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

2020 ◽  
Vol 58 (8) ◽  
pp. 1563-1583 ◽  
Author(s):  
Michele Rubino ◽  
Filippo Vitolla ◽  
Nicola Raimo ◽  
Isabel-Maria Garcia-Sanchez
Keyword(s):  
National Culture ◽  
Significant Relationship ◽  
Cultural Dimensions ◽  
Least Square ◽  
Future Research ◽  
The European Union ◽  
Content Type ◽  
Country Level ◽  
Managerial Implications ◽  
The Impact

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.

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.

Understanding the internal audit function in a digitalised business environment

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nathanaël Betti ◽  
Gerrit Sarens
Keyword(s):  
Data Analytics ◽  
New Technologies ◽  
Internal Audit ◽  
Business Environment ◽  
Future Research ◽  
The European Union ◽  
Content Type ◽  
Internal Auditors ◽  
Internal Audit Function ◽  
The Impact

Purpose This paper aims to gain an in-depth understanding of how the internal audit function evolves in an increasingly digitalised business environment. Design/methodology/approach This paper is based on 29 semi-structured interviews with members of management committees and internal auditors based in Belgium. Findings The analysis reveals that a digitalised business environment affects the internal audit function in three respects. First, it impacts its scope. The agility of the internal audit planning and the required digital knowledge are expected to increase and information technology (IT) risks gain importance, especially cybersecurity threats. Second, the demand for consulting activities performed by internal auditors is higher and third, digitalisation modifies the working practices of internal auditors in their day-to-day tasks. New technologies such as data analytics tools are being implemented progressively in internal audit departments and digital skills are considered a critical asset. Research limitations/implications This research was conducted in the European Union and gathers opinions of members of management committees and internal auditors. Future research could focus on other internal auditing stakeholders in other legal contexts. Practical implications The internal audit function needs to integrate IT and data analytics skills. In addition, the internal audit function should develop consulting activities to help organisations deal with the digitalisation of the business environment. Originality/value The impact of digitalisation on the internal audit function and its effect on internal audit practices is an underexplored area.

The impact of the motivation for status on consumers’ perceptions of retailer sustainability: the moderating impact of collectivism and materialism

2017 ◽  
Vol 34 (4) ◽  
pp. 292-305 ◽  
Author(s):  
Mertcan Tascioglu ◽  
Jacqueline Kilsheimer Eastman ◽  
Rajesh Iyer
Keyword(s):  
Environmental Sustainability ◽  
Generational Differences ◽  
Age Groups ◽  
Social Sustainability ◽  
Cultural Dimensions ◽  
Future Research ◽  
Bandwagon Effect ◽  
Content Type ◽  
The Impact ◽  
The Relationship

Purpose The purpose of the study is to investigate consumers’ perceptions of status motivations on retailers’ sustainability efforts and whether collectivism and materialism moderate this relationship. Design/methodology/approach A quantitative research methodology using survey data was used. Data were collected by administering questionnaires from millennial respondents (n = 386) from the USA and Turkey. Findings The results show that cultural value (collectivism) and materialism can serve as moderators of the effects of status motivation and sustainability. The findings indicate that the link between status motivation and sustainability perceptions (both environmental and social sustainability) is stronger for more collectivist consumers. In terms of materialism, while it did not moderate the relationship between status motivation and perceptions of environmental sustainability, it did moderate the relationship between status motivation and perceptions of social sustainability, particularly the uniqueness aspect of materialism. Research limitations/implications The stronger link between status motivation and both environmental and social sustainability for collectivists suggests that the bandwagon effect may be impacting their need for status. The stronger link between status motivation and social sustainability for those more materialistic suggests that their need for status may be more impacted by a snob effect as they want to appear unique. The use of college students is a limitation of this study, and future research needs to explore a wider range of age groups to determine if there are generational differences. Additionally, future research could examine other cultural dimensions such as power distance and masculinity versus femininity. Practical implications Findings from this research provide insights for retailers, especially those targeting the status and luxury market when developing their sustainability plans. An interest in sustainability may aid consumers in meeting their need for status, particularly for those status consumers who are more collectivist, as a means to fit in with their group. For more materialistic consumers, retailers may want to focus more on unique social sustainability efforts that are more publicly noticeable. Social implications Social sustainability, a topic not studied as frequently as environmental sustainability, has significant implications for consumers. The findings suggest that the link between status motivation and social sustainability is stronger for collectivists, suggesting a bandwagon effect. Additionally, the authors find that the link between status motivation and social sustainability is stronger for materialists, particularly the uniqueness dimension of materialism, suggesting a snob effect. Originality/value The originality of this study lies in the exploration of how status motivation impacts consumers’ perceptions of retailers’ environmental and social sustainability efforts and if these relationships are moderated by collectivism and materialism. Few studies have examined social sustainability, especially in terms of culture.

scholarly journals Does culture impact private label performance?

