The trend towards globalization recently has been further strengthened by the attempts of multinational corporations (MNCs) to outsource technology-based jobs to developing countries. This trend raises questions regarding appropriate performance control options available to MNCs. The current paper proposes that electronic performance monitoring (EPM) may be an effective tool in ensuring production quality standards in distant operations. EPM is widely used in many industrialized countries. However, the use of EPM on a global scale may lead to an array of questions regarding appropriateness and effectiveness of this procedure in different cultural contexts. We propose a model that describes the interaction of major EPM characteristics and national culture dimensions, and suggest possible implications of this interaction on creating culture-sensitive EPM designs. The effects of culture on perceptions of acceptability and fairness of EPM and relevant individual and organizational outcomes are discussed. © 2005 Elsevier Inc. All rights reserved.
Journal of International Management