Role Of National Culture Research Articles

The Role of National Culture in Shaping Auditing Strength: An International Evidence

The Role of National Culture in Shaping Auditing Strength: An International Evidence

A Cross-Cultural Study on the Effects of Government Control Policies on Mobility in COVID-19

This study sought to explore the impact of government policies aimed at reducing the spread of COVID-19, such as social distancing and quarantine, on the reduction in the mobility of people and the role of national culture in moderating this effect. To test this hypothesis, this study collected 21,150 sets of data from 57 countries worldwide and analyzed them using a multilevel growth model. In addition, the number of COVID-19-infected people, the number of people vaccinated, number of days since the first COVID-19, median age by country, population density, total population, and GDP per capita, which can affect mobility, were added as control variables in the study model. Notably, the results of our analysis revealed that the stringency of government policies had a negative effect on mobility and that this effect differed according to cultural characteristics. The findings of the current study have the following implications. First, differences between countries were explained by exploring the effectiveness of government policies in preventing the increase in infectious diseases based on a cultural perspective. Second, the results of this study provide policy implications that international policy makers can refer to apart from the context of the COVID-19 epidemic by presenting country-specific differences in government policies.

Accounting in the shadows of tradition: the role of national culture

PurposeCurrent research aims to investigate the relationships between Chinese national cultural values (uncertainty avoidance (UA), power distance, masculinity (MAS), individualism (IDV) and Confucian dynamism) and accounting practices (professionalism, uniformity, conservatism and secrecy).Design/methodology/approachA sample of 842 users/preparers of financial statements participated in this cross-sectional, questionnaire-based survey from China. Covariance-based structural equation modeling (CB-SEM) was used to test the proposed relationship.FindingsResults show that cultural values strongly impact financial reporting practices in China. Chinese society is characterized by low UA, high power distance, collectivism, future orientation (Confucianism) and masculine traits. These values show an overall preference for uniformity, conservatism and secrecy in financial reporting with weak professionalism. The findings show that Chinese society emphasizes law abidance, strict codes of conduct, written rules and regulations and respect for consistent orthodox measures.Practical implicationsThis study provides valuable input for policymakers in developing regulations and accounting standards in the Chinese market. Understanding the relationship between cultural dimensions and accounting values helps to address societal challenges and align policies with cultural values to acquire desired financial reporting values. Global firm managers must consider cultural dimensions in accounting when entering Chinese markets or negotiating with partners from different cultures. Findings also suggest local managers gain self-awareness of their cultural biases and accounting values, enabling them to navigate businesses and society's financial reporting needs.Originality/valueThis study enriches the existing literature on cultural and accounting practice studies by validating the role of stakeholder and social contract theories in Gray–Hofstede’s framework and highlighting the influence of dominant cultural values on accounting values. The study provides a unique empirical analysis of the Chinese market by using a questionnaire survey and structural equation modeling (SEM). Further, it also opens avenues for future research on the relationship between cultural dimensions, accounting practices and their global impact. These findings emphasize the importance of cultural sensitivity and adaptability, especially in multicultural environments.

The Role of National Culture in Stock Volatility: Evidence from International Stock Markets

The Role of National Culture in Stock Volatility: Evidence from International Stock Markets

The role of national culture in stock volatility: evidence from international stock markets

The role of national culture in stock volatility: evidence from international stock markets

Exploring the determinants of intention to purchase electric Motorcycles: The role of national culture in the UTAUT

Migration to electric motorcycles is urgent to reduce air pollution and prevent climate change. However, the adoption rate of electric motorcycles in Indonesia remains very low compared to the number of conventional motorcycles. This study aims to explore the determinants affecting the purchase intention of electric motorcycles. Because every country has a different culture, the key contribution of our research is developing a model to investigate the purchase intention by integrating national culture into the Unified Theory of Acceptance and Use of Technology (UTAUT). This study also investigates the direct and indirect effects of national cultural constructs such as power distance, uncertainty avoidance, collectivism, masculinity, and long-term orientation on purchase intention. This study used a survey and a non-probability method, especially convenience sampling, and obtained 936 valid responses. This study used the confirmatory factor analysis to analyze the construct validity and reliability and the partial least square–structural equation model to test its hypotheses. The results showed that the model could explain 63.6% of the variance in the purchase intention of electric motorcycles. Performance expectancy, effort expectancy, social influence, facilitating conditions, power distance, and long-term orientation significantly affected purchase intention, while uncertainty avoidance, collectivism, and masculinity were insignificant. Performance expectancy, effort expectancy, and social influence were found to mediate the relationship between national culture and the purchase intention of electric motorcycles. The study provides better suggestions to manufacturers and the Government to make more efficient planning and policies by considering the factors influencing purchase intentions.

