions. Indeed, in the final study on the predictive validation of IBCS (Study 3), the instrument performed in line with our anticipation for job attitudes and psychological adjustment. The assumption is anchored on the Person-Environment model, Person-Job congruence theory, and the Culture-Fit hypothesis. To put it simply, job satisfaction (and by extension, psychological distress) is a function of the degree of congruence between the cultural environment (i.e., corruption as a quintessential social requisite) and the individual’s disposition toward corruptibility. A greater similarity between the two orientations will predict increased intercultural effectiveness. IBCS AS CULTURE-SPECIFIC MEASURE OF INTERCULTURAL EFFECTIVENESS In the contemporary assessment on intercultural effectiveness, the culture-general perspective dominated the theorization and measurement of competency. The importance of culture-specific effects, while acknowledged in the research models, has received scant attention in empirical studies. The use of monetary and non-monetary incentives as means to forge business partnership is an excellent example of this culture-specific requirement. In the literature on cross-cultural interaction, the distinction between social networking and corruption is often blurred and contaminated by the social lens that defined what is acceptable and what is not. The emphasis for connectedness in some societies ensues that the tradition of exchanging favors is entrenched as a normative strategy for international managers who do business in 2

Although Singapore is largely Asian, the approach in corporate governance for both public and private sectors are strongly influenced by Western management ethos (e.g., meritocracy).

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these countries. For them to succeed, they need to appreciate and practice the tactics where necessary. In the perspective of Western nationals, to offer (or accept) personal incentives beyond the contractual agreement is typically regarded as inappropriate and is against conventional business ethics. The current chapter challenges this culture-general assumption and postulates the need to consider the social construction of material exchange (i.e., bribe and corruption) in the realm of transnational trade and interactions. The results provided empirical support for the PersonEnvironment model, including the Person-Job congruence theory and the Culture-Fit hypothesis. In the current study, job attitudes (satisfaction and involvement) and experience (psychological distress) were defined as the criteria of adjustment. The degree of congruence between individual’s attitudes toward corruption and the norms practiced in the partnership society correlated with the outcome of acculturation. International managers who exhibited the corruptibility trait reported higher levels of job satisfaction, work involvement, and lower degree of psychological symptomatology when doing business partners from relationship-oriented countries. Incidentally, many of these countries are also rated higher in perceived corruption (Gonzalez-Treja, 2007). Last but not the least, it should be emphasized that the argument for the culture-specific corruptible disposition is a target-specific and geographically limited personality construct. It is unlikely that the trait will have a positive influence in negotiations among rationalminded, legal-centric societies. Further, the effectiveness of the instrument is potentially confined to partners from different cultures where the different cultural backgrounds coverage. The extension of the IBCS or the application of the Person-Environment fit model beyond the realm of intercultural contact should be explored in future studies. SUMMARY AND LIMITATIONS Taken together, the three studies demonstrated the utility of the IBCS as an assessment of individual competency for the management

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of business interactions in different societies. Notwithstanding the theoretical contribution, there are limitations that need to be addressed. First, other than Study 3, the investigations relied heavily on undergraduates. More international managers should be surveyed for a more comprehensive understanding. Second, comparative studies should be performed with people from different cultural backgrounds, for instance, between rational- and relational-oriented societies. A corollary of the Person-Environment fit model would suggest a lower aggregated score among respondents from the former vis-à-vis those from the latter group. Third, additional predictive validation of the IBCS should be performed using job performance as the criteria instead of job attitudes. The effects of job performance will offer more compelling evidence in support of the conceptual foundation of the IBCS. In summary, the IBCS offers an indigenous assessment of competency in adopting culturally appropriate responses to establish business network among relationship-oriented societies. The opportunities for further development on this culture-specific instrument are enormous considering that the driver of economic growth in the near future is centered on Asia, a region recognized for its emphasis on relationships that are largely perceived as corrupted according to Western standards. REFERENCES Adorno, TW, E Frenkel-Brunswik, DJ Levinson and RN Sanford (1950). The Authoritarian Personality. New York: Harper. Bailes, R (2006). Facilitation payments: Culturally acceptable or unacceptably corrupt? Business Ethnics: A European Review, 15(3), 293–298. Balzer, WK, JA Kihn, PC Smith, JL Irwin, PD Bachiochi, C Robie et al. (1997). Users’ Manual for the Job Description Index and the Job in General Scales. Bowling Green OH: Bowling Green University. Brkich, M, D Jeffs and SA Carless (2002). A global self-report measure of person-job fit. European Journal of Psychological Assessment, 18(1), 43–51. Brinkmann, U (2001). The Intercultural Readiness Check. The Netherlands: Internal Publication, Intercultural Business Improvement, Laren. Budner, S (1962). Intolerance of ambiguity as a personality variable. Journal of Personality, 30, 29–50.

