Impact Of National Culture Research Articles

National culture and socially responsible fund flows

We investigate the impact of national culture on socially responsible investment (SRI) fund flows. Drawing on prior literature suggesting that non-financial attributes and social preferences explain SRI decisions, we hypothesize that cultural traits may drive SRI fund flows. We use a dataset covering mutual funds from 45 countries over the period 1997 to 2019. Our results reveal that higher SRI flows are associated with low masculinity and uncertainty avoidance and, to a lesser extent, to high religiosity.On the contrary, power distance and individualism affect conventional fund flows but do not have any significant differential effect on ethical money flows.

Sales and Marketing Automation and New Customer Conversion in International Markets

We examine the impact of both sales and marketing automation (SMA) and national culture on new customer conversion in new international markets. Based on theories of social exchange and signaling, we propose that the use of SMA increases the rate of conversion of new customers and reduces the time to conversion. Using a quasi-experimental research design, we collected data on 213 users that converted during a three-month recruitment campaign targeting nurses in four new country markets in Europe. The results of logistic and linear regression analysis confirmed that the use of SMA increases the rate of conversion and decreases time to conversion. Additional hypotheses about the impact of national culture on the rate of conversion and time to conversion were not supported. This study contributes to our theoretical understanding of new market entry and provides practical insights into the relatively new field of applying SMA when firms are entering new international markets.

Is business performance linked to organizational culture? A study from Tunisian SMEs through subjective measures

PurposeEvery independent organization would sincerely like to have competent, loyal and engaged people, as engaged persons are typically those who have significant attachment and active involvement in their organization. Without engaging people, high quality and productivity will not be achieved. The purpose of this study is to explore the impact of organizational culture derived from Tunisian customs of firm performance. Tunisian subcultures may not be represented in the national culture.Design/methodology/approachThis study carefully examines the impact of organizational culture on firm performance of Tunisian small and medium-sized enterprises. Results from 100 organizations and companies were collected using questionnaires for data collection analysis from employees occupying various positions in different hierarchical levels. Statistics used are tested by ordinary least squared regression. Furthermore, response bias, validity and reliability were the most important points examined by researchers.FindingsThese results reveal and confirm that the charisma that has been perceived by employees as energy state has an impact on the performance of the organization, regardless of the moderating effect of the uncertainty of the environment. Moreover, this study also showed that organizational culture has a significant effect on firm performance as well as on the interpretation of the organization, which depends on charisma.Originality/valueThe implication is that even in a country with many subcultures, excellent management still needs to pay attention to the impact of national culture at the organizational level on job attitude, work ethics and employee engagement, which are however, very limited. It is expected that this finding can contribute to the organization in that management becomes aware of the personality of the employees during their recruitments, especially the chief characteristic of being energetic. Managers need to create a conductive and rewarding environment for individuals to contribute positively.

The impact of cultural industry on economic and employment growth in China

The current study explores the impact of cultural industries on economic and employment growth in China using the data from 2004Q1-2018Q4, taking the quarterly data of National culture and related industries value added, Employment and Gross Domestic Product (GDP) as the main variables. In this study, we choose to work with the production function approach. The simultaneous equations are used to consider the impact of cultural industries on the economy and employment, and the lasso regression is used to screen out the factors that can most affect the economy and employment. The empirical results demonstrates that there is a positive impact of national culture and related industries value added on the economic growth and employment growth in China.

Cross-country differences in European firms’ digitalisation: the role of national culture

PurposeThis study investigates the relationship between national culture and the country level of firms' digitalisation, by applying Hofstede's cultural framework to the European Union member states. Although many studies have observed the impact of national culture on firms' innovation and information and communication technology (ICT) adoption, there have been no analyses of how cultural dimensions impact firms' digitalisation at the country level. This study intends to fill that gap.Design/methodology/approachUsing a pooled ordinary least square (OLS) model, this study analyses data from 27 European countries over the period from 2014 to 2018.FindingsThe results suggest the existence of a negative, significant, relationship between both masculinity and uncertainty avoidance, and the country level of firms' digitalisation. Indulgence is found to positively and significantly influence a country's level of digitalisation. Contrary to expectations, this study indicates a negative, significant, relationship between individualism and the degree of digitalisation. Power distance is found to have no significant impact.Originality/valueThis study contributes to the literature by showing how a country's various cultural dimensions help or hinder the level of firms' digitalisation in that country. Theoretical and managerial implications are presented, including suggestions for future research.