Ethical Leadership and Corporate Social Responsibility in Diversified Business Groups: a Conceptual Model of Asian and Latin America

Purpose: This research provides a brief review which explores theories and concepts in International Business (IB) and management, covering global market dynamics, factors influencing foreign direct investment, the role of national culture in socially responsible policies, decision-making processes, evolving trends in CSR, ethical leadership's relationship with CSR in diverse business groups, and advancements in online communication, simulation games, and enterprise systems. Valuable insights for practitioners and scholars are provided, illuminating the complexities of the dynamic field of business and management.
 
 Design/Methodology/Approach: This research paper employs diverse methodological approaches, including literature review, qualitative analysis, and theoretical modeling, to investigate various aspects of IB and management. Through a qualitative synthesis approach, key themes and findings related to the research topic are identified.
 
 Findings: This research highlights the significance of digital platforms in delivering global consumer value. Cultural differences influence Foreign Direct Investment (FDI) inflows, shaped by host country norms. European SMEs' profitability, responsible conduct, and B2B relationship tendencies are affected by national culture dimensions.
 
 Theoretical Implication: This analysis reveals the impact of digital platforms, cultural differences, and national culture on global markets and international business. It emphasizes ethical leadership, institutional diversity, strategic direction, and human rights.
 
 Managerial Implication: Managerial implications for international business strategies include leveraging digital platforms for value creation, assessing cultural agility competencies in talent identification, considering socio-cultural context in framing victimization experiences, incorporating factors like corruption, contract enforcement, IP protection, and cultural compatibility in FDI decisions.
 
 Industrial Implication: Significant implications found for the industry in utilizing big data, including ethical and legal considerations. Cultural adaptation crucial for FDI strategies and CSR initiatives. Ethical leadership as a competitive advantage for CSR.
 
 Originality and Value: This literature review highlights the significance of cultural adaptation in global markets, exploring the impact of national culture on corporate behavior. It introduces a novel model for ethical leadership and CSR in Digital Platforms and Ecosystems (DPEs). It serves as a valuable resource for researchers, policymakers, and practitioners in the field of International Business, identifying research gaps for future studies.

Understanding the link between net promoter score and e-WOM behaviour on social media: The role of national culture

Our paper explores how individual customers’ promoter scores are linked to their electronic word-of-mouth (e-WOM) behaviour under different cultural contexts. We conducted two studies using experimental design to addresses these two research questions. The first study utilised a unique dataset comprising 4,864 hotel guests, enabling a comparison between the intentions suggested by their individual promoter scores and the actual e-WOM behaviour they subsequently engaged in on various online platforms. The second study used data collected from four different countries (I.e., US, UK, China, and Egypt) to validate the results of study 1 and to explore the influence of national culture on the relationships between individual promoter scores and the actual e-WOM behaviour. The findings of study 1 revealed that promoter scores have a significant positive effect on online message valence. Study 2 validated the results of study and it also revealed that the influence of net promoter score on positive WOM and negative WOM increases with increasing collectivism, power distance, uncertainty avoidance, and masculinity. Our research provides meaningful theoretical and practical implications for hotels managers.

National Culture and Financial Capability: A Global Perspective

The origins of financial capability assessed at the country level can be traced back to the socio-economic and quality of life factors. However, the role of national culture should be considered equally important. Hence, differences in national culture are hypothesized to correlate with average financial capability levels at the country level. This study attempts to answer an important question: What is the relationship between culture and financial capability at the country level? The data for this study originate from four diverse sources provided by the World Bank (two datasets), United Nations, and Hofstede Insights. The final dataset includes data from 137 countries. As a measure of financial capability, we use an aggregate index combining financial behavior (account ownership) and financial knowledge. Culture is measured using six dimensions of national cultures from Hofstede Insights: Power Distance, Masculinity, Uncertainty Avoidance, Individualism, Long-Term Orientation, and Indulgence. The results show that certain dimensions of culture are strongly correlated with financial capabilities at the country level even after controlling for the level of economic development. Positive relationships between financial capability and three cultural factors—Individualism, Long-Term Orientation, and Indulgence—are noted. In addition, Uncertainty Avoidance is negatively associated with financial capabilities. The observed relationships are non-linear. Specifically, Individualism and Long-Term Orientation are positive correlates of financial capability up to a certain level (the score of 75 and 50, respectively, on the scale 0–100), Individualism is a positive correlate starting at the score of 25, while Uncertainty Avoidance is a negative correlate up to the score of 75.

