Abstract
ABSTRACT This study investigates how home country cultural dimensions influence the technological innovation capacity (TIC) of multinational enterprises (MNEs) in China. Drawing on Hofstede’s cultural framework, we examine five key dimensions of national culture in relation to TIC indicators, including patents, R&D centres, and foreign direct investment. We also consider how the cultural distance between home and host countries moderates these relationships. Data were collected from a sample of prominent MNEs in China across diverse home countries and industries. Using structural equation modelling, results reveal significant positive effects of power distance, collectivism, and long-term orientation on TIC. However, uncertainty avoidance and masculinity have no significant impact. Cultural distance positively moderates the effects of power distance and uncertainty avoidance, but not other dimensions. These findings contribute new insights into how home country culture shapes MNEs’ development of innovation capacity abroad. The results have key implications for research integrating culture and innovation in international business.
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