Hofstede's Cultural Dimensions Research Articles

Behavioral characteristics in the disclosure of main matters in the audit reports of the banks listed on b3-Brazil stock exchange

The literature indicates that the auditor's behavioral characteristics related to the national culture in which he is inserted can influence the disclosure of main audit matters (PAA). This article aims to investigate whether the cultural influence of Brazilian auditors identified through the cultural dimensions of Hofstede (2001) influences the number of main audit matters disclosed by auditors of banks listed on B3. Data collection took place through accounting and financial information extracted from Economática, independent audit reports for the periods ended December 31, 2016 to December 31, 2020 and the tool that assesses the cultural dimensions of countries called Hofstede Insights. The statistical treatment was by multiple linear regressions using the Ordinary Least Squares Method (OLS). Average of 4 PAAs were reported per company, 97% of the sample was audited by Big Four companies. The results indicated that there is no statistical significance regarding the Power Distance (PDI), Uncertainy Avoidance (UAI) and Individualism (IDV) dimensions in relation to the number of main audit matters (PAA) disclosed by the auditors.

A meta-analysis of the factors associated with s-commerce intention: Hofstede's cultural dimensions as moderators

PurposeIn recent years, the proliferation of social commerce (s-commerce) has attracted many researchers to investigate the drivers of individuals' intentions. However, the empirical results reported in these studies were fragmented and inconsistent. This has led various meta-analyses to synthesize these findings, but without including a large number of s-commerce studies. In addition, investigating meta-analytically the effects of moderators such as the six dimensions of Hofstede's national culture is still lacking.Design/methodology/approachDrawing on nine theories and models, this meta-analysis aims to summarize the findings reported in 109 s-commerce studies published between 2011 and 2021 and to examine the moderating role of national culture. The correlation coefficient (r) has been used as the main effect size for this study. Based on the random-effects method, the CMA V3 software has been employed to calculate the weighted mean effect sizes.FindingsThe meta-analysis results showed that all the 11 hypothesized direct relationships are positive and significant. The moderator results also revealed that five out of six cultural dimensions significantly moderate the examined associations.Originality/valueThis research serves to enrich the existing s-commerce literature by addressing contradictory and mixed results reported in the empirical studies. This study is one of the first of its kind to investigate the role of Hofstede's six cultural dimensions as moderators in the field of s-commerce using the meta-analytic techniques.

The relevance of national culture to policy uncertainty and firm performance: European evidence

PurposeThe purpose of this study is to investigate the impact of policy uncertainty on firm performance and to examine how the different cultural societies deal with the policy-induced uncertainty.Design/methodology/approachThe authors use data of European non-financial firms to extend the growing literature on policy uncertainty, firm performance and national culture. The authors consider financial as well as market proxies to measure firm performance and use Hofstede's cultural dimensions as a proxy for national culture. The authors apply the generalized method of moments (GMM-system) regression technique on a dataset of 702 non-financial European firms, listed during the period 2002–2018.FindingsThe authors find overwhelming evidence that policy uncertainty reduces the performance of the European firms; however, cultural differences among different European countries moderate the impact of policy uncertainty on the financial as well as the market performance of the firms. The results of this study show that European cultures with high power distance, individualism, masculinity and indulgence efficiently deal with the economic policy uncertainty. While the European societies with high uncertainty avoidance fail to cope with policy-induced uncertainty. The results are robust to different regression models, alternate proxies of firm performance and endogeneity issues.Practical implicationsThe authors argue that policy uncertainty increases information asymmetry and decreases firm performance, therefore, the policymakers shall be considerate of the consequences of the policy-induced uncertainty in the society and business arena that would not only adversely affect the firms but also the economy.Originality/valueTo the best of the authors' knowledge, this is the first study that investigates the role of national culture on the relationship between policy uncertainty and firm performance in the European context.

What determines a country's proactiveness during a pandemic?