Impact of National Cultures on Global Leadership in Kenya

This paper examines the effects of national cultures on a Sglobal organizational leadership and how to understand and handle the cultures effectively. The paper examines the trends in the 21 st Century organizations and their relevance to global leadership practices especially the rapid development of technology and globalization which have led to the need for prioritizing the marketing function and its demand for diversity in the human capital and so has led to cultural diversity in the organizations themselves. The paper discusses the impacts of these cultures on the basis of the Hofstede cultural dimensions which are then discussed, each with its possible impact on the organization and how it can be handled in the Kenyan context. Keywords: Globalization, culture, diversity, cultural dimensions DOI: 10.7176/EJBM/12-18-06 Publication date: June 30th 2020

Cultural logic of German foreign direct investment (FDI) in service sector

Major studies on FDI looks at location, technology, policy, availability of natural resources, skilled labor, state support, climate, political and economic advantages for investment decisions. There are few studies that look at cultural factors affecting FDI decisions in service. This paper provides qualitative analysis of the impact of national culture on the flow of foreign direct investment in the service sector within the context of Germany. In particular, the paper discusses the cultural logic of German foreign direct investment in the service sector. It argues that inward FDI in the service sector was actually substantially more affected by cultural distance compared to outward FDI. The study finds that it is important to distinguish between inward and outward FDI to assess the cultural logic of German FDI in the service sector.

The impact of national culture on hotel guest evaluation – A big data approach

AbstractThe study utilized Hofstede's national cultural dimensions as the theoretical framework to examine the impact of national culture on guests' evaluation of hotel experience. Unlike previous studies which investigate the role of nationality by merely identifying differences between nations, this study analyzed different dimensions of cultural distance between the destination country and a guest's home nation. Using a big data approach, 25,480 guests from five countries reviewed 1,533 Parisian hotels on value, room, location, cleanness, and service. The results revealed that cultural distance dimension of masculinity, individualism, long‐term orientation, indulgence, and uncertainty avoidance significantly influence different aspects of hotel ratings.

Where do banks value corporate social responsibility more? Evidence on the role of national culture

Abstract Using a sample of loan facilities from 30 countries around the world, we investigate how national cultures affect the relationship between a firm's corporate social responsibility (CSR) performance and its bank borrowing costs. We find that firms with superior CSR performance are more likely to enjoy lower loan interest spreads in countries that exhibit higher levels of egalitarianism and harmony and/or lower levels of hierarchy and mastery. Further analyses reveal that the impact of national culture on the relationship between CSR performance and loan interest spreads is especially significant for borrowing firms with higher customer awareness, heavier R&D intensity, and more opaque information environment. We find national culture of the bank lender itself play an important role in shaping the relation between CSR performance and loan contracting as well. Overall, our findings highlight the important role of national culture in determining the economic consequences of CSR commitments and provide implications for corporate managers who make decisions about CSR strategies.

Analysis of the Impact of National Culture on Global Management:

Analysis of the Impact of National Culture on Global Management:

Cultural Influence on e‑Government Development

E‑government development varies across countries. This study aims to examine the impact of national culture on e‑government development across 78 countries. The dimensions of national culture are power distance, individualism, masculinity, long‑term orientation, uncertainty avoidance, and indulgence. The paper also examines the role of GDP per capita on e‑government development. The result shows that individualism and long‑term orientation are positively related to e‑government development, whereas power distance is negatively related to e‑government development. Also, GDP per capita is found to be significantly impacting e‑government development. Multi‑level interaction effect of GDP per capita and culture on e‑government development is discussed. The paper outlines the implications of results and strategies to design culturally acceptable e‑government policies. The paper argues that growth in economic prosperity cannot guarantee e‑government development, and national culture must be included in a holistic discussion of the development.

