Showing papers in "Journal of International Business Studies in 2015"

The born global firm: An Entrepreneurial and capabilities perspective on early and rapid internationalization

Abstract: Our 2004 Journal of International Business Studies article, “Innovation, Organizational Capabilities, and the Born Global Firm” provided a framework for the phenomenon of early and rapid internationalization among young, entrepreneurial firms. This work can be characterized as an integration of marketing, entrepreneurial, and capability-based thinking around exporting, positioned as the born global exporter. The article also reported findings from a national study of start-up firms that expanded abroad early in their evolution. In the present commentary, we reflect on the contributions of the 2004 article, review the scholarship on the topic over the past decade, and offer suggestions for future inquiry. While the incidence of early internationalization by firms was a novel concept two decades ago, today such firms are found in abundance in many countries. Yet many unresolved research questions remain, including the crucial topic of what happens to “born global” firms as they grow and mature over time. Similarly, the issue of why some firms internationalize early, others late in their evolution, and still others choose to remain local, is a fundamental question for international business scholarship.

Institutions and social entrepreneurship: The role of institutional voids, institutional support, and institutional configurations

Abstract: We develop the institutional configuration perspective to understand which national contexts facilitate social entrepreneurship (SE). We confirm joint effects on SE of formal regulatory (government activism), informal cognitive (postmaterialist cultural values), and informal normative (socially supportive cultural norms, or weak-tie social capital) institutions in a multilevel study of 106,484 individuals in 26 nations. We test opposing propositions from the institutional void and institutional support perspectives. Our results underscore the importance of resource support from both formal and informal institutions, and highlight motivational supply side influences on SE. They advocate greater consideration of institutional configurations in institutional theory and comparative entrepreneurship research.

Accessing vs sourcing knowledge: A comparative study of R&D internationalization between emerging and advanced economy firms

Abstract: Research and development (R&D) internationalization is on the rise for advanced economy multinationals (AMNEs) as well as emerging economy multinationals (EMNEs). We study EMNE R&D internationalization by comparing it to that by AMNEs in the context of an emerging, knowledge-intensive industry. We find that these two are fundamentally different processes. While the internationalization of AMNEs’ R&D activities can largely be explained in terms of the twin strategies of competence exploitation and competence creation, EMNE R&D internationalization is rooted in the firms’ overall catch up strategy to get on par with industry leaders. An in-depth comparison of knowledge flows reveals that within AMNEs, headquarters often serves the primary source of knowledge for R&D subsidiaries. In contrast, within EMNEs, headquarters accesses knowledge from R&D subsidiaries in advanced economies for innovation catch-up. Within this dichotomy, the innovative capabilities of EMNE headquarters develop more slowly and with greater difficulty than those of AMNE subsidiaries.

Towards a more balanced treatment of culture in international business studies: The need for positive cross-cultural scholarship

Abstract: The results of a content analysis of 1141 articles published in the Journal of International Business Studies over a 24-year time period (1989–2012) reveal that a pervasive tendency exists in the international business (IB) literature towards emphasizing the adverse outcomes associated with cultural differences more than the positive effects. We argue that this imbalance is not an accurate reflection of the reality of cross-cultural contact in IB and that it has hindered our understanding of the processes and conditions that help organizations leverage the benefits of cultural differences in a wide range of contexts. We offer several explanations for the predominance of the negative over the positive in theory and research on culture in IB; and, using a Positive Organizational Scholarship lens couched in the context of March’s (1991) exploration vs exploitation organizational learning framework, highlight a complementary perspective, namely the idea that cultural differences can be an asset, not just a liability in a range of IB contexts. We conclude by offering an integrative framework within which both positive and negative effects of cultural differences can be understood and provide a road map for future research on culture in IB.

Re-thinking research on born globals

Abstract: Knight and Cavusgil’s Journal of International Business Studies Decade Award-winning article offers numerous contributions to international business research. As one example, it advances cross-disciplinary conversation about entrepreneurial internationalization. A critical review of their study reveals, however, that certain findings require reinterpretation. This commentary does so, discussing the resultant implications and the question of when it is (in)appropriate to use the term “born global”. Parts of Knight and Cavusgil are then used as a foundation to identify research questions at the level of the firm. Finally, points from Cavusgil and Knight’s retrospective are used to argue that we need greater understanding of the individual(s) that are central to the firm’s internationalization behaviour. Suggestions for research are made by drawing on concepts and theory from the entrepreneurship, innovation and psychology literatures.