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Caldwell, DF and CA O’Reilly (1990). Measuring person-job fit with a profilecomparison process. Journal of Applied Psychology, 75(6), 648–657. Chirkov, VI, M Lynch and S Niwa (2005). Application of the scenario questionnaire of horizontal and vertical individualism and collectivism to the assessment of cultural distance and cultural fit. International Journal of Intercultural Relations, 29, 469–490. Crowne, DP and D Marlowe (1960). A new scale of social desirability independent of psycho-pathology. Journal of Consulting Psychology, 24, 349–354. Gonzalez-Treja, ES (2007). Corruption and culture: A relationship comparison between 1996 and 2004. Central Business Review, 27, 23–28. Graziano, WG and RM Tobin (2002). Agreeableness: Dimensions of personality or social desirability artifact? Journal of Personality, 70(5), 695–727. Hambleton, AJ, T Kalliath and P Taylor (2000). Criterion-related validity of a measure of person-job and person-organization fit. New Zealand Journal of Psychology, 29(2), 80–85. Hofstede, G (1980). Cultural Consequences: International Differences in Work Related Values. Beverly Hills: Sage. Husted, BW (1999). Wealth, culture and corruption. Journal of International Business Studies, 30(2), 339–360. Kanungo, R (1982). Work Alienation: An Integrative Approach. New York: Praeger. Kristof-Brown, AL, AE Colbert and KJ Jansen (2002). A policy-capturing study of the simultaneous effects of fit with jobs, groups, and organizations. Journal of Applied Psychology, 87(5), 985–993. Leone, L, KI Van der Zee, JP Van Oudenhoven, M Perugini and AP Ercolani (2005). The cross-cultural generalizability and validity of the multicultural personality questionnaire. Personality and Individual Differences, 38(6), 1449–1462. Leong, C-H (2007). Predictive validity of the multicultural personality questionnaire: A longitudinal study on the socio-psychological adaptation of Asian undergraduates who took part in a study-abroad program. International Journal of Intercultural Relations, 31, 545–559. Lewin, K (1951). Field Theory in Social Science: Selected Theoretical Papers. Westport, CT: Greenwood Press. Lysonski, S and W Gaidis (1991). A cross-cultural comparison of the ethics of business students. Journal of Business Ethics, 10(2), 141–150. Matsumoto, D, JA LeRoux, M Iwamoto, JW Choi, D Rogers, H Tatani et al. (2003). The robustness of the intercultural adjustment potential scale (ICAPS). International Journal of Intercultural Relations, 27, 543–562. McCrae, RR and PT Costa Jr (1992). Normal personality assessment in clinical practice: The NEO personality inventory. Psychological Assessment, 4, 5–13. Moody, MC (2008). Adaptive behavior in intercultural environments: The relationship between cultural intelligence factors and big five personality traits. Unpublished dissertation, The George Washington University.

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Validation of the Intercultural Business Corruptibility Scale 175 Napal, G (2005). Is bribery a culturally acceptable practice in Mauritius? Business Ethnics: A European Review, 14(3), 231–249. Oguri, M and WB Gudykunst (2002). The influence of self construals and communication styles on sojourners’ psychological and sociocultural adjustment. International Journal of Intercultural Relations, 26, 577–593. Perrin, LA (1968). Performance and satisfaction as a function of individual-environment fit. Psychological Bulletin, 69, 56–58. Trompenaars, F and C Hampden-Turner (1998). Riding the Waves of Culture, 2nd ed., London: McCraw Hill. Van Vianen, AEM (2000). Person-organization fit. Personnel Psychology, 53, 113–149. Van der Zee, KI and U Brinkmann (2004). Construct validity evidence for the intercultural readiness check against the multicultural personality questionnaire. International Journal of Selection and Assessment, 12(3), 285–290. Van der Zee, KI and JP Van Oudenhoven (2000). The multicultural personality questionnaire: A multidimensional instrument of multicultural effectiveness. European Journal of Personality, 14(4), 291–309. Van der Zee, KI and JP Van Oudenhoven (2001). The multicultural personality questionnaire: Reliability and validity of self- and other ratings of multicultural effectiveness. Journal of Research in Personality, 35, 278–288. Van Oudenhoven, JP and KI Van der Zee (2002). Predicting multicultural effectiveness of international students: The multicultural personality questionnaire. International Journal of Intercultural Relations, 26, 679–694. Van Oudenhoven, JP, S Mol and KI Van der Zee (2003). Study of the adjustment of Western expatriates in Taiwan ROC with the multicultural personality questionnaire. Asian Journal of Social Psychology, 6(2), 159–170. Ward, C and WC Chang (1999). Cultural fit: A new perspective on personality and sojourner adjustment. International Journal of Intercultural Relations, 21(4), 525–533. Ward, C, C-H Leong and ML Low (2004). Personality and sojourner adjustment: An exploration of the Big Five and the cultural fit proposition. Journal of CrossCultural Psychology, 35(2), 137–151. Zhung, WWK (1965). A self-rating depression scale. Archives of General Psychiatry, 12, 63–70.

APPENDIX 1: PERCEPTION OF BUSINESS RELATIONS This section is concerned with how individuals view the conduct of business network relations. On a scale of 1(Strongly disagree) to 5(Strongly agree), indicate your opinion on each statement by ticking the correspondent box.

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1 — Strongly disagree; 2 — Disagree; 3 — Neither; 4 — Agree; 5 — Strongly agree 1 2 3 4 5 6 7 8 9 10 11

12 13 14

Business corruption is inevitable in some cultures. When dealing with a business partner from abroad, it is important to inform the relevant authorities if the overseas partner asks for a bribe. (inverse) Business negotiations, whether performed locally or overseas, should observe a standard form of protocols. (inverse) In some countries, it is alright to pay someone extra in order to get things done quickly even if the law forbids such practices. I will not compromise my moral and business ethics for the sake of increasing business sales. (inverse) Giving expensive gifts to business clients and partners is an acceptable form of business practice in some countries. When doing business in an overseas country, it is important to adopt the local business ethics and practice even if you do not agree with it. The rules governing ethical business transactions change from one culture to another. Business partners and clients from overseas should be treated the same way like the local partners and clients. (inverse) One should observe strict business ethics even if doing business in an overseas country. (inverse) When doing business with a foreign-based partner, it is alright to offer a bribe to that person if the culture in that country is known to be open to that practice. It is important to blend in with the culture that you do business with, even if it means to be biased in offering business contracts. There should be standard business ethics and protocols for all countries. (inverse) Moral and ethical standards should be observed at all times when doing business in a foreign country. (inverse)