The Moderating Effect of Long-Term Orientation on the Relationship Among Human Capital Research, Business Sophistication, and Knowledge & Technology Outputs

Abstract

National level innovation is one of the outstanding locomotive factors for both economic and business growth. Global Innovation Index (GII) is one of the most commonly used indices in this context. Furthermore, the innovation level of countries is affected by cultural dynamics. Hofstede’s Cultural Dimensions (HCD) is one of the prominent guidelines on cultural dynamics. In this study, human capital & research (HCR), business sophistication (BS) and knowledge & technology outputs (KTO) are addressed to analyze the relationships among them. Moreover, long-term orientation (LTO) factor from HCD is considered as a moderator variable. This study aims at examining the relationships between HCR-BS and BS-KTO and exploring the moderating effect of LTO on these relationships. For this purpose, a conceptual model was proposed to explore these relationships. Structural Equation Modelling (SEM) was performed to conduct path analysis by employing 86 data from official web sites. The results show that hypotheses related to GII factors are supported, and a moderating effect of LTO is observed on the relationship between BS and KTO. These findings pointed out that shortterm oriented countries are more successful in transforming knowledge into outputs. Furthermore, policymakers and innovation managers should consider time-oriented cultural values while planning to gain knowledge and technology outputs.