Born globals and international business: Evolution of a field of research

Abstract: Knight and Cavusgil’s award-winning article has played an important role in the development of the growing body of research on companies that internationalize early and rapidly. These “born global” firms represent important contributors to many economies, often as key players in ecosystems that support large multinational enterprises. Despite their growing importance, our understanding of how and why these firms develop and implement their internationalization strategies, and what makes them successful, remains incomplete. Addressing such questions has contributed substantially to the development of the research domain of international entrepreneurship (IE), which focuses on entrepreneurial aspects of doing business across borders, in the context of both small and large firms. While IE is much broader than born globals, these firms are central to the IE domain and the impact of the Knight and Cavusgil paper has helped to develop a stronger awareness of the important linkages and intersections between IE and the wider international business research community. We reflect on the important contribution of this paper, and suggest some directions for the future development of research into firms that choose to operate internationally practically from the start of their operations.

Managerial cognition and internationalization

Abstract: How do the senior decision-makers within a multinational enterprise (MNE) think through and determine an internationalization decision? Despite the cognitive foundations of several key constructs, standard internationalization models do not explicitly incorporate managerial cognition. We argue that the boundedly rational decision-maker is underspecified in international business models and this oversight contributes to weak empirical findings on experience, learning, internationalization strategy and MNE performance. Drawing on these extant models, we identify seven knowledge domains and interdependencies that may make up decision-makers’ mental models. Granted rare access to senior executives and board members engaged in a foreign direct investment decision, we find substantial heterogeneity in the mental models these individuals used to make sense of the opportunity. This variance aligns with differences in individuals’ experience along four dimensions: international breadth, depth, diversity and prior strategic decision-making. We argue these cognitive processes – how individuals exercise judgment about information search parameters, assessment and decision integration, and how decision teams coalesce in their thinking – are crucial microfoundations for modeling heterogeneity in firm-level internationalization strategies and performance.

Values, schemas, and norms in the culture–behavior nexus: A situated dynamics framework

Abstract: International business (IB) research has predominantly relied on value constructs to account for the influence of societal culture, notably Hofstede’s cultural dimensions. While parsimonious, the value approach’s assumptions about the consensus of values within nations, and the generality and stability of cultural patterns of behavior are increasingly challenged. We review two promising alternatives – the constructivist approach centering on schemas and the intersubjectivist approach centering on norms – and the evidence that demonstrates their usefulness in accounting for international differences in the behavior of managers, employees, and consumers. We propose a situated dynamics framework, specifying the role of values, schemas, and norms in accounting for cultural differences, and delineating conditions under which each causal mechanism is operative. Values play a more important role in accounting for cultural differences in weak situations where fewer constraints are perceived; schemas play a more important role when situational cues increase their accessibility and relevance; and norms play a more important role when social evaluation is salient. Directions for future research based on this integrative framework and its implications for the measurement of culture and application in IB are discussed.

Cultural intelligence: A theory-based, short form measure

Abstract: This article reports the development and validation of a theory-based, short form measure of cultural intelligence (SFCQ). The SFCQ captures the original theoretical intent of a multifaceted culture general form of intelligence that is related to effective intercultural interactions. The validity of the scale is established with 3526 participants in five language groups from around the world. Results provide evidence for construct and criterion-related validity of the measure, and indicate that cultural intelligence is a single latent factor reflected in three intermediate facets. In support of construct validity the measure is modestly related to but distinct from emotional intelligence and personality and correlates positively with several indicators of multicultural experience. With regard to criterion-related validity, it relates as predicted to several dimensions of intercultural effectiveness. Implications for the measurement and understanding of culture and the influence of culture on management practice are discussed.

An anatomy of state control in the globalization of state-owned enterprises

Abstract: Integrating agency theory with institutional analysis in international business, we propose a state-control perspective to analyze government-control mechanisms in emerging economies’ globalization of state-owned enterprises (SOEs). We identify two types of state control that influence SOEs’ globalization decisions and the degree of globalization (DOG): state ownership control and executives’ political connections, both of which are contingent upon the home country’s evolving institutional environments. Using a two-step corporate globalization decision model and 17,272 firm – year observations of non-financial, Chinese-listed companies, we find a strong impact of both types of state control on SOEs’ globalization, although the impacts differ between the periods before and after domestic governance reform and across different globalization decision steps. The diminishing impact of executives’ political connections and the increasing impact of state ownership control on firms’ DOG demonstrate the evolving relationship between the state and the managers, as well as the dynamics of state control in globalizing SOEs.