Impact of National Culture on Governance and Management of Family Businesses: Australia Versus India

A family is the primary social unit in which individuals are born and get acclimatised to societal culture. Most researches on family businesses are derived from frameworks developed in the United States or other Western societies. The premise of this article is that the way family businesses across the world are managed will vary drastically based on the culture of the society where these businesses operate. Using Australia and India as country examples, we apply Hofstede’s six dimensions of culture to formulate illustrative propositions highlighting the impact of culture on family business governance and management. These propositions are of particular significance to human resource management across areas of both governance and management, and concern, in particular, intergenerational matters associated with succession, management style, employment and developing next-generation leaders.

The joint effect of consumer and service providers’ culture on online service evaluations: A response surface analysis

National culture exerts substantial influence on consumers' expectations, satisfaction, and evaluations. Despite that, within a service-based context, two cultures are met, that of the customer and that of the service provider, the existing literature systematically explores the effect of customer culture in isolation neglecting the impact of the provider's culture or their joint effect. We fill this gap by considering the concomitant effect of customer and provider cultural factors on passenger evaluations of airline carriers using a large dataset of reviews that covers the majority of countries. Employing a response surface methodology, our study provides significant advantages over methods based on cultural distance scores in revealing more complex non-linear relationships. This multi-dimensional approach provides new insights for assessing the impact of national culture on customers' service perceptions and evaluations, thus bringing significant implications for researchers and service providers.

The impact of national culture on the adoption of environmental management standards

Purpose The purpose of this paper is to explore how national cultures contribute to explain the uneven diffusion of ISO 14001 across countries. The paper focuses on two of the cultural dimensions developed by the global leadership and organizational behavior effectiveness (GLOBE) project, namely, performance orientation and institutional collectivism. Design/methodology/approach A database containing information about the diffusion of ISO 14001 in 52 countries during the period 1999–2016 was built to carry out this research. The countries considered in this study represent about 90 percent of worldwide ISO 14001 certifications. The information was gathered from publicly available data sources: the ISO Survey, published every year by the International Organization for Standardization, the world development indicators of the World Bank, the cultural dimensions of the GLOBE project and the Index of Economic Freedom provided by The Heritage Foundation. Findings This research finds that both performance orientation and institutional collectivism influence the diffusion of ISO 14001. Whereas performance orientation slows down the diffusion of ISO 14001, institutional collectivism speeds it up. Additionally, this research shows that the slowing effect of performance orientation decreases in strength over time, while the accelerating effect of institutional collectivism becomes stronger. Originality/value The study adds to the understanding of the influence of national culture on the diffusion of environmental management standards, with an emphasis on ISO 14001. A key contribution of this research is that it explores how the influence of cultural dimensions change over time as a result of the development and maturation of ISO 14001.

The Relationship between Culture and Tax Evasion across Countries: Cases of the USA and Germany

ABSTRACT The purpose of this study is to compare the national culture for the Germany and the United States (US) and to analyze how the national culture affects the perception of tax evasion. This research analyzes the different types of tax evasions, the tax audit, and criminal investigation approaches in the USA and Germany. This study identifies important gaps in academic and practical understanding of tax evasion, and provides suggestions for revision of tax audit in the USA and Germany. The article provides a greater understanding of the impact of national culture on tax evasion and offers policy recommendations for the improvement of tax audit.

Impact of national culture on organizations’ use of selection practices

PurposeThe purpose of this paper is to investigate the impact of national culture on organizations’ use of selection practices, specifically to investigate the impact of in-group collectivism, uncertainty avoidance and power distance on interview panels, one-on-one interviews, applications forms, references, ability, technical and psychometric tests.Design/methodology/approachThis study uses survey data from the 2008–2010 CRANET database. It uses OLS regression analysis to test the impact of national culture on organizations’ use of selection practices.FindingsIn-group collectivism increases the use of panel interviews and technical tests, and decreases the use of one-on-one interviews and application forms. Uncertainty avoidance increases the use of panel interviews and technical tests, and a decrease in one-on-one interviews, applications ability, and psychometric tests. Power distance leads to an increase in one-on-one interviews, applications and ability tests, and a decrease in panel interviews, psychometric tests and references.Originality/valueThis paper investigates the use of the impact of national culture on selection practices. Specifically, it looks at the use of a large number of selection practices panel interviews, one-on-one interviews, applications and references, and several different tests, ability, technical and psychometric.

