A self‐representation analysis of the effects of individualist–collectivist interactions within organizations in individualistic cultures : Lessons for diversity management

Purpose – Increasingly, organizations in the Asia‐Pacific region are recognizing the importance of cross‐cultural management to the sustainability of their competitive edge. Although the literature is replete with cross‐cultural studies of individualism and collectivism, little information is available on the factors that foster effective individualist–collectivist interaction (ICI) within organizations. This paper attempts to provide a theoretical description of individualists and collectivists at the individual level of analysis, which offers specific testable hypotheses about the effect of self‐representation on prejudice between individualists and collectivists (ICs). Design/methodology/approach – In this paper, a theoretical model is presented in which intergroup prejudices and interpersonal prejudices mediate the effects of ICI and bicultural orientation toward cross‐cultural experiences and, in which, the dissimilarity openness of the climate moderates the level and outcome of prejudices flowing from ICI. Findings – The model depicts that the outcomes of ICI are mediated by the intergroup prejudices of collectivists and the interpersonal prejudices of individualists, which are moderated by the extent of diversity‐oriented HRM policies and practices and individuals’ orientation to cross‐cultural experiences. When workforces become culturally diverse, organizations should modify HRM practices to enable the full use of the range of skills and talents available from the diversity, and to ensure affective and behavioral costs are minimized. As globalization and international competition will continue to increase, organizations including those in the Asia‐Pacific region, should seriously re‐evaluate their HRM policies to adapt and take advantage of an increasingly culturally diverse workforce. Originality/value – The model provides a useful basis upon which organization researchers and practitioners can base their respective agendas.