High Uncertainty Avoidance Research Articles

Unleashing Innovation Under Sanctions: The Catalyst of National Culture

ABSTRACTThis article explores how national culture moderates the impact of economic sanctions on a targeted country's innovation performance, using a dynamic difference‐in‐difference approach. Our empirical analysis utilises a panel dataset spanning 213 nations from 2013 to 2019. We discover that economic sanctions generally have a detrimental effect on the innovation performance of targeted countries. However, not all types of sanctions have the same negative impact on innovation. Specifically, financial, arms, and travel sanctions exhibit this negative influence. Furthermore, we reveal that under the sanction circumstances, countries characterised by high power distance and high uncertainty avoidance cultures tend to experience a higher level of innovation performance. Our findings remain robust after conducting various tests. In our subsequent analyses, we focus on different types of sanctions and find that the favourable impact of power distance and uncertainty avoidance culture on the relationship between sanctions and innovation applies primarily to financial sanctions.

Decoding Public Policy: How Cultural Dynamics Shape Decision-Making in Indonesia’s Political Landscape

This study explores how cultural dynamics shape public policy in Indonesia, focusing on the influence of cultural dimensions on policy-making processes and outcomes. The purpose is to understand the impacts of Indonesian cultural values on various policy sectors, including education, health, environment, and economic development. Employing a qualitative research approach, the study relies exclusively on secondary data from academic literature, government reports, and media sources to examine these cultural influences. Findings reveal that high power distance leads to centralized decision-making, while collectivism shapes policies toward community welfare. High uncertainty avoidance results in rigid regulatory frameworks, and traditional gender roles affect gender-related policies. Sector-specific analyses highlight the integration of traditional knowledge in environmental policies and the challenges of balancing modernization with cultural heritage in economic policies. The implications of these findings suggest that policymakers should incorporate cultural considerations into policy design to enhance effectiveness and inclusivity. This research contributes original insights into the intersection of culture and policy, emphasizing the need for culturally sensitive approaches in diverse governance contexts. By shedding light on how cultural factors impact policy formulation and implementation, the study offers valuable guidance for developing culturally relevant and effective policies addressing societal needs.

Unpalatable solutions: Consumer resistance towards Insect‐Based foods is moderated by uncertainty avoidance

AbstractTraditional livestock meat poses sustainability challenges, while insect proteins offer a low‐impact alternative. Cultural barriers, such as uncertainty avoidance, hinder widespread acceptance of insect‐based foods, despite a growing market. Research on consumer attitudes and purchase intentions towards insect‐based foods yields mixed results, prompting a meta‐analysis to explore cultural influences and contextual factors. This meta‐analysis investigates consumers’ willingness to try insect‐based food products. Analysis of 24 publications (97 studies, with 13,609 observations; participant Mage = 34.6), supports the notion that consumers around the world are not readily willing to adopt insect‐based food products. Moderating this effect, at the country level, high uncertainty avoidance negatively affects consumers’ intentions to try insect‐based products. Two follow‐up studies replicate the findings of the meta‐analysis, incorporating an individual‐level assessment of the moderating effect of uncertainty avoidance, and testing the mediating effect of food neophobia on consumers’ (un)willingness to adopt insect‐based food products. A third study provides evidence as how to buffer the negative reactions of consumers towards insect‐based foods: after sensory evaluation of a cricket‐flour nacho in a laboratory setting, participants were more willing to try it and generally evaluated the product and the experience more favorably, compared to their previously stated expectations. Theoretical contributions and practical implications for marketing strategy and communication, to overcome the negative perceptions related to insect‐based food, along with limitations and future research directions, are discussed.

