scholarly journals Religion, national culture and cross-country differences in the use of trade credit

2019 ◽  
Vol 15 (3) ◽  
pp. 350-370
Author(s):  
Markus Mättö ◽  
Mervi Niskanen

Purpose The purpose of this paper is to investigate whether religion or national culture can explain previously observed cross-country variation in trade credit. Design/methodology/approach Using the firm-level SME data from 35 European countries, religion and cultural factors of Hofstede and Schwartz, the authors provide new evidence on the determinants of the cross-country variation in trade credit. Findings The results indicate that religion and national culture are associated with trade credit. The authors find that the levels of trade credit are higher in Catholic countries than in Protestant ones and that peoples’ religiousness has an impact on trade credit only in Catholic countries. The authors also find that Hofstede’s cultural dimensions, such as power distance and uncertainty avoidance, are positively associated with trade credit. Practical implications Overall, authors’ findings indicate that religion and national culture are important determinants of trade credit management, and that the association between commonly used cultural values and trade credit depends on the religious, legal, and financial environment. Originality/value To the best of authors’ knowledge, this is the first study to research the relationship between national culture and trade credit.

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Marta Valverde-Moreno ◽  
Mercedes Torres-Jimenez ◽  
Ana M. Lucia-Casademunt

Purpose There is a growing consensus among human resources researchers and professionals that a participative environment can enhance job satisfaction, commitment, employee motivation and productivity. Moreover, globalization has caused that organizations operate in a huge number of culturally diverse countries. Studies suggest that understanding national culture as a prerequisite to implementing management initiatives such as employee participation in decision-making (PDM) acquires special interest. Therefore, the purpose of this study is to investigate the influence of cultural values on PDM in European organisations. The fulfilment of this purpose entails the following specific objectives: to measure the level of PDM in each European country; to examine the relationship between the six cultural dimensions proposed by Hofstede in 2010 (power distance, uncertainty avoidance, individualism/collectivism, masculinity/feminity, long term/short term and indulgence) and the PDM level of the organisations studied; and to define the national cultural profile of organisations that promote PDM the most and those that do the least. Design/methodology/approach One factor analysis were applied to test the proposed hypotheses on a sample of almost 25,000 workers in 31 European countries (from the 6th European Working Conditions Survey) to identify direct employee PDM corresponding to each organisation included in the sample. Multiple linear regression was performed to test the hypotheses about the relationship between PDM and Hofstede culture values. Previously, a correlation analysis was performed between the independent variables of the regression model to examine the possibility of bias in coefficient significance tests because of multicollinearity. Finally, it presented a ranking of the analysed countries according to their PDM, including the value of their cultural dimensions. This information could be used to define the cultural profile of European participative countries. Findings The findings advance our understanding of how culture influencing on employee PDM in European organisations. Indulgence and masculinity are the most influent cultural dimensions. Moreover, results provide the cultural profile of those European countries that promote PDM the most and the least. Research limitations/implications The research is based only on the perceptions of workers about their PDM but does not consider the managers’ opinion. Moreover, the document analyses the national culture as a single value shared by all the inhabitants of a country without considering the subcultures existing in it. Furthermore, future research should be conducted to analyse the influence of other conditions (such as activity sector, company size and owner public or private) on PDM–culture relationship. Practical implications This study can be aid to managers in understanding the cultural profile of the country where their companies operate and the cultural differences between their employees. In this manner, they could implement the appropriate practices to promote the direct participation of employees in decision-making. Originality/value To broaden the knowledge, this is the first study investigating PDM across six cultural dimensions. The globalized and international business environment generates new challenges to multinational organizations that could pursue to increase direct PDM to get its benefits (a higher efficiency, performance, motivation, commitment and loyalty by the employee) in culturally diverse societies. The cultural values of the countries where organizations are located affect direct employee PDM. In particular, in this study, this occurs primarily with the variables masculinity, long-term orientation and indulgence. Moreover, this is a finding of high relevance because there is no empirical evidence in the effect of indulgence and long-term orientation on PDM because they were added later to Hofstede’s values.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sarah Taylor Hartsema ◽  
Chris Harris ◽  
Zhe Li ◽  
Thibaut G. Morillon