Yes, we really do need more entry mode studies! A commentary on Shaver

Abstract: In a recent commentary published in this journal, Shaver raises the provocative question of whether we need more entry mode studies. After assessing the reasons for Shaver’s doubts and further developing his broad research suggestions, we conclude that this question should be answered affirmatively. We derive three important questions for future entry mode research: (1) What determines the evolution of operations resulting from suboptimal mode choices? (2) What causes the replication of past mode choices? (3) How is the entry decision process structured? Focusing on these questions should assure a bright future for entry mode research.

Consumer ethnocentrism: Reconceptualization and cross-cultural validation

Abstract: Consumer ethnocentrism (CE) is a popular construct in international marketing research and is generally measured using the CETSCALE, a reliable scale with proven predictive validity but with limited evidence about its construct validity, dimensionality and cross-cultural measurement invariance. This note addresses these gaps by reconceptualizing CE as an attitude construct consisting of three dimensions: (1) affective reaction, (2) cognitive bias and (3) behavioral preference. A revised CE scale (CES) is developed and tested using two empirical studies with adult consumers from four different countries (China, India, UK and USA), showing that CES is a reliable, valid and cross-culturally invariant scale and it explains greater variance than the CETSCALE and other similar scales, in customer evaluations and behavioral intentions for a wide range of products and services.

Utilizing the broader agency perspective for studying headquarters–subsidiary relations in multinational companies

Abstract: The nature of global business today increases the complexity of multinational companies and highlights the challenges of managing headquarters–subsidiary (HQ–Sub) relationships. We identify key unresolved issues in HQ–Sub relations including closing the gap between headquarters’ expectations and subsidiary performance, managing the nested hierarchical relationships across multiple organizational layers, and aligning these relationships across diverse subunits embedded in different social contexts. We propose that agency theory, particularly its more recent progressions, can advance our understanding of these issues and we offer a perspective to guide such research. We discuss several research implications of the static bilateral, static multilateral, dynamic, and social and contextual streams of agency theory.

Why and how does shared language affect subsidiary knowledge inflows? A social identity perspective

Abstract: Extending existing international business (IB) research, we conceptualize shared social identity as an outcome rather than only an antecedent of multinational enterprise knowledge flows to provide an alternative reason for why such knowledge flows occur. We further argue that shared language among subsidiary and headquarters (HQ) managers is an insufficient condition for subsidiary knowledge receipt. Accordingly, we develop a moderated mediation model at the subsidiary level to examine how shared language affects subsidiaries’ tacit knowledge inflows from HQ. Specifically, we study (1) whether this relationship is mediated by the extent to which subsidiary managers share HQ goals and vision, and the extent to which Human Resources decisions are centralized at HQ; and (2) whether subsidiary type (greenfields vs acquisitions) moderates these mediated relationships such that in both cases the mediation will be stronger in foreign acquisitions compared with foreign greenfields. Building on a sample of 817 subsidiaries in 9 countries/regions and a novel subjective measure of shared language, we find support for our model. Implications for research on HQ–subsidiary knowledge flows, social identity theory and the literature on sociolinguistics, and international Human Resource Management are discussed and managerial implications outlined.

Beyond anger: A deeper look at consumer animosity

Abstract: Grounded in cognitive-affective theories of emotion, an extended conceptual framework of consumer animosity is developed that (1) distinguishes between consumers’ cognitive appraisal of the international dispute and the resulting emotional response, (2) expands from a valence-based approach to consider the differential effects of agonistic (i.e., anger) and retreat emotions (i.e., fear), and (3) examines three distinct consumer coping processes (product avoidance, negative word of mouth (NWOM), product quality judgment). A cross-cultural test of the framework among Chinese (toward Japan) and American (toward Russia) consumers supports the mediational role of emotions, and finds that agonistic emotions are related to NWOM and product avoidance, but not product quality judgment. In contrast, retreat emotions are related to product avoidance and product quality judgment, but not NWOM. The findings provide guidance for international brand managers on recognizing and detecting adverse sentiments toward their country of origin and accordingly modify their international brand strategy.

