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Conceptually examines the effect of individualism/collectivism on the tenets of equity theory. It is the view of the authors that the equality principle of reward allocation in collectivistic cultures is not a separate method of distribution, but a subset of the theoretically grounded equity principle appropriately integrating the cross‐cultural individualism/collectivism value. To support this position, the authors reduce equity theory to its fundamental elements and illustrate how in dividualism/collectivism separately affects each component. The derived model and subsequent discussion should provide researchers with a theoretical frame work for future empirical studies.

This study seeks to examine differences in the perceptions of sexual harassment between business school students in the USA and Thailand.

Senior‐level business students from both the USA (228 students) and Thailand (260 students) were surveyed regarding their perceptions of what constituted sexual harassment behaviour. After reading different workplace scenarios, the participants used a Likert‐type scale to rank different behaviours as to what they felt constituted sexual harassment. The survey scores were factor‐analyzed in order to determine the constructs underlying the variety of sexual harassment behaviours.

Students in the USA viewed sexual harassment as involving a quid quo pro situation in which one's behaviour affects the terms of employment (sexual coercion), and a hostile environment in which certain behaviours and remarks create a hostile or offensive work environment. In comparison, the Thai students also viewed behaviours that create a hostile or offensive environment as constituting harassment, but also considered sexually explicit language and jokes to be very offensive, and as constituting a form of sexual coercion.

This study used only one data collection method, specifically, a survey instrument. Also, this study examined differences between US subjects and subjects from only one Far Eastern country. Thus, the results may not be generalizable to other East Asian countries.

As US businesses begin to expand into the Far East, it is imperative that we understand the nature of sexual harassment perceptions in these Far East countries.

This paper provides evidence that the perception of what constitutes sexual harassment varies across cultures.