2018 ◽  
Vol 35 (1) ◽  
pp. 93-112 ◽  
Author(s):  
Tribikram Budhathoki ◽  
Julien Schmitt ◽  
Nina Michaelidou
Keyword(s):  
National Culture ◽  
Structural Equation ◽  
Secondary Data ◽  
Cultural Dimensions ◽  
Private Label ◽  
Retail Market ◽  
Content Type ◽  
Five Dimensions ◽  
Market Factors ◽  
The Impact

Purpose To better understand the disparity of private label performance across countries, the purpose of this paper is to investigate the role played by national culture. Two types of impact are considered: a direct influence of cultural dimensions on the performance of private labels in a country and an indirect one where national culture favours the development of modern retailers, which, in turn, benefits private label performance. Design/methodology/approach Using the five dimensions of the Hofstede model to describe national culture, this paper performs a structural equation modelling incremental building model approach using secondary data collected from a sample of 65 countries. Findings The results show that individualism (positively) and long-term orientation (negatively) directly impact private label performance. Moreover, four dimensions (individualism, masculinity, power distance and uncertainty avoidance) are shown to have a significant indirect impact on private label performance via the mediation of retail market development, positively for individualism and negatively for the three other dimensions. Practical implications The findings provide retailers with important insights into the critical decisions of the selection of new markets and adaptation of the private label strategy according to the culture of the country. Originality/value This research pioneers by being the first to determine the impact of all the dimensions of the Hofstede cultural model on private label performance, use a very large number of countries to test this impact and study the role of important retail market factors in this phenomenon.

Influence of national culture on knowledge management process: literature review and research agenda

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anil Kumar Goswami ◽  
Rakesh Kumar Agrawal ◽  
Meghna Goswami
Keyword(s):  
Knowledge Management ◽  
Literature Review ◽  
National Culture ◽  
Research Agenda ◽  
Future Research ◽  
Content Type ◽  
Organizational Interventions ◽  
Effective Manner ◽  
Working Together ◽  
The Impact

PurposeThe purpose of this study is to explore, understand and investigate the relationship between national culture and knowledge management (KM) process.Design/methodology/approachThis study is based on systematically and objectively capturing the contents of extant research papers published by researchers in this area by using the literature review methodology.FindingsThe study demonstrates significant relationship between national culture and KM process. Further, it also provides directions for future research.Practical implicationsThe study will help top management to understand and appreciate the impact of national culture on KM process in organization, where people from different nations are working together. The management may apply appropriate organizational interventions to manage people of different national cultures in effective manner and effective utilization of knowledge of the organization through KM process. This paper will be considered as a quick reference and resource for anyone interested in this area.Originality/valueThis study is a comprehensive literature review of influence of national culture on KM process. Further, it also sets the research agenda for future researchers.

Understanding IFRS adoption

2019 ◽  
Vol 20 (4) ◽  
pp. 543-570 ◽  
Author(s):  
Olfa Riahi ◽  
Walid Khoufi
Keyword(s):  
Logistic Regression ◽  
Least Square ◽  
Future Research ◽  
Behavioral Factors ◽  
Content Type ◽  
Ordinary Least Square ◽  
Ifrs Adoption ◽  
Starting Point ◽  
Behavioral Attribute ◽  
The Impact