Managing digital transformation in a global environment: The role of national culture

In today's fast-changing business environment, digital transformation has become an essential strategic imperative for companies seeking to maintain a competitive edge. However, research on the effect of national culture on digital transformation is lacking. This study seeks to address this gap by investigating the effect of national culture on digital transformation, with a focus on the mediating role of digital competencies and information system management practices, as well as the moderating effect of leadership. 250 managers and employees with digital transformation experience across various industries in Saudi Arabia were surveyed. Structural equation modeling (SEM) was employed to analyze and test the research hypotheses. The findings demonstrate that national culture significantly affects digital transformation, with digital competencies and information system management practices acting as mediators. Furthermore, the study discovered that leadership plays a moderating role in the relationship between national culture and digital transformation. The positive impact of national culture on digital transformation is amplified when there is a transformational leadership style in place. These insights hold significant implications for organizations embarking on digital transformation initiatives, emphasizing the importance of fostering a culture encourages digital innovation and risk-taking, investing in digital capabilities and effective information system management, and nurturing transformational leadership to drive successful digital transformation efforts.

The role of national culture in renewable energy consumption: Global evidence

This study examines the relationship between Hofstede’s six cultural dimensions and renewable energy consumption, considering global evidence from 99 countries using a panel data framework for the period covering 1991–2018. Employing a pooled ordinary least square model and Lewbel two-stage least squares technique, we find that the power distance index, uncertainty avoidance index, masculinity index, and long-term orientation index negatively influence renewable energy consumption. In contrast, the indulgence index has a positive impact on renewable energy consumption. Moreover, we find that the impact of the individualism index on renewable energy consumption is mixed. A battery of alternative econometric techniques, including the Driscoll–Kraay estimator, ensures the robustness of the results. Finally, the empirical evidence suggests policy reforms and global initiatives to integrate cultural traits into national strategies for renewable energy consumption, in order to achieve the sustainable development goals.

Consensus on the role of culture in restraining financial crime: a systematic literature review

PurposeNo country is free from financial crime issues. Therefore, this paper aims to discover how to control financial crime from the perspective of national culture.Design/methodology/approachThis study conducted a bibliometric approach and systematic literature review analysis of 47 publications in the Scopus database.FindingsBibliometric and content analyses show that national culture is more often associated with tax evasion, money laundering and corruption. The role of national culture is less investigated currently in the schemes of financial statement crime, workplace fraud and cybercrime. Overall, the study concludes financial crime can be prevented by developing a culture that supports anti-fraud measures. These include individualized country profiles, feminism, low power distance, tolerance for uncertainty, short-term orientation and restraint.Originality/valueThis research provides clear knowledge of the role of the six dimensions of national culture in fighting financial crime. Finally, this study is also valuable for decision-making in designing more effective financial crime prevention programs.

Global diffusion ofCOVID‐19 policies: The role of geographic, institutional, and cultural cues

AbstractIn an unprecedented global crisis, like the COVID‐19 pandemic, when vertical global governance plays a relatively minor role, government leaders must obtain policy information cues from other governments' behaviors horizontally. This study builds on the policy diffusion literature to examine the distinct role of geographic, cultural, and institutional peers in influencing a country's policy adoptions throughout a diffusion episode. We theorize that in the case of COVID‐19, policy‐culture fit enhances policy learning, leading cultural cues to exert a more pronounced diffusion influence than geographic and institutional cues over time. Our empirical analysis leverages worldwide data tracking the daily adoption of nine universal COVID‐19 non‐pharmaceutical policies from January 1, 2020 to June 1, 2021 in nearly 100 countries. We show that geographic and institutional proximity are initial sources of policy cues affecting adoption. But their effects fade over time while that of cultural cues grows in the later stage of a diffusion episode, illustrating the role of policy learning fueled by cultural fit. This research deepens our understanding of policy diffusion dynamics, shedding light on the role of national culture in policymaking and design in comparative policy studies.

Culture and integration of Eurozone life insurance markets

This paper provides the first evidence on the role of national culture in the integration of Eurozone life insurance markets. It analyzes seven markets over a sixteen-year sample period that includes the financial crisis. We focus on three cultural values, which are individualism, trust, and hierarchy. The results indicate that collectivism culture increases cost and revenue performance and integration of Eurozone life insurance markets. Trust contributes to this integration, particularly in financial crisis, and egalitarian culture facilitates it in non-crisis time. We find that these relations prevail for unaffiliated single companies, but they weaken or do not even hold for groups of insurers. Our findings are robust with tests designed to alleviate endogeneity concerns.