Conceptualizing and measuring culture in international business and management: From challenges to potential solutions

Abstract: Understanding the influence of culture on business operations has been one of the most enduring components of international business (IB) and international management (IM) theorizing and empirical investigation. While several critiques and debates questioned the significant progress made in this domain, the special issue we introduce here is meant to demonstrate that further advancement on how we conceptualize and measure culture is not only needed, but also possible. We provide an overview of past and current approaches in the measurement of culture in IB/IM and the challenges associated with these approaches, and emphasize the important, yet insufficiently acknowledged, link between the theoretical conceptualization of culture and its measurement. We then introduce the four articles included in the special issue and highlight how they break away from the “addiction” to approaches that have been very useful in getting where we are today, but that might not always be useful in advancing knowledge beyond what we already know. Last but not the least, we offer our own perspective on promising directions in conceptually and methodologically rethinking the study of culture in IB and IM.

Political risk and dividend policy: Evidence from international political crises

Abstract: We examine the impact of political risk on firms’ payout policy. Using a large international sample across 35 countries over the period from 1990 to 2008, we find that global political crises raise the market perceived uncertainty and cost of external financing. Using crisis events as a proxy for political risk, we document that past dividend payers are more likely to terminate dividends and that non-payers are less likely to initiate dividends during periods of high political risk. These findings suggest a precautionary incentive of managers in response to political shocks. Further analysis shows that the effect of political risk on payout policy is stronger for multinational corporations, but can be attenuated by country-specific institutional settings, such as more stable political systems and stronger investor legal protection.

The effects of linguistic distance and lingua franca proficiency on the stake taken by acquirers in cross-border acquisitions

Abstract: We study the effects of linguistic distance and lingua franca proficiency on the equity stake taken by acquirers from 67 countries in 59,092 acquisition targets in 69 host countries. We theorize and find that acquirers take lower equity stakes in foreign targets when linguistic distance and differences in lingua franca proficiency between them are high, and take higher stakes when the combined lingua franca proficiency of the parties is high. We also find that linguistic and cultural distance reduce the impact of the combined lingua franca proficiency of the parties on the level of equity taken, which shows that the effective use of a lingua franca is affected by the native tongues and cultures of the parties. Our results clearly demonstrate that governance research and international business studies can benefit from incorporating language into their explanatory models.

Seeking commonalities or avoiding differences? Re-conceptualizing distance and its effects on internationalization decisions

Abstract: Past research established distance’s key influence on internationalization. However, theoretical issues, methodological challenges, and inconsistent results hinder scholarship on why distance plays such an influential role. To address these problems, we draw from cognitive research on similarity comparisons to re-conceptualize distance and test a model of internationalization decisions. Analyzing the verbal protocols of executives considering a series of internationalization opportunities, we demonstrate that, over and above objective distance indicators, considerations that reduce distance (commonalities) and considerations that augment distance (differences) have distinct effects on decisions of where, when, and how to internationalize. As such, our study contributes new insights for understanding the nature and effects of distance, across different dimensions of distance and internationalization decisions. Moreover, internationalization theories have come to emphasize different theoretical rationales for explaining the influential role of distance on different decisions. By integrating these rationales together with the notion that distance-reducing commonalities and distance-augmenting differences have distinct implications for internationalization decisions, we introduce the notion that it is not only the addition of distance considerations that matters but also the directionality of such changes. Doing so, our study points to new theoretical and methodological insights to help address prior criticisms and advance future research.

SME internationalization modes in the German biotechnology industry: The influence of imitation, network position, and international experience

Abstract: In this article we reveal how network-enabled imitation processes impact young small- and medium-sized enterprises (SMEs) internationalization, and how a firm’s network position as well as its experiential knowledge moderate imitative behavior in internationalization modes. Building on institutional, network, and organizational-learning theory, we suggest that firms imitate the internationalization modes of their peers in their network. Moreover, we argue that a firm’s imitation propensity depends on two important boundary conditions: network position and past experience. Applying a longitudinal event history analysis to analyze the complete population of 977 German biotechnology firms between 1996 and 2012 largely supports our hypotheses. Our findings reveal that firms imitate the internationalization modes of their peers in a precise manner. This implies that the imitation of others can initially serve as a presumably convenient low-risk shortcut to a planned or experience-driven internationalization process. Furthermore, our results confirm that this imitation process is channeled through formal network relations and that central network positions that are associated with superior information access, enhanced legitimacy, and status may promote deviating behavior. Acknowledging the interplay of different learning sources, our findings additionally show that initial internationalization mode choices of SMEs can have a lasting effect on subsequent internationalization behavior. Overall, our study contributes to a more nuanced view of imitative behavior of internationalizing SMEs and its boundary conditions, and highlights future research opportunities that exist for considering imitation and its implications in international business research.

