Economic freedom and Hofstede’s cultural dimensions

2019 ◽  
Vol 23 (1) ◽  
pp. 65-84 ◽  
Author(s):  
Jason D. DeBode ◽  
Dana L. Haggard ◽  
K. Stephen Haggard
Keyword(s):  
Economic Freedom ◽  
Practical Implication ◽  
Cultural Dimensions ◽  
Cultural Dimension ◽  
Legal Origin ◽  
Content Type ◽  
Legal Origins ◽  
The Many ◽  
The Impact ◽  
Business Freedom

Purpose The purpose of this paper is to investigate the influence of broad cultural dimensions, as well as those of religion and legal origin, on countries’ economic freedom, i.e., trade freedom, investment freedom, business freedom, labor freedom, monetary freedom, as well as a composite measure of economic freedom. Design/methodology/approach Linear regression of publicly available data regarding economic freedom (Miller et al., 2018) on cultural dimensions (Hofstede, 2009), legal origin and religion (LaPorta et al., 1999) for 52 countries was performed to determine the impact of these factors on economic freedom. Findings Results indicated femininity was the cultural dimension associated with the most measures of economic freedom. Short-term-oriented cultures were predictive of greater business freedom, while more restrained cultures were associated with greater business and monetary freedoms. Higher individualism was predictive of greater monetary freedom. Catholicism positively predicted investment freedom and negatively predicted business freedom. French civil law negatively predicted labor freedom, while socialist legal origins positively predicted trade freedom, but negatively predicted business freedom. Originality/value This is the first study to examine the impacts of culture, law and religion on economic freedom. One practical implication of this research is that countries would be wise to emphasize more feminine aspects in their cultures, as these are associated with greater economic freedom. Even minor adjustments that move in the direction of cooperation and fair processes might help increase economic freedoms and the many benefits that stem from such freedoms.

The impact of law, religion, and culture on the ease of starting a business

2018 ◽  
Vol 21 (4) ◽  
pp. 242-257 ◽  
Author(s):  
Dana L. Haggard ◽  
K. Stephen Haggard
Keyword(s):  
Economic Development ◽  
Political Stability ◽  
Cultural Dimension ◽  
Legal Origin ◽  
Content Type ◽  
Dynamic Factors ◽  
New Business ◽  
The Cost ◽  
The Impact ◽  
Starting A Business

Purpose The purpose of this paper is to examine the effects of culture, legal origin and religion on four measures of the ease of starting a new business; the number of procedures required, the number days required, the ease of getting credit and the cost to start a business. Design/methodology/approach The authors use linear regression to test the hypotheses using publicly available data on legal origin and religion from La Porta et al. (1999), cultural dimension information from Hofstede (2009) and measures of the ease of starting a business from the World Bank’s (2017) Doing Business Initiative. The final sample consists of 71 countries for which information was available on all the variables of interest. Findings Legal origin affects the number of procedures and the length of time needed to start a business, as well as the ease of getting credit. Culture (power distance) and religion are important for explaining gender differences in the ease of starting a business. The cost of starting a business is unrelated to culture, legal origin or religion. Originality/value Economic development is an important determinant of a country’s political stability and standard of living. Although politicians play a significant role in how a friendly a country is toward business, the study demonstrates that other longer-term and less dynamic factors have a material influence on economic development.

Legal family, cultural dimensions, and FDI

2019 ◽  
Vol 15 (3) ◽  
pp. 285-314 ◽  
Author(s):  
Tanja Steigner ◽  
Marian K. Riedy ◽  
Antonina Bauman
Keyword(s):  
Fixed Effects ◽  
Cultural Distance ◽  
Common Law ◽  
Ordinary Least Squares ◽  
Cultural Dimensions ◽  
Source Country ◽  
Least Squares Regression ◽  
Legal Origin ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to investigate the interaction between legal origin and cultural distance and its impact on foreign direct investment (FDI) flows into the OECD. Design/methodology/approach Ordinary least squares regression analysis is used to evaluate FDI flows into OECD countries between 2003 and 2012. Estimations use fixed effects and clustered standard errors. Findings FDI flows from civil to common law countries are greater than vice versa. Further, cultural distance impacts FDI flows depending on the legal origin of the source country. Specifically, more FDI flows from civil and common law countries, when the host country has a higher (lower) power distance (individualism) score. Civil law countries send more FDI into countries with higher masculinity, uncertainty avoidance and indulgence scores and with lower long-term orientation scores. The opposite is the case with common law source countries. The findings remain robust for various changes to the sample selection. Research limitations/implications The concepts of cultural distance and legal origin have been criticized. However, neither concept has been rejected; rather, both concepts persist as robust empirical research tools. Practical implications Scholars, managers and investors can gauge the impact of cultural distance on FDI flows based on the legal family of the source country. Further, policy makers might want to consider rebranding their countries in terms of cultural perceptions to show the attractiveness of specific cultural dimensions to foreign companies and investors. Originality/value To the best of the authors’ knowledge, this is the first paper that jointly investigates FDI, legal origin and national culture.