PurposeThe purpose of this paper is to identify whether the rise in intangible asset investment is related to trade credit investment and whether this relationship is driven by financial constraint and other firm factors.Design/methodology/approachThe study conducts fixed effect regressions testing the relationship between trade credit investment and intangible asset levels. The relationship is further examined for all firms based on product type, financial constraint and sales growth.FindingsThere is a negative relationship between investment in trade credit and the level of intangible assets as a proportion of total assets. This negative relationship is largely explained by firms in industries that traditionally utilize more trade credit, firms with financial constraints and firms with low sales growth.Practical implicationsThe level of investment in intangible assets continues to rise, while investment in trade credit is declining. This paper is the first to identify whether these trends could be related and to provide some explanation why.Originality/valueThis study is the first to link investment in trade credit with investment in intangible assets. There is a negative relationship that is most pronounced for firms that typically offer more trade credit, that are experiencing financial constraint and that are experiencing low growth.


2016 ◽  
Vol 33 (6) ◽  
pp. 894-920 ◽  
Author(s):  
Boryana V. Dimitrova ◽  
Bert Rosenbloom ◽  
Trina Larsen Andras

Purpose The purpose of this paper is to investigate the relationship between national cultural values and retail structure. Design/methodology/approach The authors use a panel data set of 67 countries over the period 1999-2012. Findings The results demonstrate that national cultural values, measured with the World Values Survey’s traditional/secular-rational and survival/self-expression dimensions, affect retail structure. Research limitations/implications While marketing scholars have examined the relationship between demographic and competitive factors and retail structure, there has been a substantial body of anecdotal evidence showing that national culture can also drive retail structure development. In order to enhance the understanding of the relationship between national culture and retail structure, the authors empirically examine the impact of national cultural values on retail structure. Originality/value This study is the first one to empirically examine the impact of national culture on retail structure. The authors thus help advance retail structure research the primary focus of which has been on investigating the impact of demographic and competitive factors on retail structure. This study is especially relevant to international retail managers who coordinate retail operations in multiple countries around the world. These managers need insight into the impact of national cultural values on retail structure in order to devise effective retail strategies for each host market.


2015 ◽  
Vol 22 (2) ◽  
pp. 278-296 ◽  
Author(s):  
Jasmine Tata ◽  
Sameer Prasad

Purpose – Organizations are implementing sustainability initiatives in different countries with varied socio-cultural systems. The literature on sustainability, however, does not present a clear picture of how national culture can influence interpretations of the meaning of sustainability and how these differences in interpretation can result in different sustainability practices. The purpose of this paper is to build upon the current literature by identifying mechanisms (i.e. sustainability beliefs and perceptions) that mediate the relationship between national cultural values and organizational sustainability initiatives. Design/methodology/approach – The authors examine the literature on culture and sustainability practices, and develop a conceptual model that identifies how cultural values influence the sustainability initiatives of organizations. Several propositions are identified that specify relationships among the constructs, and guidelines are provided for testing the model in future research. Findings – The model posits that national culture influences sustainability beliefs and perceptions, which in turn influence the quantity and scope of sustainability initiatives. The relationship between sustainability beliefs and organizational sustainability initiatives is moderated by sustainability orientation and organizational capacity. Originality/value – The model can help researchers and practitioners better understand the meaning of sustainability in the context of international business by identifying the mechanisms that explain the link between culture and sustainability. It can also help researchers generate hypotheses for future research. Finally, the model can guide multinational corporations attempting to drive sustainability programs through their subsidiaries as well as international developmental agencies trying to develop programs in partnership with local non-governmental organizations (NGOs).