What determines a country's proactiveness during a pandemic? The answer to the question lies the focus of this article. This study attempted to determine the extent to which Hofstede's national cultural dimensions are associated with a country's proactiveness. Proactiveness is about acting in advance for the desired outcome(s). The present study accounted for the country's proactiveness as the number of tests conducted per thousand people in the initial phase of the pandemic to prevent an outbreak. For this, data from 64 countries was used and found that cultural dimensions such as power distance, masculinity, and uncertainty avoidance influence a country's proactiveness in the pandemic outbreak's initial phase. Low power distance, low masculinity, and high uncertainty avoidance are related to increased proactiveness. National cultural dimensions explain approximately 66% of the variance in proactiveness. The study findings suggest that national culture influences a country's efforts during the pandemic, implying the need to consider the country's cultural orientation for the effective design and implementation of preventive measures. The theoretical and practical implications of the findings are discussed.

Theory Development for Social Entrepreneurship Engagement

Social Entrepreneurship (SE) is an entrepreneurial activity demonstrating the ability to address complex social problems (Austin et al., 2006). However, despite growing global interest in Social Entrepreneurship, SE theory is still in the process of conceptualization, and there is presently no acknowledged theory that can confine the phenomenon (Sekliuckiene & Kisielius, 2015; Pless, 2012). Therefore, this study aims to develop a rudimentary theory for Social Entrepreneurship engagement. This study is based on the analysis of scientific papers, allowing the researcher to evaluate and explain the phenomena of social entrepreneurship involvement and its antecedents. Rudimentary Theory was developed based on the literature-conceptual mapping, proposition, and category analysis findings and outcomes. The framework outlines the antecedents of social entrepreneurship engagement that explain why an individual would engage in the process of building a socially driven enterprise. The highlight of this study is that Motivations and Social Entrepreneurial Behavior are essential antecedents of Social Enterprise engagement (Mair & Noboa, 2006; Prieto et al., 2012), and Hofstede's (2001) global cultural dimensions moderates the engagement of Social Enterprise (Kedmenec & Strasek, 2017; Hechavarria & Ingram, 2016; Mueller & Thomas,2001).

Cultural Dimensions and Motivations of Social Entrepreneurship Engagement

Social Entrepreneurship (S.E.) is an entrepreneurial activity that answers unsolved social problems (Austin et al., 2006). The study's primary purpose is to measure the perception of Nascent Social Entrepreneurs' motivations of Germak & Robinsons (2013) and Hofstede's (2001) Cultural Dimensions in their engagement with social entrepreneurship. The participants of the study are the Nascent Social Entrepreneurs. They participated in the IGNITE Program of the Center for Social Entrepreneurship (CSE) of the University of San Carlos (USC), Global Social Benefits Institute (GSBI) of Miller Center, and Ramon Aboitiz Foundation Incorporated (RAFI). The data gathering was during the five (5) monthly workshop series; the researcher utilized a self-administered questionnaire derived from the scientific literature and pre-tested with Cronbach Alpha to determine the internal consistency of the constructs in the variables. Multiple Regression Analysis was used to predict the relationship between the cultural dimensions towards the motivation of Social Enterprise Engagement. The study found that only Femininity, High Tolerance for Risk, and Low Power Distance cultural backgrounds influence motivation toward Social Entrepreneurship Engagement.

Gotong Royong Reflection in The Content of GOTO Advertising at Youtube

This research aims to understand the meaning of 'Gotong Royong' in GOTO's YouTube video by applying Hofstede's Cultural Dimensions. The world keeps on revolving and more technologies has appeared to make life in all aspects easier. GOTO is a newly merged tech giant of Gojek and Tokopedia as one of the most popular e-commerce in Indonesia. In order to be accepted by society, GOTO creates a creative ad with a philosophical message that not only aims to market their products but also to introduce 'Gotong Royong,' which is the culture of Indonesia. Through Philip Mayring, Qualitative Content Analysis helps us to explain the Hofstede six cultural dimensions through the mixture of visual and audio found in GOTO's. In order the emphasize the “Gotong Royong” culture, by using Philip Mayring Qualitative Content Analysis, the video was divided into parts that represent the audio and visual elements, GoTo's video tries to show a cultural message that is "Gotong Royong" which is the culture of Indonesia. This research found that GOTO implemented their 'Gotong Royong' motto and combined it with the goal of establishing GOTO, which is to increase the country's economic growth.