The impact of cultural dimensions on customer complaint behaviours: an exploratory study in Antalya/Manavgat tourism region

2018 ◽  
Vol 12 (1) ◽  
pp. 59-79 ◽  
Author(s):  
Gözde Seval Ergün ◽  
Olgun Kitapci
Keyword(s):  
Structural Equation ◽  
Cultural Dimensions ◽  
Future Research ◽  
Sample Population ◽  
Cultural Dimension ◽  
Hotel Management ◽  
Content Type ◽  
Public Action ◽  
Customer Complaint ◽  
The Impact

Purpose The study was carried out to better understand the behaviour of tourists from different cultures and backgrounds, and to provide strategic solutions for tourism managers. The purpose of this study was to determine the relationships between the cultural dimensions of Hofstede and customer complaint behaviours. Design/methodology/approach Exploratory factor analyses were carried out separately for national culture and complaint behaviour scales and the factor structuring was then tested using a confirmatory factor analysis. Structural equation modelling (SEM) was used to test theoretical correlations and a conceptual model was created to put forward the correlations between national cultural dimensions and complaint behaviours, as well as to examine the impact of variation in one dimension on the other. Findings Significant correlations were observed between power distance and both public action and no action behaviours, uncertainty avoidance and public action and private action, as well as individualism/collectivism and public action. Research limitations/implications The sample population of the study included foreign tourists visiting Manavgat district in 2015. Manavgat as a destination is preferred by foreign tourists, rather than domestic tourists. In addition, many accommodations in the region only host guests from particular nationalities. For this reason, domestic tourists were not included in the survey. A limitation of the research is the fact that it focused only on hotel management. Extending the scope of the study in future research—the study could be carried out for a wider area and include other sectors—would increase the effectiveness of the study. Practical implications The results shed light on the fact that customers perform different complaint behaviours depending on variation in national cultural dimensions. In this context, the findings contribute to the hotel management literature and to the development of management strategies such as staff training, effective complaint solution methods, increasing customer complaints, using indirect resources effectively and decreasing the cost of solutions. The research also aims to create awareness in hotel managers by highlighting the importance of this issue. Originality/value In many of the studies where customer complaint behaviour and culture are analysed together, culture is regarded primarily as a geographical region, or as ethnical origin. Using Hofstede’s national cultural dimension scale, and taking into consideration all the national cultural dimensions, adds originality to this research. This study is one of the first to explore the impact of cultural dimensions on customer complaint behaviours in Turkey. This is also one of the first studies on complaint behaviour in the hotel industry.

Impact of cultural positions on FDI’s entry mode

2015 ◽  
Vol 22 (3) ◽  
pp. 509-526 ◽  
Author(s):  
Cristina López-Duarte ◽  
Marta M. Vidal-Suárez ◽  
Belén González-Díaz
Keyword(s):  
Qualitative Comparative Analysis ◽  
Entry Mode ◽  
Cultural Dimensions ◽  
Cultural Dimension ◽  
The European Union ◽  
Contextual Variables ◽  
Data Set ◽  
Content Type ◽  
Second Development ◽  
The Impact

Purpose – The purpose of this paper is to study the influence of cultural positions on the choice of entry mode in foreign direct investment (FDI) – joint ventures vs wholly owned subsidiaries. The paper focusses on the impact of cultural positions along four cultural dimensions, as well as on the interactions between these positions and FDI’s contextual variables (i.e. linguistic differences). Design/methodology/approach – A fuzzy set qualitative comparative analysis is performed on a data set of Spanish investments located in the European Union. Findings – Existence of interaction effects among cultural positions along different dimensions, as well as between cultural positions and FDI’s contextual variables. Research limitations/implications – Main limitations relate to the data set, as only FDIS carried out by big corporations and coming from a single country are considered. Practical implications – Managers making decisions on the choice of entry mode must take into account the position relative to each individual cultural dimension, as well as its interaction with other cultural dimensions and FDI’s contextual variables, rather than just considering cultural distances (CDs) between countries. Originality/value – First, focus on cultural positions (rather than CDs). It allows taking into account both the cultural characteristics of each party and their relative values along individual cultural dimensions. Second, development of a qualitative analysis that considers the contextual features of the investment.