The role of culture and purchasing power parity in shaping mall-shoppers’ profiles

Global mall managers and retailers need to recognize and address variations among groups of shoppers, particularly how they vary between countries, to optimize their global operations. Despite many international mall-shopper studies, only few have compared countries using uniform constructs and descriptors. The present study sought to compare shopper segments from four countries––England, France, Ghana, and Morocco––to examine the impact of national culture (reflected through Hofstede's individualism/collectivism, uncertainty avoidance, long-/short-term orientation, and indulgence/restraint) and economic capacity (purchasing power parity) on shopper behavior. Findings suggest that culture shapes the nature of shoppers' profiles. However, purchase behavior and spending rates impacted more by culture in rich countries and more by the economic situation in poor countries. The implication is that international retailers and mall managers should consider national culture as well as economic factors in their global operations.

Availability of private credit – does culture matter?

PurposeThis paper aims to examine the impact of national culture on private credit availability. The authors particularly focus on the masculinity dimension, as previous studies have not been able to reconcile this dimension in terms of results aligning with expectations.Design/methodology/approachLeast-squares regression with country-cluster standard errors is used to estimate the impact of a nation’s cultural dimensions. Culture is assessed using Hofstede’s six cultural dimensions: masculinity, power distance, uncertainty avoidance, individualism, long-term orientation and indulgence. Estimation controls for country-level measures of economic growth and development, inflation, financial market development and the institutional, legal and bank environments. Data on more than 70 countries were collected from 2005 to 2014.FindingsThe authors find the masculinity dimension of culture has a significant negative impact on private credit access. Moreover, this result is driven by middle-income versus high-income countries. Interestingly, the authors also find the power distance dimension has a significant negative impact; however, this result is driven by high-income versus middle-income countries. Overall, these results are consistent with the authors’ argument that masculinity may be capturing traditionally defined gender roles, that masculinity (as the authors define it) is different from what power distance is capturing and that the impact of masculinity is influenced by a country’s economic stage.Originality/valueThe authors’ interpretation of masculinity, coupled with their results, presents researchers with an alternative perspective of a cultural dimension that previous studies have not been able to reconcile in terms of results aligning with expectations. Moreover, the authors show that the impact of the cultural dimensions on private credit differs for high- and middle-income countries, and thus has important implications.

National Culture, Firm Characteristics, and Dividend Policy

ABSTRACTThis study examines the joint impact of national culture and firm characteristics on dividend payouts by analyzing firms from 35 countries. We find that national culture, along with firm characteristics, such as sales growth, return on assets, and debt ratio, affects dividend payouts. More specifically, dividend payouts are less affected by firm characteristics in countries with a high uncertainty avoidance index compared with countries with a low uncertainty avoidance index. However, dividend payouts are more affected by firm characteristics in countries with high individualism compared with countries with low individualism. Our results support that national culture matters for dividend policy.

The Impact of National Culture on Leadership

Abstract The paper analyses the impact of national culture on leadership and leadership styles. It has been determined that national culture impacts leadership and leadership styles by defining the meanings that both leaders and their followers ascribe to the reality that surrounds them. The analysis includes the impact that the dimensions of national culture, identified in the Geert Hofstede’s and GLOBE’s researches, have on leadership. The paper analyses the impact that the dimensions of national culture have on two main dimensions used to differentiate leadership styles: authoritarianism–participative orientation and task orientation–people orientation. It has been determined that power distance and individualism– collectivism as well as uncertainty avoidance and assertiveness decisively impact the selection between authoritarian and participative leadership styles. The national culture’s “masculinity”–“femininity” dimension, as well as gender equality, performance orientation, people orientation, and future orientation correlated with it, impact the selection between people orientation and task orientation. In certain contexts, high uncertainty avoidance also impacts this leadership dimension. By intertwining two leadership styles’ dimension, four leadership styles are created, as well as cultural contexts in which each of the styles is favoured, preferred, and thereby more effective. Serbian national culture, with its assumptions and values, implies using of authoritarian people-oriented style.