Hofstede’s Cultural Dimensions as a Moderator of the Relationship between Ambidextrous Learning and Corporate Sustainability in Born Global Firms

Abstract

This research analyzes the moderation effects of Hofstede’s Cultural Dimensions (Power Distance, Uncertainty Avoidance and Indulgence) in the relationship between Ambidextrous learning and corporate sustainability in born global firms. The data were collected from exporting firms characterized by beginning international operations in the first three years and were thus classified as Born Global. A panel Dynamic Structural Equation Model (DSEM) was used to test the research hypothesis. One of the methodological contributions is the exploration of dynamic social behaviors that are difficult to study, specifically over time. Here, DSEM becomes in a data analysis technique that allows us to analyze this type of phenomena. The research results show that the relationship between Ambidextrous learning (AL) and Corporate Sustainability (CS) is positive in the short- and long-term. The cultural dimension’s Power Distance and Uncertainty Avoidance moderates the relation between (AL) and (CS) and this dimension can predict their inertia. However, while Uncertainty Avoidance has a moderating effect, it does not predict future behaviors. Published literature on the Born Global company. that includes the moderation of Hofstede’s dimensions (Power distance, Avoidance of uncertainty, and Indulgence) from a company perspective that study the relationship between Ambidextrous Learning and Corporate Sustainability is scarce.