The Effect of Culture on Performance Expectancy, Intention, and Trust in Mobile Payment Adoption

This study aims to investigate the role of culture at an individual level in the context of m-payment adoption. Specifically, it examines the effect of uncertainty avoidance and collectivism based on the Hofstede cultural dimensions on three important constructs in technology adoption as well as m-payment adoption which are performance expectancy, behavioural intention and consumer trust. The data was collected in Vietnam which ranked first in m-payment development worldwide in 2019 to test the hypotheses. The findings confirmed the significant impact of cultural variables in the context of mobile payment adoption. The positive and significant impacts of performance expectancy on behavioural intention and consumer trust, and consumer trust on behavioural intention are also confirmed which are aligned to previous studies. This research contributes to the body of literature of not only m-payment adoption, but also the impact of culture in m-payment adoption in particular and technology adoption in general.

Exploring student learning effectiveness in a case study of asynchronous online instruction for promoting intercultural church ministry in a Chinese–American seminary

ABSTRACT There has been an emphasis on intercultural competency in various professional training settings in the past decade. In Christian ministry, this skillset is highly desirable, and is an important learning outcome in theological education. This research aims to explore the effectiveness of asynchronous online instruction in promoting intercultural competency in a case study of a second-generation Asian-American ministry course in seminary. The research questions focus on cultural differences and adequate instructional strategies, as perceived by students. This research uses surveyed data based on Hofstede's cultural dimensions and qualitative interview data from a course instructor and the students. The results show that the cultural differences between the instructor and students bring positive challenges for students to experience the conflicts in processing and communicating cultural perspectives and ministry philosophies. This case study has suggested that a course learning on intercultural ministry would be most effective in focusing on students’ cultural exposures, reflection on contrasting cultural perspectives, and intercultural communication skills. Although the development of students’ intercultural competencies will not be complete by taking the course, the experience gained through it is significant and opens their eyes and mind to see the greatness of God's kingdom. One that is culturally diverse and continues to inspire their discovery.

The Cultural Dimensions of Hofstede in the Chinese Company Zhe Jiang Deman

The corporate culture in a company is essential to achieve organizational objectives. The objective of this research is to describe the cultural profiles of those who work as employees in a Chinese manufacturing company, taking Hofstede's cultural dimensions as a reference framework. Geert Hofstede describes organizational culture in a general way, using the following cultural dimensions: power distance, individualism-collectivism, masculinity-femininity, uncertainty avoidance, short- and long-term orientation, and indulgence-restraint. This article is a case study that uses frequency graphs and Cronbach's Alpha validation test, which allows us to contribute to a simple but scientifically orthodox and correct methodology to describe the organizational culture in any institution or company of any nationality. The results will allow companies or organizations to make strategic decisions.
 Keywords: organizational culture, Hofstede model, case study.

A critical analysis of the cultural differences of foreign employees working in China: a case study of the UK

This qualitative study proposes how to help cross-cultural communicators identify and address the causes and challenges of the cultural differences they encounter through the factors of cultural differences. The study was compared through a control group and data was collected and analysed by understanding interviewees' professional experiences to date as well as their experience of living in a foreign country. The participants were then asked specific questions using Hofstede's cultural dimensions theory and the concept of culture shock as a framework to inductively categorise the data while explaining through cultural dimensions theory and folk China theory.
 This study provides new insights for cross-cultural communicators on the cultural differences between China and Britain and provides a new understanding of the cultural differences between China and Britain through the cultural dimension theory and folk China theory. This study integrates the existing theories, especially proves that folk China theory can be used as theoretical support for the cultural dimension of the Sino-British data, and summarizes the current influences and underlying reasons for the Sino-British cultural communicators. In addition, the study provides effective recommendations and suggestions for a new generation of Sino-British cross-cultural communicators, both individually and collectively.