Purpose The purpose of this paper is to discern the impact of main behavioral factors that could affect the decision of adopting IFRS in developing countries (DCs). In other words, this work looks to identify the different variables that are likely to influence the adoption of IFRS in these countries. Design/methodology/approach The methodological orientation of this research is to highlight and analyze the correlation between the cited factors and the IFRS adoption in DCs. Tested models are functions of logistic regression. To assess the parameters of these functions, the commonly used method is not that of ordinary least square but the maximum likelihood technique. In short, this study followed a hypothetical-deductive methodology by referring to the application of a logistic regression for each of the variables presumed to be analyzed. The authors implement this empirical model by using the neo-institutional approach and basing on a sample of 108 DCs. Findings The empirical results show that there exists a bidirectional causal relationship between the majority of the developed behavioral variables and the decision of whether adopting or unadopting IFRS by DCs. They also indicate through multivariate analysis that the selection of IFRS by DCs is primarily legitimized by institutional and social pressures (institutional isomorphism). Research limitations/implications It is essential to indicate that some limits might be assigned to the study. They are attached principally to the use of a dichotomous dependent variable which presents a restriction in a sense where the robust inequality at the level of the numbers of the countries of sub-samples can relatively weaken the findings. There are also few studies that jointly analyze the behavioral dimensions within a country and the adoption of IFRS. Institutional theory emanated from the research has proved useful in escaping this limit. Practical implications These empirical insights are of particular interest to local accounting standard setters of the selected countries since they can provide a better discernment of factors that can encourage the adoption of IFRS. Indeed, the research can be a reference for governments to better identify the economic, political and institutional obstacles that have an impact on behaviors which could compel countries to flee the adoption of IFRS. This paper will also be helpful for future research studying the links between human behavior and accounting in a general way. It should be noted that the results will be significant for future studies looking for real behavioral factors that drive a country to adopt an accounting framework. The studies will be able to use the empirical variables as a starting point and then they can extract new measures to identify the impact of behavior on decisions to adopt any standards. Originality/value At the present study, the authors strive to provide input to the literature by focusing on the determinants of the choice of an accounting practice in a DC reverberating to a new dimension which is the behavioral attribute.

IPO initial return in Pakistan: influence of country-level institutional quality

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Waqas Mehmood ◽  
Rasidah Mohd-Rashid ◽  
Abd Halim Ahmad ◽  
Ahmad Hakimi Tajuddin
Keyword(s):  
Stock Exchange ◽  
Significant Risk ◽  
Institutional Quality ◽  
Political Stability ◽  
Least Square ◽  
Cross Sectional ◽  
Content Type ◽  
Country Level ◽  
Initial Return ◽  
The Impact

PurposeThe present study investigated the influence of country-level institutional quality on IPO initial return using World Bank Governance indices.Design/methodology/approachThis study analysed 84 IPOs listed on Pakistan Stock Exchange between 2000 and 2017 using cross-sectional data. The impact of country-level institutional quality on IPO initial returns was examined using ordinary least square, robust least square, stepwise least square and quantile regression.FindingsEmpirically, the values of political stability, government effectiveness and regulatory quality were positively significant, whereas rule of law and control of corruption were negatively significant in explaining the intensity of IPO initial return. The results also show the presence of significant risk in the market. Hence, investors were compensated with higher initial returns for weak country-level institutional quality. The results also reveal that improving country-level institutional quality would improve the financial market transparency, thereby reducing IPO initial returns.Originality/valueNo studies have been conducted regarding the influence of country-level institutional quality on IPO initial return in Pakistan. This study is a pioneering study that seeks to give insights into the link between these variables in the context of Pakistan.

scholarly journals Board structure and corporate R&D intensity: evidence from Forbes global 2000

2020 ◽  
Vol 28 (3) ◽  
pp. 445-463 ◽  
Author(s):  
Aws AlHares ◽  
Ahmed A. Elamer ◽  
Ibrahem Alshbili ◽  
Maha W. Moustafa
Keyword(s):  
Risk Taking ◽  
National Level ◽  
Oecd Countries ◽  
Least Square ◽  
Future Research ◽  
Board Structure ◽  
Accounting Systems ◽  
Content Type ◽  
Anglo American ◽  
The Impact

