scholarly journals Culture and profitability: empirical evidence at a European level

2016 ◽  
Vol 13 (2) ◽  
pp. 580-588
Author(s):  
Maria Manuela Martins ◽  
Ilídio Tomás Lopes

Organizational cultures distinguish different organizations within the same country or countries. When comparing the organizations within the same country differences in national cultures are not relevant but become relevant in comparison between different countries. This paper intends to evidence whether the profitability of companies can be influenced by the national culture. In order to characterize the culture of each country, we used the Hofstede measure of cultural dimensions (1. Power Distance (PDI); 2. Uncertainty Avoidance (UAI); 3. Individualism (IDV); 4. Masculinity (MAS); 5. Long-Term Orientation (LTO); and 6. Indulgence vs Restraint (IND)). Sample was based on the 500 largest European companies rated by the Financial Times 2015. Profitability was measured by the ratios Return on Assets (ROA) and Return on Equity (ROE). Statistical tests were performed to test whether the means of the variables used to measure profitability are statistically equal. The results indicate that companies with higher profitability are from countries with lower Power Distance, lower Uncertainty Avoidance, Long-Term Orientation, and Higher Indulgence

2016 ◽  
Vol 33 (S1) ◽  
pp. S503-S504 ◽  
Author(s):  
A. AlAnezi ◽  
B. Alansari

IntroductionHofstede's model of cultural dimensions has become the most widely accepted and most frequently cited model for cross-cultural research. His cultural dimensions included power distance index (PDI), individualism vs. collectivism (IDV), masculinity vs. femininity (MAS), uncertainty avoidance index (UAI), and long-term vs. short-term orientation (LTO).ObjectiveThe objective of this study is to explore gender related differences in the Hofstede's five dimensions of national culture for work-related values among a sample from Kuwait.MethodsThe participants were 540 first year secondary school Kuwaiti teachers (270 males: mean age = 28.95 ± 2.47; 270 females: mean age = 28.20 ± 2.04). The Arabic version of the Values Survey Module, VSM 08 was administered to participants. Data analysis include independent sample t-test was used to examine gender differences in Hofstede's five dimensions of national culture.ResultsInternal consistency was satisfactory for the Power Distance, Individualism vs. Collectivism, Masculinity vs. Femininity, Uncertainty Avoidance, and Long-term vs. Short-term Orientation subscales respectively (Cronbach's alpha = 0.82, 0.84, 0.90, 0.74, 0.87) for males and (Cronbach's alpha = 0.77, 0.90, 0.83, 0.80, 0.88) for females. The results revealed significant gender differences where the males obtained a higher score than females on individualism (t = 2.95, P < 0.002), and masculinity (t = 2.77, P < 0.005), while females obtained a higher score than males on power distance (t = 4.48, P < 0.000), and long-term orientation (t = 4.13, P < 0.000).ConclusionThese findings suggest that the gender differences exist for cultural dimensions, and provide insight on leadership characteristics.Disclosure of interestThe authors have not supplied their declaration of competing interest.


Author(s):  
Rochania Ayu Yunanda ◽  
Mohammad Ali Tareq ◽  
Akbariah Binti Mahdzir ◽  
Faried Kurnia Rahman

The purpose of this paper is to investigate the effects of predominant cultural values on banking disclosure. On one hand, Islamic banks have practiced Islamic principles which are universal for all countries. Islamic banks are expected to provide transparent information especially in terms of social and Shariah(Islamic) compliant information as Islamic banks claim themselves to have social objectives as the prime consideration. Islamic banks also have Shariah supervisory body to ensure that the banking activities and business operations are in line with Islamic requirements. On the other hand, Hofstede‘s cultural dimensions and Gray‘s hypotheses have rendered remarkable contributions in financial and accounting practices among different nations. Examining 45 Islamic banks in 11 Moslem majority countries, this paper focuses on four particular cultural dimensions namely individualism/collectivism, masculinity/femininity, uncertainty avoidance, and power distance and whether these dimensions have an impact on transparency. This study found that two out of four national cultures still have significant effect on the transparency level in Moslem majority countries.


