Enemy or friend? The cultural impact of cross-functional behavior on the EO–performance link

Using power distance (PD) and individualism (ID), this study examines the impact of cross-functional cooperation and competition on the EO–performance link in different cultural settings. This study is the first to take departments’ cooperative and competitive behavior into account. A study of 846 firms from nine countries reconfirms the positive impact of EO and finds a negative impact of cross-functional cooperation, but does not confirm an impact of competition. When culture is taken into account, we see a significant impact of PD on the proposed relationships, with lower levels of PD increasing the impact. We find no significance for ID.