Purpose This study aims to examine the impact of board structure on risk-taking measured by research and development (R&D) intensity in OECD countries. Design/methodology/approach The study uses a panel data of 200 companies on Forbes global 2000 over the 2010-2014 period. It uses the ordinary least square multiple regression analysis techniques to examine the hypotheses. Findings The results show that the frequency of board meetings and board size are significantly and negatively related to risk-taking measured by R&D intensity, with a greater significance among Anglo-American countries than among Continental European countries. The rationale for this is that the legal and accounting systems in the Anglo American countries have greater protection through greater emphasis on compliance and disclosure, and therefore, allowing for less risk-taking. Research limitations/implications Future research could investigate risk-taking using different arrangements, conducting face-to-face meetings with the firm’s directors and shareholders. Practical implications The results suggest that better-governed firms at the firm- or national-level have a high expectancy of less risk-taking. These results offer regulators a resilient incentive to pursue corporate governance (CG) and disclosure reforms officially and mutually with national-level governance. Thus, these results show the monitoring and legitimacy benefits of governance, resulting in less risk-taking. Finally, the findings offer investors the opportunity to build specific expectations about risk-taking behaviour in terms of R&D intensity in OECD countries. Originality/value This study extends and contributes to the extant CG literature, by offering new evidence on the effect of board structure on risk-taking. The findings will help policymakers in different countries in estimating the sufficiency of the available CG reforms to prevent management mishandle and disgrace.

Agency or stewardship?

2018 ◽  
Vol 30 (3) ◽  
pp. 1352-1373 ◽  
Author(s):  
Danny Woosik Choi ◽  
Hyun Kyung Chatfield ◽  
Robert Evans Chatfield
Keyword(s):  
Capital Structure ◽  
Least Square ◽  
Lodging Industry ◽  
Future Research ◽  
Content Type ◽  
Financing Decisions ◽  
Bivariate Correlation ◽  
Leadership Structure ◽  
Managerial Implications ◽  
The Capital Structure

Purpose This study aims to empirically investigate agency and stewardship theories in the US lodging market by examining the influence of fiscal and non-fiscal leadership structures on the debt financing decisions of lodging firms. Design/methodology/approach Secondary financial data have been collected for USA-based lodging firms. Subsequently, bivariate correlation, pooled ordinary least square) and endogeneity analyses have been performed on the data. Findings The findings support the significant influence of some corporate governance attributes on the capital structure of US lodging firms and show the limited applicability of agency and stewardship theories. Practical implications Theoretical and managerial implications are suggested in terms of balancing leadership structure attributes from the agency and stewardship theories, the capital structure of lodging firms and the future research. Originality/value Despite its importance considering the intensive capital and relatively high liabilities needed for success in the lodging industry, the influence of leadership structure on capital structure has not been examined either empirically or theoretically. Leadership structure attributes, both fiscal and non-fiscal, are included in the study to gain a richer understanding of their influence. The outcomes of the analysis suggest managerial implications for leadership structure as well as theoretical generalizability for agency and stewardship theories within the lodging industry.

Country-level sustainability and cross-border banking flows

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sureyya Burcu Avci ◽  
Gözde Sungu-Esen
Keyword(s):  
Banking Sector ◽  
Generalized Method Of Moments ◽  
Developed Countries ◽  
Least Square ◽  
Real Sector ◽  
Content Type ◽  
The Real ◽  
Cross Border ◽  
Country Level ◽  
The Impact

Purpose This paper aims to investigate the association between country-level sustainability scores and cross-border bank-to-non-bank flows within countries. Design/methodology/approach The authors analyze cross-border banking flows into the real sector firms of 26 developed countries from 2006 to 2017. The authors use a dynamic panel ordinary least square along with an instrumental variable and a generalized method of moments regressions to test the relationship between country-level sustainability scores and cross-border banking flows. Additionally, the authors apply Fama-MacBeth cross-sectional regression and non-parametric portfolio tests to obtain robust results. Findings The impact of country-level sustainability scores on cross-border banking flows is positive and significant. This finding is consistent with the signaling theory, which states that a country’s sustainability score is a signal to attract more international fund flows. Notably, the authors deduce that environmental sustainability is more important than the social and governance pillars. Practical implications The findings indicate that the real sector firms located in countries having higher sustainability scores can receive more international bank flows. Consequently, policymakers should focus more on country-level sustainability investments to improve the financing of resident firms. Social implications Policymakers should focus more on country-level sustainability investments to improve the financing of resident firms. Originality/value To the best of the authors’ knowledge, no existing study has investigated the signaling function of country-level sustainability scores in the cross-border banking flow conjecture. By investigating this relationship for real sector firms, this study portrays how the non-banking sector can benefit from such a policy that promotes sustainable practices at the country level.

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