Investigating how Cultural Contexts Shape Social Media Experiences and their Emotional Consequence

This study investigates the impact of cultural contexts on social media experiences and their emotional consequences. With over 4.8 billion global users, social media plays a pivotal role in shaping communication and interpersonal relationships. However, cultural factors such as individualism vs. collectivism, power distance, and uncertainty avoidance significantly influence how users engage with these platforms. Utilizing a quantitative approach, this research explores the relationships between cultural dimensions, social media engagement patterns, and emotional outcomes across diverse cultural groups. Data was collected from approximately 1,000 participants, equally divided between Western and Eastern cultural contexts, using standardized questionnaires assessing cultural orientation, social media usage, and emotional responses. The analysis revealed that individualism positively correlates with social media engagement (r = 0.450, p < 0.01), while collectivism negatively affects engagement frequency (r = -0.320, p < 0.05). High power distance (r = -0.290, p < 0.05) and uncertainty avoidance (r = -0.350, p < 0.01) negatively impacted user interactions, highlighting cultural constraints on online behavior. Furthermore, the study found that social media engagement mediates the relationship between cultural factors and emotional outcomes, with significant differences in emotional responses observed between Western (M = 4.80) and Eastern (M = 3.20) cultures. The findings emphasize the importance of culturally sensitive approaches in mental health interventions and social media platform design, advocating for tailored strategies that account for the unique needs and experiences of users from different cultural backgrounds. This research contributes to the growing body of literature at the intersection of culture, technology, and psychology, offering insights valuable for both academic and practical applications in enhancing user well-being in the digital age.

Media Literacy Interventions Improve Resilience to Misinformation: A Meta-Analytic Investigation of Overall Effect and Moderating Factors

The widespread dissemination of misinformation has become a global concern. A recommended solution is to improve people’s ability to discern true from false information through appropriate media literacy education programs. This meta-analysis quantitatively synthesized the results of 49 experimental studies ( N = 81,155) that examined the efficacy of media literacy interventions in mitigating misinformation. This study finds that media literacy interventions generally improve resilience to misinformation ( d = 0.60). Specifically, the interventions reduce belief in misinformation ( d = 0.27), improve misinformation discernment ( d = 0.76), and decrease misinformation sharing ( d = 1.04). Moreover, media literacy interventions have stronger effects (1) when multiple sessions rather than a single session are implemented, (2) in high (vs. low) uncertainty avoidance cultures, and (3) among college students than among adults recruited from online crowdsourcing platforms (e.g., Amazon Mechanical Turk). These findings enrich our understanding of inoculation theory and provide valuable guidance for the design of future media literacy intervention programs.

The relationship between corporate culture of SMEs and crisis response ability under the cross-cultural background

This research explores the critical influence of corporate culture on small and medium-sized enterprises’ (SMEs) crisis response abilities under varied cross-cultural environments. Amid the disruptive backdrop of the COVID-19 pandemic, SMEs globally have faced unprecedented challenges. This study addresses a gap in the existing literature by conducting a cross-cultural analysis of SMEs in China, Thailand, and Germany to understand how corporate culture affects crisis management. Utilizing a competitive cultural value model, the research categorizes corporate culture into four dimensions: group culture, development culture, hierarchy culture, and rational culture. These cultural dimensions are investigated in relation to their impact on crisis response abilities. Additionally, national cultural dimensions such as individualism and uncertainty avoidance are examined as moderating variables. The findings reveal that group and development cultures positively influence crisis response abilities, enhancing organizational resilience and adaptability. Conversely, hierarchy culture negatively affects crisis management, hindering flexible response strategies. Rational culture supports structured crisis response through goal-oriented practices. National culture significantly moderates these relationships, with individualism and high uncertainty avoidance impacting the effectiveness of organizational cultural dimensions in crisis scenarios. This study offers theoretical advancements by integrating cultural dimensions with crisis response strategies and provides practical implications for SMEs striving to enhance their resilience and adaptability in a globalized business environment.

A country’s culture and reporting of sustainability practices in energy industries: does a corporate sustainability committee matter?