2019 ◽  
Vol 23 (4) ◽  
pp. 427-443
Author(s):  
Minsoo Kim ◽  
Candace White ◽  
Chansouk Kim

Purpose Studies have explored expectations of corporate social responsibility (CSR) among cultures, but findings are mixed. A more nuanced view of cultural dimensions rather than using Hofstede’s aggregate country scores can offer a stronger empirical foundation for studying the effects of culture. Based on two cultural dimensions and Carroll’s four-dimensional model of CSR, the purpose of this paper is to test the relationship between individualistic/collectivistic values and individuals’ expectations of different types of responsibilities (economic, legal, ethical and philanthropic), the relationship between long-term values and individuals’ expectations of different types of responsibilities and the degree of skepticism about CSR related to these values. Design/methodology/approach This study surveyed panel participants in two countries, South Korea (collectivistic and long term) and the USA (individualistic and short term), chosen because they are at extreme ends of the cultural values continuum. Multi-dimensional aspects of the cultural variables were tested in the samples rather than using national scores as proxy variables for culture. Data were quantitative and various statistical tests including structural equation modeling were used for analysis. Findings The findings show that horizontal collectivism and the planning dimension of long-term orientation are positively associated with CSR expectations, whereas the tradition dimension of long-term orientation is negatively associated with CSR expectations. In addition, vertical individualism is positively associated with skepticism toward CSR activities. Research limitations/implications The differences in types of individual-collectivism (horizontal and vertical) as well as the different aspects of long-term orientation had an effect on the results, pointing to the importance of exploring the nuances of the dimensions as well as the importance of testing them within the sample rather than using aggregated national scores. Originality/value Previous studies that used a proxy variable for culture assumed that collectivistic cultures have higher expectations for CSR. While empirically supporting the assumption of the relationship between cultural factors and CSR expectations at the individual level, the study found that people who view themselves as autonomous within a group but accept inequality within the group (vertical individualism) are more likely to be skeptical of CSR activities and suggests that skepticism about CSR may be more closely related to individual viewpoints or to particular contexts or particular corporations rather than to cultural factors, which has implications for international corporate communication.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ricardo Machado Leo ◽  
Guilherme Freitas Camboim ◽  
Ariane Mello Silva Avila ◽  
Fernanda Maciel Reichert ◽  
Paulo Antônio Zawislak

Purpose This paper aims to identify the winning combination of innovation capabilities for selected Brazilian agribusiness firms along different value chain links. Design/methodology/approach Adopting a quantitative approach, the authors analyzed the relationship between innovation capabilities and innovative performance of 300 agribusiness firms through a multi-regression technique. Findings The results showed that transaction, management and development capabilities can improve agribusiness firms’ performance in underdeveloped value chains. Research limitations/implications For future research, the authors recommend analyzing further links such as traders and retailers to find the innovation capability for the entire agribusiness value chain. Practical implications Upstream firms should adopt new management techniques and tools, efficiently using their resources, while downstream firms should absorb and transform new technologies into products and processes. Social implications The authors suggest formulating public policies that propose the recombination of innovation capabilities to organize agribusiness firms and avoid commodity-oriented market dependence. Originality/value The literature on agribusiness explains innovation at the chain level, based primarily on scientific advancements rather than on innovation at the firm level. In this sense, this study provides empirical evidence that can help boost innovation in agribusiness firms.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Paul Alexander Pounder

Purpose This study aims to provide insights into the conceptualization of social entrepreneurship and the extent to which culture affects it. Design/methodology/approach First, social entrepreneurship is conceptualized and then the research integrates Hofstede’s framework, with some consideration for Inglehart’s and Schwartz’s framework in exploring the effects of cultural values. Findings Seminal studies on social entrepreneurship delineated acting entrepreneurially and having a social mission but failed to consider cultural contextualization. After illustrating Hofstede’s, Inglehart’s and Schwartz’s frameworks for cultural dimensions, the research shows that different cultural dimensions can provide a better understanding of social entrepreneurship. Research limitations/implications This study has a limited scope as it relies on narrow conceptualizations of social entrepreneurship and culture. Practical implications Future national agendas should embrace varying notions of shared obligation across support institutions and enterprises as they attempt to address social problems across differing cultures. Originality/value This research contributes to the literature by providing an insightful understanding of the influence of culture on social entrepreneurship through integrating widely used cultural dimensions.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Asma Yousuf ◽  
Husam Aldamen