The disposition effect and its manifestations in South African investor teams

PurposeThe study endeavours to determine (1) whether the disposition effect exists among South African investor teams, (2) whether it is causally intensified by a set of psychosocial factors and (3) whether the disposition effect causally reduces investor welfare.Design/methodology/approachFollowing a natural field experimentation design involving a sample of investor teams participating in the 2019 run of the JSE University Investment Challenge, the authors use regression adjustments as well as bootstrap tests to investigate the casual implications of a set of psychosocial factors on the intensity of the disposition effect, as well on the attenuation of market-adjusted ex post returns (i.e. investor welfare).FindingsSouth African investor teams are susceptible to the disposition effect, and their susceptibility to the bias is associated with attenuated investor welfare. Furthermore, low female representation in an investor team causally intensifies the disposition effect, subsequently leading to a causal reduction in investor welfare.Originality/valueUsing evidence from real-world observation, the authors contribute to the literature on team gender diversity and investment decision-making, and – using Hofstede's (2001) cultural dimensions – the authors offer a comprehensive account for how differences in culture may lead to differences in gender-related disposition effects across different nationalities. The authors also introduce to the literature experimental evidence from the field that clearly demonstrates that – among South African investor teams – a causal relationship exists (1) between female representation and the disposition effect, and (2) between the disposition effect and investor welfare.

Cultivate customer loyalty in national culture: a meta-analysis of electronic banking customer loyalty

PurposeThis paper presents a meta-analysis of the electronic banking (e-banking) customer loyalty literature in the last 10 years. The study investigated the moderating role of national culture in the relationship between e-banking customer loyalty and its antecedents.Design/methodology/approachUsing a meta-analysis of customer loyalty in 19 countries, the authors incorporated national culture scores based on Hofstede's cultural dimensions to explore how the relative importance of e-banking customer loyalty antecedents varies across cultures.FindingsThe study revealed that national culture moderates the relationship between e-banking customer loyalty and its seven antecedents for four cultural dimensions, yet there was no significant moderation for satisfaction.Research limitations/implicationsThis study reviewed the relationships in the literature on customer loyalty in e-banking contexts, extending and enriching the current knowledge. However, some specific limitations, such as the non-use of qualitative studies and the clipping of adverse concepts, exist in the secondary data and should be considered.Practical implicationsThe results show that the seven antecedents affect e-banking customer loyalty to different degrees. Managers should incorporate cultural factors in e-banking customer management.Originality/valueOnly a few studies have assessed cultural differences in relation to e-banking customer loyalty. The authors address this need by offering deeper insights into how cultural dimensions moderate the relationships between e-banking customer loyalty and its antecedents through a meta-analytical review. The study findings offer managers a new perspective of leveraging the benefits of cultural differences, enhancing their decision-making in international business.

Regulatory accounting environment, cultural values and board efficacy in developing countries

PurposeThis cross-country study aims to investigate from an interdisciplinary perspective the impacts of the accounting regulation's strength and cultural values of long-term orientation (LTO) and indulgence (ND) on board efficacy in developing countries.Design/methodology/approachBoard Efficacy Index scores for 54 developing countries over the period 2007–2016 were employed to ascertain predictors of management's accountability to boards of directors and investors. Two types of explanatory variables – formal and informal – were employed in a pooled Ordinary Least Squares (OLS) analysis.FindingsThe research is the first to empirically show that more LTO and ND in a country have significant and positive effects on board efficacy. The findings also show that the strength of auditing and reporting standards (SARS) has a dominant impact on board efficacy, and the SARS' consideration is recommended in future cross-country research on board efficacy.Practical implicationsTo restore investor confidence and increase the credibility toward firms, regulatory authorities in developing countries are called upon to integrate compliance with accounting and auditing regulations combined with cultural values in the implementation of good governance practices.Originality/valueThis study contributes to the board efficacy literature in two significant ways. First, the study constructs and empirically tests a conceptual model that integrates both informal factors, the six cultural dimensions of Hofstede et al. (2010), and formal factors, the strength of accounting regulations. Second, conducting a study on a sample not widely used in the literature, over a fairly long period of time, highlights the governance characteristics of this context and strengthens the internal and external validity of the study.

