Abstract

This paper examines how control strategy varies and to what extent the relationship between control modes and perceived effectiveness of control strategy is shaped by cultural dimensions. Based on the statistical analysis of empirical data from IT sector in six countries, we find that the positive correlation between formal control and perceived effectiveness of control strategy becomes stronger for higher uncertainty avoidance societies; masculinity shows a negative moderation effect on the relationship between informal control and perceived effectiveness of control strategy; and employee received trust has greater impact on perceived effectiveness of control strategy in collectivistic societies than in individualistic societies. These findings qualify existing research on the potentially conflicting role of trust and control and have important implications for management practice in intercultural context.