This study investigates the impact of the national culture on the reporting of sustainability practices. Likewise, it explores the moderating effect of sustainability committees within firms on the nexus between a country’s cultural and sustainability reporting. The study uses a sample over a decade (2010–2019) from 18 countries. It employs six well-established cultural dimensions: power distance, Individualism, Masculinity, uncertainty avoidance, long-term orientation, and Indulgence. These dimensions are aggregated to create a composite cultural index score for each country, reflecting the nuanced interplay of cultural attributes. The sustainability reporting score is based on a firm Environment, Social, and Governance (ESG) scores. The results reveal that reporting sustainability practices is a positive function of our country’s cultural index score. This indicates that a firm dissimilates higher levels of sustainability information when it operates in a country with a higher power distance, lower Individualism, higher Masculinity, higher uncertainty avoidance, higher long-term orientation, and lower Indulgence and vice versa. Likewise, a sustainability committee moderates the relationship between the national culture and sustainability reporting, suggesting that a corporate sustainability committee can act as a mechanism for aligning and adapting sustainability reporting practices to the specific cultural context in which a firm operates. The results provide essential implications for firms and policymakers. Firms should be aware of how cultural values shape their sustainability reporting. Also, a specialized sustainability committee navigates cultural complexities and aligns initiatives with expectations. Moreover, Policymakers should consider cultural influences and develop guidelines that accommodate variations, leading to more effective sustainability reporting. This study contributes by examining environmentally sensitive industries (i.e., the energy industries), providing industry-specific analysis that deepens our understanding of how a country’s culture shapes the reporting of sustainability practices. Likewise, the study uses a holistic approach, exploring the multifaceted dimensions of the country’s culture and its consequences for reporting sustainability practices.

Ecolabel persuasion effect across cultures: a comprehensive meta-analysis

PurposeCompanies around the world have included ecolabels as a marketing strategy to convince consumers to choose products with lower environmental impact. However, the literature lacks a consensus on the effectiveness of ecolabels in persuading consumers to choose green products. The present meta-analysis addresses this gap by first evaluating the net persuasion effect of using ecolabels and second by investigating the role of cultural orientations, operationalized at the country level, in this effect.Design/methodology/approachThis cross-cultural meta-analysis analyzed data from 26,116 consumers across 18 countries, encompassing 75 papers published between 1995 and 2023. Univariate and meta-regression analyses were utilized.FindingsThe results demonstrate that the presence (vs absence) of ecolabels has a medium positive persuasion effect. Findings show cultural orientations moderate the persuasion effect of ecolabels in that the effect is stronger in countries with high power distance, individualism, masculinity (motivation towards achievement and success) and uncertainty avoidance orientation, which create contingent conditions to ecolabels’ persuasion. In addition, results show other methodological factors that affect ecolabel persuasion. Contributions and implications of the findings are discussed.Originality/valueThis meta-analysis is distinctive for its global scope, including diverse countries and cultures. It addresses a crucial gap in ecolabel persuasion research, providing insights that reconcile discrepancies in existing studies. It offers practical implications for businesses and policymakers while laying the groundwork for future cross-cultural research in this field.

Examining national culture and journalistic autonomy

This study used data from 52 countries to examine newspaper journalists’ perceptions of their professional autonomy and whether autonomy is improving. Results suggest that nearly three-quarters of newspaper journalists enjoy some degree of professional autonomy. Journalists in individualistic cultures and high uncertainty avoidance cultures reported higher levels of autonomy. A healthy democracy also predicted journalistic autonomy. Overall, results suggest journalistic freedom is declining. Interestingly, stronger human development was associated with perceived declines in autonomy.

Sustainable Digital Transformation: Its Impact on Perceived Value and Adoption Intention of Industry 4.0 in Moderating Effects of Uncertainty Avoidance.