Culture and the decision to adopt and use social media for corporate disclosures

PurposeThis paper aims to examine the influence of culture on the adoption and use of social media platforms for corporate disclosures by firms in a cross-country setting.Design/methodology/approachIt is contended that social media corporate disclosure (SMCD) is culturally influenced because the primary purpose of social media is to connect people in social settings, and social settings are distinguished by their cultures. Using a sample of 1,420 firms from 36 countries and Hofstede’s cultural dimensions, this study examines the direct effects of culture on SMCD and its moderating effects on the relationship between SMCD and the agency determinants of corporate disclosure.FindingsIt is found that cultural dimensions directly affect the adoption and use of SMCD. Additionally, the agency determinants of disclosure, size, leverage and growth are positively associated with the adoption, and use of SMCD, and these associations are moderated by the cultural dimensions.Research limitations/implicationsThe Hofstede cultural dimensions are broad country-level variables based on the culture of the majority in the population. However, larger countries have many cultures. This study does not cover within-country cultural effects on SMCD. It also does not cover firm-level culture and accounting culture because these factors are derived from national culture. This study adds culture as a country-level determinant of why companies adopt and use social media.Practical implicationsThe study provides investors and policymakers with an understanding of the nature of SMCD adoption and use in different cultural settings. It also makes managers aware of which cultural settings are more amenable to SMCD.Social implicationsSocial media, by design, have social implications. Examining the role of culture in the use of social media provides societal reasons for the use of SMCD by companies.Originality/valueSince social media are interactive in form rather than simply one-way disclosure devices, this study goes beyond the realm of corporate disclosure into the less researched area of corporate communication via social media.

The roles of national culture in affecting quality management practices and quality performance - multilevel and multi-country analysis

PurposeThis study investigates the role of national culture on the implementation and effectiveness of quality management practices. Specifically, the authors examine the dual roles of two of Hofstede's national culture dimensions (individualism and indulgence) in driving the implementation of people management practices and in moderating the relationship between people management and product quality performance.Design/methodology/approachThe authors’ dataset combines a survey of 976 firms from 22 countries with Hofstede's national culture index. A multi-level analysis, at firm and country levels, is used for investigating the interplay between two dimensions of national culture (individualism and indulgence) on people management practices and product quality performance.FindingsThe authors' findings show the negative relationship between indulgence (at country level) and people management practices (at firm level) while individualism (at country level) strengthens the relationship between people management and product quality performance (at firm level). Furthermore, the finding shows that the joint interaction between individualism and indulgence (at country level) moderates the relationship between people management and product quality performance (at firm level) where the relationship is strongest when individualism is high and indulgence is low.Practical implicationsUnderstanding the interplay between national culture and management practices is important for managers in making decisions on the practices managers should implement under different cultural contexts to gain the expected outcomes.Originality/valueThe authors' results challenge the universalist view that suggests that quality management practices (in this case people management practices) can be applied in any context effectively to achieve high product quality performance by showing that facets of national culture influence the implementation and effectiveness of people management practices and performance. The results also provide a fresh perspective on the role of indulgence, given that it is the newest dimension in Hofstede's framework. The authors also extend previous studies which commonly only examine the main and not interactive effects of different dimensions of national culture.

Effects of Culture on the Balance Between Mathematics Achievement and Subjective Wellbeing.

Previous studies suggested that culture have impact on students' mathematics achievement and subjective wellbeing, but few investigated the effects of culture on the balance between them. Drawing on Hofstede's cultural dimensions theory, this study investigated the effects of culture on balance between students' mathematics achievement and subjective wellbeing. Results showed the significant effects of cultural dimensions of long-term orientation vs. short-term orientation and indulgence vs. restraint. Students from countries of high long-term orientation and low indulgence culture were more likely to get both high mathematics achievement and high SWB. Besides, wealth-related variables (family SES and GDP per capita) and gender were also found to influence the odds ratio of balance. The findings confirmed the effects of national culture on the balance between mathematics achievement and SWB. Based on the findings, this study discussed the effects of long-term orientation and restraint culture and Confucian heritage culture's potential benefit. The results indicate that mathematics educators should consider cultural differences in educational practice and stress the importance and meaning of mathematics learning.

The Effect of Cultural Orientations on Country Innovation Performance: Hofstede Cultural Dimensions Revisited?