The moderating role of cultural factors in the adoption of mobile banking in Brazil

2019 ◽  
Vol 11 (1) ◽  
pp. 63-81 ◽  
Author(s):  
Alexandre da C. Goularte ◽  
Silvia Novaes Zilber
Keyword(s):  
Theoretical Model ◽  
Behavioral Intention ◽  
Cultural Dimensions ◽  
Mobile Banking ◽  
Content Type ◽  
Five Dimensions ◽  
Cultural Variables ◽  
Use Of Technology ◽  
Country Culture ◽  
The Impact

Purpose This study aims to evaluate the impact of country culture, represented by Hofstede cultural dimensions, in the adoption of Brazilian mobile banking services. Design/methodology/approach Based on the replication of a theoretical model previously tested in Mozambique (Africa) that combines the extended version of the unified theory of acceptance and use of technology (UTAUT2) with the five Hofstede cultural dimensions, this study tested that model in another emerging country, Brazil, using partial least squares (PLS) as a modeling method. Findings Replication showed that the cultural dimensions do not present strong significance in the moderation of the use of mobile banking. In fact, out of the five dimensions tested, three were not significant and two showed weak significance (p < 0.10): collectivism and short-term orientation. Those results, contrasting with that one presented by Baptista and Oliveira (2015), made sense under Ajzen’s theory (1991) – the TPB, leading to the conclusion that the moderation of cultural dimensions on behavior use is not applicable. Originality/value The authors concluded that the tested model may not be adherent, finding a theoretical gap to be explored in future studies: the moderation of the behavioral intention by cultural variables proposed by Hofstede. That finding supported the proposition of a new theoretical model, which considers the moderation of cultural dimensions in another place: behavioral intention to use mobile banking instead of the behavior use, as proposed by Baptista and Oliveira (2015). So, based on the research results and based on some authors cited in this study (Choi et al., 2014; Chou, 2013; Srite and Karahanna, 2006), it is proposed to insert Hofstede cultural variables as moderators of independent variables on the behavioral intention.

scholarly journals The effect of national cultural differences of board members on integrated reporting

2018 ◽  
Vol 14 (1) ◽  
pp. 7-21 ◽  
Author(s):  
Simona Alfiero ◽  
Massimo Cane ◽  
Ruggiero Doronzo ◽  
Alfredo Esposito
Keyword(s):  
Cultural Differences ◽  
Critical Mass ◽  
Cultural Dimensions ◽  
Board Members ◽  
Cultural Dimension ◽  
Integrated Reporting ◽  
Independent Variables ◽  
The Impact ◽  
The Relationship ◽  
Positive Effect

This research, based on stakeholder theory and the national cultural dimensions, aims to test the influence of foreigners on board and its size on Integrated Reporting (IR) practices. The analysis is based on a sample of 1,058 European companies from 18 different countries, who adopted or not the IR for the year 2015, and it relies on a Logit. The dependent variable is a dummy (presenting or not the IR) and the independent variables are represented by the board characteristics (foreigners and size). The impact of the critical mass on the presence of foreigners and the cultural dimension on the basis of directors’ nationality was tested relying on the masculinity/femininity dimension of Hofstede. Besides, the directors’ country of origin was considered, namely if they belong to the major European countries presenting a wider IR diffusion. The relationship between foreigners on board and IR is found to be negative. This means that companies with at least one foreigner are less inclined to adopt IR. The results show that the boards with more of three foreign administrators have a major propensity to adopt the IR. The membership of the directors in countries with a feminist culture also has a positive effect.

