I imagine it's socieity that is componentially grounded versus societies that are exponentially grounded.  The component is the individual and the exponent is the group.  A society that privileges a group envalument offers treatments of collectivism such that say a corporation can have the rights of individuals....and group abstract entities are woven about through the project of the state run programs.  In individualism the state run programs entitle and empower the individuals.  Right wing capitalism is both individualsitic and collectivist, but privileges the rights and give precedence to the rights of individuals who have individual entitlements over that of groups.  Capitalism is individualist but socialism is collectivist.  Hope that helps some.

Individualism is meant to be whether the individual is different from everyone. Objectivism supports individualism in this sense. Individual is a separate entity, making his own choices, thinking his own thoughts, and responsible for his own choices. Individualism is the idea that the individual’s life belongs to him and that he has an inalienable right to live it as he sees fit, to act on his own judgment, to keep and use the product of his effort, and to pursue the values of his choosing. Collectivism is the idea that the individual’s life belongs not to him but to the group or society of which he is merely a part, that he has no rights, and that he must sacrifice his values and goals for the groups Collectivist structures are counterproductive and deprive people of their essential liberties. Racism is fundamentally collectivist. Most citizens and most politicians believe that a balanced approach is most effective.

Here is a simple way to see it:

Individualistic cultures, such as Europe and America, emphasize personal achievement regardless of the expense of group goals, resulting in a strong sense of competition.

Collectivist cultures, such as those of China, Korea, and Japan, emphasize family and work group goals above individual needs or desires.

There are MANY sources on the web explaining this in more detail that you can Google.