Purpose. One of the perspectives that receives the most attention from studies in international business is cultural dimensions. This is due to the greater complexity and incidence of cultural aspects in economic performance. This paper explored the moderation effect of cultural orientations on the creation of innovation trajectories related to levels of innovation and their outcomes in countries from various geographical areas between 2011 and 2021. Design/Methodology/Approach. A growth trajectories model is conducted to achieve the research’s aim, considering the country’s cultural orientation, innovation inputs (institutions, human capital and research, infrastructure, market sophistication, and business sophistication), and impact on innovation output. The Global Innovation Index, Globe Project, and Global Entrepreneurship Index databases used this analysis, containing data from nations on different continents. The trajectories’ analysis approach is utilized to achieve the desired goal, which allows for the assessment of the variations in innovation trajectory across countries with cultural tendencies towards performance and humane orientation from 2011 to 2021. Findings. The literature affirms positive results for various innovation inputs, but the results show differences in innovation outputs. The difference is related to their inputs (institutions, human capital and research, infrastructure, market sophistication, business sophistication), institutions, and market sophistication. Additionally, a difference depends on the country’s performance culture, generating options to obtain higher outputs, such as knowledge and creative results. Research Limitations/Implications. Based on the results achieved, an attempt is made to provide a different perspective on innovation, especially evaluating the results over time and identifying decreasing trajectories that affect the innovation results in countries with different economic development conditions and cultural characteristics. Practical Implications. The results achieved make it possible to strengthen the analysis of the countries’ strategies regarding innovation, especially in the permanent evaluation of the results, which encourages changes in the execution of innovative activities to maintain their performance over time. Social Implications. The contributions allow us to understand the dynamics of innovation in countries’ knowledge and creative outputs over time. Originality/Value. The trajectory analysis used in the data analysis is perhaps one of the most robust techniques for a time series analysis. This allows for identifying trajectories for the study’s independent variables and their influence on a country’s innovation.

Cultural values, national personality characteristics, and intelligence as correlates of corruption: A nation level analysis

Research on national corruption has primarily focused on economics and politics, whereas cultural factors and especially national personality characteristics have attracted less attention. In the present study, the influence of Hofstede's cultural dimensions, Schwartz's values, Eysenckian personality factors (EPQ), and national intelligent quotient (IQ) on Corruption Perception Index (CPI) scores were studied by using aggregated data from 64 countries and ecological design, i.e., correlations, partial correlations, multiple regression analyses, and mediation and moderation analyses. The sub-datasets included 35 countries for the EPQ, 46 countries for the Hofstede cultural values, 30 countries for the Schwartz value dimensions, and all 64 countries for the IQ. Both partial correlations and regression analyses in which GDP per capita was controlled emphasized the importance of national income in corruption so that high income was negatively related to CPI scores. Regression analysis results showed that the EPQ Lie scores, Hofstede's power distance, and masculinity, as well as Schwartz's hierarchy, mastery, and harmony, were positively, and individualism and intelligence negatively related to corruption. The mediation analyses showed that the effects of cultural values on corruption were mostly mediated by income (GDP per capita). Hence, the national culture influences the national income level, which, in turn, is related to corruption. The effect of individualism on corruption was moderated by income so that individualism was negatively related to corruption in countries with lower income. The results suggest that cultural factors should be considered in corruption studies and anti-corruption policies. Without taking into account the national cultural values, anti-corruption policies might not be perceived well by the public, compromising the effects of the interventions.

The Characteristics of Society in Indonesian Based on the Hofstede Cultural Dimensions: Measuring the Five Indonesian Island

There is culturally plural happens in nowadays life context in many ethnicities, in the same space. This cultural diversity leads to different communication and attitude in social society. The difference between the two cultures, the bigger between two cultures exist, the bigger challenge to adapt. Previous research stated that Indonesia is one Hofstede cultural group. But based on its location, Indonesia has various ethnic and historical sites. By seeing all of them, this paper has aimed to measure, to classify, and to do mapping on Indonesian cultural dimension characteristics. It has some of research steps by considering culture, management, and clustering of Indonesian cultural dimensions. The measurement using Hofstede was conducted to on 805 respondents, analyzed by using principal component analysis and been clustered by using principal component analysis and clustered using the agglomeration hierarchy clustering method. Respondents were coming from Indonesian native live in Sumatra, Java, Kalimantan, Sulawesi, Kupang and Ambon. The result showed that Indonesian culture could be categorized into 4 cluster groups; furthermore, it can be classified into 2 dimensions: intrinsic characteristics (1); environmental and future characteristics (2). The dimension of intrinsic characteristics consists of the power distance index (PDI), collectivism (COLL), and masculinity (MAS). At the same time, the dimension of environmental and future characteristics consists of uncertainty avoidance (UAI) and long-term orientation (LTO). The result of this study is a cultural mapping in Indonesian society that a potentially contribute to developing cultural pattern in smart cities.