Ethical Leadership and Corporate Social Responsibility in Diversified Business Groups: A Conceptual Model of Asian and Latin America

Purpose: This research provides a brief review which explores theories and concepts in International Business (IB) and management, covering global market dynamics, factors influencing foreign direct investment, the role of national culture in socially responsible policies, decision-making processes, evolving trends in CSR, ethical leadership's relationship with CSR in diverse business groups, and advancements in online communication, simulation games, and enterprise systems. Valuable insights for practitioners and scholars are provided, illuminating the complexities of the dynamic field of business and management. Design/Methodology/Approach: This research paper employs diverse methodological approaches, including literature review, qualitative analysis, and theoretical modeling, to investigate various aspects of IB and management. Through a qualitative synthesis approach, key themes and findings related to the research topic are identified. Findings: This research highlights the significance of digital platforms in delivering global consumer value. Cultural differences influence Foreign Direct Investment (FDI) inflows, shaped by host country norms. European SMEs' profitability, responsible conduct, and B2B relationship tendencies are affected by national culture dimensions. Theoretical Implication: This analysis reveals the impact of digital platforms, cultural differences, and national culture on global markets and international business. It emphasizes ethical leadership, institutional diversity, strategic direction, and human rights. Managerial Implication: Managerial implications for international business strategies include leveraging digital platforms for value creation, assessing cultural agility competencies in talent identification, considering socio-cultural context in framing victimization experiences, incorporating factors like corruption, contract enforcement, IP protection, and cultural compatibility in FDI decisions. Industrial Implication: Significant implications found for the industry in utilizing big data, including ethical and legal considerations. Cultural adaptation crucial for FDI strategies and CSR initiatives. Ethical leadership as a competitive advantage for CSR. Originality and Value: This literature review highlights the significance of cultural adaptation in global markets, exploring the impact of national culture on corporate behavior. It introduces a novel model for ethical leadership and CSR in Digital Platforms and Ecosystems (DPEs). It serves as a valuable resource for researchers, policymakers, and practitioners in the field of International Business, identifying research gaps for future studies.

Expanding strategic flexibility through organizational culture, industry 4.0 and market orientation

PurposeThe purpose of this study is to build a theory on management investigating the relationship between organizational culture and strategic flexibility in firms, and how this relationship is affected through industry 4.0 capabilities and the market orientation of firms.Design/methodology/approachAs a methodological approach, this paper uses a rich combination of literature review and exploratory interviews with managers and academics. Data were collected from 379 industrial managers; confirmatory factor analysis (CFA) and finally structural equation modeling (SEM) were performed to validate the data and examine the hypothesized relationships.FindingsThe results show that organizational culture drives firms to strategic flexibility, but the introduction of industry 4.0 capabilities and market orientation fully mediate this relationship, revealing their significance to strategic flexibility.Research limitations/implicationsAll the respondents of the study's dataset were from Greek firms; the role of national culture should be considered. Moreover, the comprehension of I4.0 is a quite recent concept that is still being formulated, this feature may modify the results of future studies.Practical implicationsManagers should allocate resources for the concurrent adoption of digital technologies capabilities and suitable market-oriented strategies in order for them to be key drivers for enhanced strategic flexibility.Originality/valueThe current state of knowledge of both theory and practise for critical organizational factors such as organizational culture, strategic flexibility, industry 4.0 capabilities and market orientation will be extended.