Industry 4.0 is a significant technical revolution that combines big data analytics, the Internet of Things (IoT), and cyber-physical systems to improve manufacturing productivity. This study investigates the impact of digital trust and sustainable attitude on perceived value and the intention to adopt Industry 4.0 technologies. It also examines the moderating role of uncertainty avoidance in these relationships. Data were collected from 189 employees of leading manufacturing companies in Indonesia that are recognized for their Industry 4.0 practices. The data were analyzed using Partial Least Squares (PLS) methodology with SmartPLS software to test the proposed hypotheses and explore the moderating effects. The findings reveal that both digital trust and sustainable attitude significantly influence perceived value. However, these factors do not directly affect the intention to adopt Industry 4.0 technologies. Uncertainty avoidance moderates the relationship between digital trust and adoption intention. Specifically, in environments with high uncertainty avoidance, digital trust becomes a critical factor influencing the decision to adopt Industry 4.0 technologies. The study provides valuable insights for organizations aiming to implement Industry 4.0 initiatives. It highlights the importance of fostering digital trust and considering cultural dimensions, such as uncertainty avoidance, in their technology adoption strategies.

DESIGN THINKING FOR BUSINESS INNOVATION IN ASIA: THE CULTURAL PERSPECTIVE

As a human-centered innovation approach, design thinking (DT) has been widely applied in a variety of industries and spheres to create new and enhance existing products, services and processes by organizations around the globe. DT is highly collaborative, involves direct communication/feedback and requires cross-functional/cross-hierarchical participation. DT is also iterative, necessitating embracing risk and ambiguity of the experiment and instead of penalizing ‘failures’, learning promptly from them. Nevertheless, Asian countries are often described as high power distance, high uncertainty avoidance, collectivist cultures in which high context and indirect communication are implied. This conceptual article includes analysis of academic research articles, reports, interviews and books by design thinking experts to analyze advantages of design thinking for business innovations, discuss major cultural characteristics of Asian countries using Hofstede’s cultural dimensions and respective challenges in applying design thinking. It concludes by providing practical recommendations, limitations of the analysis and suggesting aspects for future research.

Regulating board gender diversity in Europe: The influence of cultural, governmental, and women’s institutions

This study empirically explores the formal and informal institutional antecedents of the enactment of quotas and codes to increase gender diversity on corporate boards. A panel of 30 European countries and 510 observations from 2002 to 2018 reveals that formal and informal national institutional contexts affect the likelihood of board gender codes and quotas. The presence of women in decision-making bodies is the most powerful driver of quotas and codes. Countries with better governance quality and longer maternity leave are less likely to have board gender quotas. High power distance, masculinity, uncertainty avoidance, restraint, short-term orientation, and individualism all increase the likelihood of quotas. A country’s female participation in the labor market is also associated with the regulation of board gender diversity. In contrast to previous theoretical propositions, other institutional factors, such as the current presence of a left-wing government, are not related to gender diversity regulations.

Quality of work life, cultural values, and Islamic work ethics: The case of the Arab education system in Israel

The study focuses on quality of work life (QWL), Islamic work ethics (IWE), and cultural values among employees in a complex organization, with a case study of Arab high-school teachers in the education system in Israel. The sample consisted of 1245 employees. To establish a reliable model of QWL, exploratory factor analysis, and confirmatory factor analysis were utilized, resulting in six dimensions. A reliable model of IWE was also established, consisting of two dimensions. Employees reported average QWL levels, high IWE levels, low power distance, high uncertainty avoidance, and a tendency toward collectivism and femininity. This study demonstrates a positive relationship between QWL dimensions and IWE, with certain cultural values—such as collectivism and uncertainty avoidance—moderating this relationship.

Empathetic leadership and employees' innovative behavior: examining the roles of career adaptability and uncertainty avoidance.