When do international human capital enhancing practices benefit the bottom line" An ability, motivation, and opportunity perspective

Abstract: We study the conditions under which firms can capitalize on their international human capital (IHC). Using the ability–motivation–opportunity (AMO) perspective we conceptualize IHC as ability, collaborative climate as motivation, and the firm’s level of internationalization as opportunity. We test three alternative AMO models – the additive model (main effect), the combinative model (two-way interactions), and the multiplicative model (a three-way interaction). Using a cross-industry sample of South Korean firms, we find support for the multiplicative model. Specifically, the relationship between IHC enhancement practices and firm performance is significant and positive only when both collaborative climate and internationalization are high.

Mapping India’s regional subcultures: Implications for international management

Abstract: As India continues to emerge as a global economic player, scholars and practitioners increasingly need to understand the cultural heterogeneity within this large and populous nation Based on Lenartowicz and Roth’s framework of culture assessment, we have identified nine distinct subcultural regions of India and used explanations grounded in functional and neo-institutional theories to account for the origin and maintenance of cultural distinctiveness of these regions Further, we developed seven cultural value dimensions for the Indian society and used these to hypothesize and empirically test the existence of cultural differences within India Results supported our hypothesized arguments This study advances our knowledge of how global functional and institutional forces have combined with national forces to shape India’s overall culture and how more local forces have shaped its regions Methodologically, it identifies and develops measures that specifically reflect the values of individuals living in India and uses these to assess intra-national cultural differences within this nation Further, it suggests how use of multiple methods can enable us to understand the simultaneous presence of somewhat contradictory values within a society The study also provides applications of the proposed cultural value dimensions and advises implications of regional subcultures for various social and organizational phenomena

Knowledge transfer from international joint ventures to local suppliers in a developing economy

Abstract: Using in-depth data from 155 Pakistani auto components suppliers, we study the role of socialization in knowledge transfer from international joint venture assemblers. We find that whereas formal socialization mechanisms enhance the comprehension and speed of knowledge transfer to local suppliers, informal socialization mechanisms enhance comprehension but not speed. Building on structural contingency theory, we find that having a mechanistic organizational structure among knowledge recipients is an antecedent to formal socialization, leading to improved knowledge transfer.

Barriers to knowledge seeking within MNC teams: Which differences matter most?

Abstract: Do international or non-international differences between members matter most for multinational corporation (MNC) teams? We consider two types of international differences, arising from geographic locations and national origins, and two types of non-international differences, arising from structural affiliations and demographic attributes. Examining the barriers to knowledge seeking between MNC team members, we argue that whether international or non-international differences create greater barriers depends on whether they are position-based or person-based. Using the Social Relations Model to analyze 13,616 dyadic interactions among 2090 members of 289 teams in a large MNC, we find that, for both international and non-international differences, those that are position-based (i.e., geographic and structural differences) created greater barriers than those that are person-based (i.e., nationality and demographic differences). In addition, familiarity from a prior team reduced the barriers created by international and non-international differences that are position-based more than those that are person-based. We discuss the implications of our study for understanding the micro-foundations of knowledge flows in MNCs.

Selective attention and the initiation of the global knowledge-sourcing process in multinational corporations

Abstract: Multinational corporations (MNCs) frequently use their foreign subsidiaries to identify new opportunities to access external knowledge. This article builds on the attention-based view to examine how selective attention – the focus on certain issues or answers at the exclusion of others – works in the global knowledge-sourcing process in MNCs. The results reveal an intriguing paradox: while MNCs may establish foreign subsidiaries far from headquarters to identify diverse, novel knowledge, and overcome local search, headquarters’ decision makers tend to favor opportunities that are market proven and simply confirm what the MNC already knows. Subsidiary managers’ pre-selling and selling efforts, however, can play a pivotal role in overcoming that bias. This study combines detailed qualitative data with access to a proprietary database on 137 external knowledge-sourcing opportunities in one of the world’s largest MNCs in the telecommunications sector.