Entrepreneurial intentions and perceived barriers to entrepreneurship among youth in Uttarakhand state of India

2018 ◽  
Vol 10 (4) ◽  
pp. 243-269 ◽  
Author(s):  
Lalit Sharma
Keyword(s):  
Interactive Effect ◽  
Cultural Dimensions ◽  
Perceived Barriers ◽  
Entrepreneurial Intentions ◽  
Primary Data ◽  
Cultural Perspective ◽  
Validity And Reliability ◽  
Content Type ◽  
Regional Cultures ◽  
The Impact

Purpose The purpose of this paper is to investigate the role of gender and regional cultures on entrepreneurial intentions and perceived barriers to entrepreneurship in two diverse regions of a state. Authors in the past have consistently expressed the need for studies on entrepreneurial intentions that would encompass both the gender and cultural dimensions, as there is a potential interactive effect between sex and culture, which remains largely unstudied despite its potential to provide an explanation for the contradictory findings that have emerged when either sex or culture was studied separately. Design/methodology/approach This is a quantitative study. The primary data were derived from the students of professional courses. The sampling method used was proportionate stratified sampling. The scales used were tested with regard to validity and reliability. The chi-square test, Fisher’s exact test and Mann–Whitney U test were used to draw relationships between the variables. Findings The findings indicated significant gender differences in perceptions of barriers and entrepreneurial intentions among youth. The findings also showed that the barrier perceptions and the entrepreneurial intentions between genders vary with change in culture at the regional level. Originality/value This paper adds to the very limited research available on perceived barriers and entrepreneurial intentions that focuses on the effect of gender from a cross-cultural perspective. This paper further contributes by testing the results in two culturally diverse regions of a single state of India, which has helped us understand the impact of regional cultures while controlling for the effects of the entrepreneurship support systems provided by the governments in different nations.

Impact of corruption on Chinese investment in African countries

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shilin Yuan ◽  
Haiyang Chen ◽  
Wei Zhang
Keyword(s):  
Developing Countries ◽  
Developing Country ◽  
Host Country ◽  
Practical Implication ◽  
Host Countries ◽  
African Countries ◽  
Control Variables ◽  
Content Type ◽  
The Impact ◽  
New Evidence

Purpose This paper aims to examine the impact of host country corruption on foreign direct investment (FDI) from China to developing countries in Africa. With the opposing arguments that corruption is detrimental to or instrumental in FDI and mixed empirical evidence, this paper contributes to the literature by providing new evidence on the issue. Additionally, little research has been done on the impact of corruption on FDI made by developing country multinationals to developing countries. This paper fills a void in this area. Design/methodology/approach Based on the published literature, as well as China and Africa contexts, the authors develop hypotheses that host countries with low corruption receive more FDI and resource-seeking investments weaken the relationship. The annual stock of Chinese FDI in 35 African countries, host country corruption data and other control variables from 2007 to 2015 are collected. Feasible generalized least squares models are used to test the hypotheses. Additional robustness tests are also conducted. Findings The findings support the hypotheses. Specifically, Chinese investors make more investments in host countries with low corruption except for resource-seeking investments in resource-rich host counties. The results are statistically significant accounting for various control variables. The results of the robustness tests show that the main findings are robust. Originality/value First, this study provides new evidence on the impact of corruption on FDI. Second, this study also fills a void by examining FDI from a developing country, China to other developing countries in Africa. Finally, this study also has a practical implication for Chinese multinationals investing in Africa.

Board composition and value relevance of Ghanaian firms: a seemingly unrelated regression approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ebenezer Agyemang Badu ◽  
Ebenezer Nyarko Assabil
Keyword(s):  
Best Practices ◽  
Firm Value ◽  
Value Relevance ◽  
Practical Implication ◽  
Seemingly Unrelated Regression ◽  
Board Composition ◽  
Content Type ◽  
Listed Firms ◽  
Unrelated Regression ◽  
The Impact

PurposeThe purpose of this study is to examine the connection between board composition and value relevance of financial information in Ghana.Design/methodology/approachThe study uses a panel data of 144 firm-year observations of listed firms in Ghana.FindingsThe study finds that a higher fraction of independent directors is associated with lower firm value. The study further finds that board size is positively related to firm value, whereas duality is negatively associated with firm value.Practical implicationsThe practical implication of this paper is that investors and regulators should be mindful that specifying governance composition should not only be based on “so-called” codes of best practices but also the level of the country's or the sector's development and local institutional structures.Originality/valueThis study uses five different measurements of market share and considers the impact of the provision of the Code of Best Practices in Ghana.

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

2019 ◽  
Vol 26 (4) ◽  
pp. 546-566
Author(s):  
Raquel Orcos ◽  
Sergio Palomas
Keyword(s):  
Environmental Management ◽  
National Culture ◽  
Cultural Dimensions ◽  
Iso 14001 ◽  
Content Type ◽  
Performance Orientation ◽  
Management Standards ◽  
The World ◽  
The Impact ◽  
Over Time

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.

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