Career construction theory proposes that adaptivity affects career adapting through career adaptability. However, research on the mechanism of this pathway remains scarce. By applying career construction theory and conservation of resources theory, we hypothesize that career adaptability (concern, control, curiosity, and confidence) mediates the relationship between empathetic leadership (adaptivity) and innovative behavior (career adapting). Moreover, we posit that uncertain avoidance moderates the mediating mechanism. Our study used SPSS23 and bootstrap methods (PROCESS) to test the proposed model. The sample comprised 301 employees from different firms in various industries. In this study, empathetic leadership-5, career adaptability-24, uncertainty avoidance-5, and innovative behavior-6 scales were used to measure empathetic leadership, career adaptability, and uncertainty avoidance. The results revealed that (1) empathetic leadership is positively related to employees' innovative behavior (2) Concern (H2a), control (H2b), curiosity (H2c), and confidence (H2d) mediate the relations between empathetic leadership and employee's innovative behavior (3) Uncertainty avoidance moderates the relationship between empathetic leadership and concern (H3a), control (H3b), curiosity (H3c), and confidence (H3d), such that this relationship is stronger when uncertainty avoidance is higher (4) Uncertainty avoidance moderates the indirect relationship between empathetic leadership and employee innovative behavior through concern (H4a), control (H4b), curiosity (H4c), and confidence (H4d), such that this indirect relationship will be stronger when uncertainty avoidance is high than when it is low. We investigated how empathetic leadership affects innovative behavior. Based on career construction theory and conservation of resources theory, we also tested the hypothesis that concern, control, curiosity, and confidence play mediating roles in linking empathetic leadership (career adaptivity) to innovative behavior (career adapting). In addition, this study found that uncertainty avoidance does not always have negative effects. People with a high uncertainty avoidance tendency may be dependent more on empathetic leadership to improve their career adaptability, which promotes their innovative behavior.

Analysis of Japanese Cultural Patterns —Based on Hofstede’s Value Dimensions and Minkov’s Cultural Dimensions

Intercultural communication is of vital importance, as it not only promotes intercultural understanding and respect, but also stimulates innovative thinking and broadens horizons. In today's globalized world, intercultural competence has become the key to individual and organizational success, helping to build a harmonious and pluralistic world. Japanese culture is unique and diverse, blending tradition and modernity, not only in the exquisite art of tea ceremony and flower arrangement, but also in advanced technology and innovation. Its spiritual core of respect for nature and emphasis on etiquette has had a profound impact on the world, highlighting the unique charm and importance of Japanese culture. This paper analyzes Japanese culture based on Hofstede’s Value Dimensions and Minkov’s Cultural Dimensions. It includes individualism or collectivism, high uncertainty avoidance or low uncertainty avoidance, high power distance or low power distance, masculinity or femininity, long or short-term orientation, industry or indulgence, monumentalism or flexumility, exclusionism or universalism, tight or loose culture.

Informal Institutions and Audit Pricing: Cross-Country Evidence of National Culture and Audit Fees

Synopsis The research problem In this study, we examined the effect of an important informal institution, namely, national culture, on audit fees in an international context. Motivation In recent years, extant literature has increasingly focused on country-level differences in the audit environment, as these might have a significant influence on how financial statement audits are conducted across the globe. We contribute to this stream of literature by investigating the impact of national culture on audit fees. The test hypotheses Based on the demand- and supply-side perspectives of audit fees, we hypothesized that national culture dimensions — namely, uncertainty avoidance, power distance, individualism versus collectivism, and masculinity versus femininity — affect audit fees. Target population We used a sample of 27,670 firm-year observations across 22 countries over the 2002–2019 period. Adopted methodology We used ordinary least squares (OLS) regressions as baseline technique and entropy-balanced method (EBM) and system-generalized method of moments (GMM) to address endogeneity concerns. Analyses We examined the impact of Hofstede’s four national culture dimensions — uncertainty avoidance, power distance, individualism versus collectivism, and masculinity versus femininity — on audit fees. We also tested the robustness of results using alternative measures of national culture, subsample analyses, and additional firm-level factors. Findings Consistent with our hypotheses, we find that audit fees are higher (lower) in countries with higher uncertainty avoidance, individualism, and masculinity (power distance) scores. Our further analyses reveal that earnings management proxied by abnormal accruals does not impact the relationship; however, country-level creditor rights influence audit fees in high power distance and masculine cultures. We also note that national culture influences auditor choice and audit opinion. Our main findings are robust to alternate proxies and subsample analysis, as well as to address potential endogeneity concerns. Overall, our findings offer important implications for firms operating in global markets and for the audit profession.