Purpose This study aims to bridge the gap in the scarce and inconclusive literature concerning the impact of gender diversity on earnings quality by positioning this relationship within an institutional context. It aims to investigate the moderating effect of different cultural dimensions and accounting values on the relationship between board gender diversity and earnings quality. Design/methodology/approach The study uses an international sample from 46 countries (3,092 public firms) for the year 2017. A two-level hierarchical linear regression model is used to test the moderating effect of Hofstede’s cultural dimensions and Gray’s accounting values on diversity and accruals quality relationship. Findings The findings suggest a positive relationship between board gender diversity and earnings quality. Results hold valid after controlling for endogeneity effect. More importantly, regarding national culture, results indicate that power distance, individualism, uncertainty avoidance, professionalism, uniformity, secrecy and conservatism moderate the relationship between female directors and accruals quality. Furthermore, different levels of female representation are essential on boards of different societies to use the benefits of gender-diversified boards in enhancing earnings quality. Research limitations/implications The study provides empirical evidence on the effectiveness of various worldwide movements toward increasing board gender diversity. Additionally, the results speak directly to gender quota regulatory bodies suggesting that “no size fits all” for gender quota requirement. Originality/value The study contributes to the stream of literature concerning gender diversity and earnings quality by investigating this relationship through the lens of national culture and emphasizing the importance of considering institutional factors in examining social interactions.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Woonsun Paek ◽  
Hyerin Ryu ◽  
Sunkyu Jun

Purpose The purpose of this study is to show that a corporate brand with a long history coupled with relevance to the present obtains heritage-based value in society and the second aim is to examine a boundary condition in which the heritage-based value of a corporate brand increases the firm’s financial value. Design/methodology/approach A survey was conducted to investigate when and how a corporate brand obtains its heritage-based value in society and archival analysis was conducted to analyze the relationship between the heritage-based value of a corporate brand and the firm’s financial value. Findings The longevity of a corporate brand increased its heritage-based value, particularly when the brand was perceived to be temporally continuous, through the enhancement of authenticity perception and the heritage-based value had a positive effect on the firm’s financial value for younger firms. Research limitations/implications This study extends the benefits of the heritage association of a corporate brand to the firm level but has a limitation in its cross-sectional method. Practical implications The study results justify monetary costs incurred in the course of developing and cultivating a brand’s heritage association. Originality/value It is believed that this study is the first quantitative research examining the relationship between the heritage-based value of corporate brands and firms’ financial value.


2019 ◽  
Vol 32 (3) ◽  
pp. 411-436
Author(s):  
Juan Francisco Martín-Ugedo ◽  
Antonio Mínguez-Vera ◽  
Fabrizio Rossi

Purpose The purpose of this paper is to examine the relationship between women on the board of directors and firm performance in a comparative analysis between Italy and Spain. Design/methodology/approach The generalized method of moment is employed to examine this relationship in a sample of 1,393 firm-year observations. Findings The results show that the presence of women on the board has a positive impact on the performance of Italian and Spanish firms. However, when the whole sample is divided into Italy and Spain, some results are remarkable. For Spain, the presence of women on the board has a positive influence on firm performance, whereas for Italy the authors find a negative and significant effect on firm performance. This study also finds that the “masculinity” dimension has a negative impact on firm performance. Practical implications The results of this study have several practical implications. First, masculinity differences within the countries can have a large impact on firm performance and can explain some differences between similar countries. Second, the legal system of countries might not explain adequately some differences in the decision-making process. Third, cultural values and thinking styles, in terms of masculinity, might better explain why the results on the relationship between female directors and firm performance are mixed. Fourth, the findings suggest that it is very important to promote gender equality, not only by passing laws but also taking action about the educational system. Originality/value To the best of the authors’ knowledge, this is the first study that investigates the relationship between female directors and firm performance between Italy and Spain considering the cultural differences in term of “masculinity.”


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