Overconfidence among solo entrepreneurs: the role of national culture

PurposeThis study investigates entrepreneurial overconfidence (EOC) levels among solo entrepreneurs at the country level. Although transitions from solo to employer entrepreneur are relatively rare, the solo self-employed have become an important source of potential job creation by virtue of the sharp increase in their numbers in the past two decades. When EOC levels are too high, job creation ambitions may be unrealistic and unrealised. Unrealised ambitions and business failure can lead not only to psychological and financial costs for the individual entrepreneurs involved, but at the societal level also to wasted government resources, and increased costs for the entrepreneurial ecosystem as a whole. Therefore, it is important to know more about the entrepreneurial overconfidence levels of solo entrepreneurs in different countries and their determinants.Design/methodology/approachUsing Global Entrepreneurship Monitor data for 71 countries over the period 2013–2016, the authors construct a new measure of entrepreneurial overconfidence of solo entrepreneurs and relate this to three recently developed indicators of national culture.FindingsThe findings indicate that EOC levels are positively related to Joy (versus Duty), and negatively related to Trust (versus Distrust). Finally, no significant relationship between entrepreneurial overconfidence and Individualism is found in the study (versus Collectivism).Research limitations/implicationsGiven the lack of literature examining the relationship between EOC levels and cultural variables hypotheses were developed using the existent body of knowledge in the area, which is at the early stage of development. The hypotheses derivation has used mostly theoretical arguments relating to the link between national culture and overconfidence of entrepreneurs in general, rather than relating specifically to solo entrepreneurs. The measure of EOC uses expectations of employment growth to proxy overconfidence, but other measures of entrepreneurial success may also be explored.Practical implicationsAs the hiring of employees can be a costly process (Coad et al., 2017), it is important that entrepreneurs have realistic expectations of what it requires to hire employees. This is especially the case for solo entrepreneurs since they do not have experience of hiring their own employees. This paper addresses such issues at an aggregate level by exploring what factors explain country differences in overconfidence levels of solo entrepreneurs.Social implicationsIt is worthwhile to distinguish between solo and employer entrepreneurs when studying their EOC levels, as the ambitions of these two types of entrepreneurs are different. Empirically, this study introduces a new measure of EOC tailored towards the solo self-employed.Originality/valueThis study contributes to entrepreneurship literature by expanding current knowledge on entrepreneurial overconfidence at the country level. Past research has studied EOC at the individual level, however limited research exists on the phenomenon of EOC from a country level perspective. This is important as unrealised entrepreneurial ambitions may not only create substantial costs for the individual entrepreneurs involved, it may also lead to substantial societal costs, including waste of government resources.

The Role of National Culture as an Indicator of Evidence of Sustainable Development

Abstract Research background: In recent decades, scientists have focused on sustainable development goals. Cultural issues are evident in sustainable development, but the scientific inclusion of cultural aspects remains a challenge. Purpose: The study aims to link cultural aspects and sustainability goals. Also, the purpose of this study, is to use the composite cultural index to include the latest research findings on this matter and extend them to cover the six cultural dimensions identified in the Hofstede cultural model. Yeganeh (2011) proposed a methodology for compiling a composite cultural index, but the author included only a few cultural dimensions. The authors of this article present an analysis of fifteen Sustainable Development Goals in the 27 countries of the European Union to rank countries according to the contribution of national culture to the Sustainable Development Goals. Research methodology: The methodology used an international expert survey on the dimensions of culture and the constructed correlation matrix. Results: The results show a correlation between the four goals of sustainable development, although the direction is different: one has a positive relationship, and three have a negative one. Novelty: The article’s value is that the authors created a composite cultural index for research on sustainable development and expanded the results presented by other authors.

Where does ESG pay? The role of national culture in moderating the relationship between ESG performance and financial performance

This study investigates the moderating role of a country’s culture as an external contingency factor in the relationship between a firm’s environmental, social, and governance (ESG) performance and financial performance. Using ESG performance data of 4978 firms from 48 countries for 17 years, we argue that the financial return from engaging in ESG varies depending on the countries’ cultural aspects because stakeholder evaluations and appreciations for a firm’s ESG performance differ across nations. We find that a country that espouses a culture of high individualism or masculinity tends to appreciate and reflect on this more explicitly, strengthening the relationship between a firm’s ESG performance and financial performance. Contrastingly, in a country with a culture of high power distance or uncertainty avoidance, firms’ ESG efforts are less likely to be associated with financial performance. Our findings have important implications for multinational enterprises facing various cultural environments when dealing with heterogeneous stakeholder demands across countries.

A contingency approach to HRM and firm innovation: The role of national cultures

AbstractCompanies adopt various HRM practices to enhance employees' abilities, motivations, and opportunities to foster innovation. Are these practices universally effective or culturally contingent? In this study, we draw on the Ability‐Motivation‐Opportunity (AMO) model and examine the effectiveness of three representative practices using a dataset of 304 companies from 13 countries or regions. We find that HRM practices need to fit in a supplementary/complementary way with national cultures to facilitate firm innovation: 1. cross‐functional training (i.e., an ability‐enhancing practice) is more effective in collectivistic rather than individualistic cultures (supplementary fit); 2. financial rewards for innovation (i.e., a motivation‐enhancing practice) are more effective in masculine rather than feminine cultures (supplementary fit); and 3. employee participation (i.e., an opportunity‐enhancing practice) is more effective in high rather than low power distance cultures (complementary fit). By building on the notion of supplementary/complementary fit, these findings extend our knowledge of the AMO model in the context of HRM and innovation management with a cultural contingency perspective.