Culture and exit mechanisms: International evidence

This study aims to examine the effect of national culture on the choice of exit mechanism for private firms. Using an international dataset of private firms covering 60 countries from 1985 to 2019, we find that private firms in countries with high uncertainty avoidance, masculinity, indulgence vs. restraint, and individualism and low power distance and long-term orientation are more inclined to exit through mergers and acquisitions. Conversely, private firms in countries with low uncertainty avoidance, masculinity, indulgence vs. restraint, and individualism and high power distance and long-term orientation are more inclined to exit through initial public offerings. Our findings are robust to control for firm and country characteristics, market conditions, funds demand, payment method, subperiods, subsamples, cultural proxies, and composite cultural profile index. Overall, our findings underscore the importance of cultural dimensions in understanding exit mechanisms for private firms.

Do Peers and National Culture Matter for Capital Structure Decisions of Emerging Market Corporations?

The study investigated how national culture acts as a mediating factor in the connection between peer effects and corporate capital structure in enterprises from emerging market nations. The methodology employs a two-stage least squares technique, incorporating fixed effects and an instrumental variable approach, to analyze the regression results obtained from ordinary least squares. The results indicate that the level of influence exerted by peers is significant for a firm when determining its own level of leverage. Furthermore, it has been noted that enterprises tend to adopt similar cultural traits as their peers, such as minimal power distance, high uncertainty avoidance, individualism and masculinity. Hence, managers may consider their peers’ decisions on leverage in the industry while making assessments about the appropriate level of leverage for their own company. Furthermore, as emerging economies often encounter perplexing and uncertain circumstances, obtaining reliable information from peers’ financial decisions can potentially mitigate the duration and cost associated with making this crucial decision.

Lenders’ culture and the pricing of public corruption in corporate loans: evidence from the United States

We investigate how the cultural heritage of bank CEOs shapes the relationship between public corruption and the cost of syndicated loans in the US market. We show that banks led by CEOs that trace their origin in high uncertainty avoidance societies penalize less sharply in loan pricing the presence of high local public corruption in the state of the borrowing firms. We find some similar evidence for banks led by CEOs that trace their origin to more individualistic societies. These findings are consistent with the view that certain cultural traits prompt tolerance for the risks of corruption and show that the pricing of institutional quality in corporate loans is conditional on banks led by CEOs with such traits.

The effect of organizational culture on territorial exclusivity in international marketing channels: a study of Japanese manufacturing exporters

PurposeIt is important for an exporting manufacturer to motivate its foreign channel partners to sell and promote its products. An excellent way to motivate such foreign channel partners is to give them exclusive territories. Unfortunately, there is a lack of knowledge regarding the determinants of territorial exclusivity. This study aims to investigate the relationship between organizational culture and territorial exclusivity and the moderating role of firm size in this relationship.Design/methodology/approachSurvey data were collected from manufacturing small and medium-sized enterprises (SMEs) in Japan. To test the hypotheses, a regression analysis was conducted using the ordinary least squares technique.FindingsEmpirical evidence shows that the cultural values of collectivism and uncertainty avoidance influence territorial exclusivity; collectivist exporters are likely to use territorial exclusivity, whereas exporters with high uncertainty avoidance are not likely to use it. Furthermore, the larger the firm size, the smaller the impact of cultural values on territorial exclusivity; this suggests that large SMEs do not rely on their organizational culture to make decisions about exclusive territories.Originality/valueThe export marketing literature emphasizes the advantages of exclusive territories. By contrast, the channel management literature suggests that exclusive territories also have disadvantages. As exclusive territories have both advantages and disadvantages, it is crucial to answer the following question: What kinds of exporting manufacturers grant exclusive territories to their foreign channel partners? By addressing this question, this study contributes to a better understanding of export channel strategy.