Marketing mix and brand sales in global markets: Examining the contingent role of country-market characteristics

Abstract: Marketing products globally is challenging due to the diverse nature of markets. We use market heterogeneity, unbranded competition, resource and infrastructure availability, and sociopolitical governance as country-market characteristics that distinguish between developed and emerging countries. We investigate their moderating role on the relationship between elements of the marketing mix and brand sales. We provide evidence, from a hierarchical linear model and a panel data set of brands from 14 emerging and developed markets that account for 62% of the global GDP, that country-market characteristics moderate the relationship between the complete set of marketing mix elements and brand sales performance asymmetrically. While distribution and price have the largest impact in emerging and developed countries, respectively, product innovation and advertising have significantly larger impacts in emerging markets relative to developed countries. These finding highlights the importance of contingency view of marketing strategy in global markets.

Labor market regulations and cross-border mergers and acquisitions

Abstract: This article exploits changes in country-level employment protection regulations as a source of plausibly exogenous variation in labor laws and finds that these regulations play an important role in cross‐border merger activity. Over the 1991–2009 period, countries that tighten employment regulations attract more foreign acquirers, especially those from countries with relatively more flexible labor regulations. The results appear to be robust to alternative specifications. Importantly these patterns are pronounced in those recipient country sectors in which foreign acquirers may find attractive targets at bargain prices: sectors with relatively high productivity and skill. The article also provides evidence suggesting that, because pro-labor reforms allow foreign acquirers to cherry pick more skilled and productive local firms, these transactions are associated with greater deal synergies and improved post-merger operating performance.

Peer conformity, attention, and heterogeneous implementation of practices in MNEs

Abstract: How do subsidiaries respond to normative demands from both their headquarters and local external constituents? We propose that subsidiaries pay varying levels of attention to demands depending on their peers’ norm-conforming behavior, resulting in heterogeneous practice implementation. We study the implementation of 25 practices, associated with three corporate social responsibility (CSR) issues in 101 worldwide subsidiaries of a multinational enterprise (MNE). Consistent with the idea that attention is limited and therefore selective, we find that external peers’ conformity to the CSR norm directs subsidiaries’ attention toward the CSR-related demands of external constituents at the expense of the demands from the headquarters. However, internal peers’ conformity increases attention to both external and headquarters’ demands related to CSR. As higher attention levels result in higher practice implementation, internal and external peers’ conformity drives the heterogeneity of practice implementation in the MNE. Our results suggest the need to rethink the influence of peers’ conformity on subsidiaries’ implementation of practices, as it not only triggers mimicry based on legitimacy but also and simultaneously a more strategic response based on internal and external competitive threats and attention allocation.

Employees’ willingness to adopt a foreign functional language in multilingual organizations: : The role of linguistic identity

Abstract: Language holds a central role in sustainable international expansion for multinationals. The choice of the functional language can facilitate or hinder communication between headquarters and subsidiary locations. In order to communicate effectively with the parent organization, host country employees often have to adopt a language that is not native to the subsidiary region. We take a subsidiary employee perspective in presenting an interdisciplinary theoretical model of host country employees’ willingness to adopt a foreign language in multinational organizations. The construct of linguistic identity, shaped by the linguistic landscape of the host location, is introduced as an important determinant in this process. Specifically, the foreign functional language may pose a threat to the employees’ existing linguistic identity; willingness to adopt the foreign functional language may depend upon the extent of this perceived threat. We incorporate the effects of foreign language proficiency and individuals’ motivation for enhancement in the theoretical model. Both high proficiency in a foreign language and need for social, economic, and career enhancements can increase individuals’ willingness to adopt the foreign functional language. Finally, we develop and present implications of the linguistic identity processes for entry mode, location, and language strategies.

Mindscapes across landscapes: Archetypes of transnational and subnational culture

Abstract: Most research on culture in international business either aggregates people within a country into a single, homogeneous, national culture, or examines heterogeneity within countries based on exogenous criteria. In this study, we explore heterogeneity in cultural values within and across countries endogenously through the configurations of values people share in common. We develop a theory of culture archetypes and use a novel methodology that identifies a small number of distinct configurations of values – archetypes – in our data. These data come from the World Values Survey 2005 and Schwartz’s model of culture. We identify four culture archetypes in Japan, USA and China, and six in India. The existence of transnational and subnational archetypes across the four countries suggests the need to recognize culture as a combination of universal – etic – as well as unique – emic – characteristics. Our approach also distinguishes between those individuals represented by our archetypes and those individuals who more closely resemble the average values of a country. By unifying both archetypes and national averages within one theoretical and methodological schema we thus reconcile the conflicting perspectives in the field.