2017 ◽  
Vol 18 (2) ◽  
pp. 1-31
Author(s):  
Andre Honoree ◽  
Mario Krenn

A limitation in the downsizing literature is its lack of attention on how firms’ institutional context interacts with firm’s internal drivers of employee downsizing. This study examines the firm performance - employee downsizing relationship in 1,747 firms across 35 countries over three years and demonstrates that while this relationship is similar among firms across countries, its magnitude varies across countries, and that the cultural dimensions of in-group collectivism, power distance, uncertainty avoidance help explain this variance. Implications from these findings and future directions for employee downsizing research and practice are discussed.


2018 ◽  
Vol 38 (10) ◽  
pp. 1937-1963 ◽  
Author(s):  
Camila Lee Park ◽  
Ely Laureano Paiva

PurposeThe purpose of this paper is to analyze the extent to which different patterns of cross-functional integration and the operations strategy (OS) process may be explained by national cultures differences.Design/methodology/approachPerceptual survey data from 105 manufacturing plants in four countries were used to validate the constructs and to test the hypotheses. The plants are located in two Western and two Eastern countries with different industrialization and development backgrounds (Brazil, China, Germany and South Korea). CFA validated the constructs, and ANOVA andt-tests evaluated the differences between levels of four Hofstede’s elements (i.e. power distance, individualism vs collectivism, uncertainty avoidance and long-term vs short-term orientation) on the OS process enablers (i.e. leadership for cross-functional integration and functional integration) and elements (i.e. manufacturing strategy linkage to corporate strategy and formulation of manufacturing strategy).FindingsResults suggest that different OS and OM processes are present in different national cultures. Leadership for cross-functional integration and manufacturing strategy linkage to corporate strategy differ between levels of power distance, individualism vs collectivism and uncertainty avoidance. Functional integration and formulation of manufacturing strategy also present differences according to the degree of individualism vs collectivism and long-term orientation.Originality/valueResults indicate that national culture is a key aspect for the OS process. Prior studies usually do not consider cultural aspects. Therefore, the OS process varies in different countries and contexts. Managers need to adjust their OS process when they are developing a global OS.


2017 ◽  
Vol 21 (01) ◽  
pp. 1730001 ◽  
Author(s):  
ALEXANDRE LUIS PRIM ◽  
LUIZ STEPHANY FILHO ◽  
GUILHERME AUGUSTO CAVALLARO ZAMUR ◽  
LUIZ CARLOS DI SERIO

The objective of this research is to analyse the relationship between cultural dimensions and the degree of innovation at the national level. For such, secondary data were collected relating to Hofstede’s cultural dimensions and the Global Innovation Index (GII). They were analysed using multiple linear technical regressions based on a sample of 72 countries. The results reveal the existence of three cultural dimensions associated with innovation outputs (technology and creativity): individualism, long-term orientation and indulgence, while a partially supported relationship was encountered for the power distance, uncertainty avoidance, and masculinity dimensions. National cultures were also classified as being competitive, planning, hierarchical or benevolent, to distinguish the most innovation-driven cultures. This evidence contributes to the innovation and competitiveness perspective, in which the intrinsic values of a national culture can favour the development of innovation and raise the competitiveness level of both nations and organisations.


2020 ◽  
Vol 3 ◽  
pp. 41-50
Author(s):  
Irma Gjana ◽  
Xhimi Hysa

The purpose of this paper is to highlight the changes that Albanian cultural dimensions’ scores have undergone over time. Hofstede’s Value Survey Module 2013 (VSM 2013) has been applied to examine the six dimensions of culture; power distance, individualism, masculinity, uncertainty avoidance, long term orientation and indulgence. The survey data (N=387) was collected in the two largest private hospitals in Albania. Globalization, technological developments, economical flourishing and crisis, war and peace, influence the shifting of national cultural dimensions’ scores toward negative or positive values [1]. In this study we aim to show the shifting of Albanian culture value scores in time, and compare the results with the ones predicted by the researchers of the field. The results obtained show a negative shift on Albanian culture dimension score of power distance, individualism, long term orientation and indulgence, and a positive shift on masculinity and uncertainty avoidance values. Implications for researchers of the field are discussed in the paper.


2020 ◽  
Author(s):  
Elham Alidadi Shamsabadi ◽  
Mitra Savabi-Esfahani ◽  
Ali Hashemianfar

Abstract Background Proper nutrition is essential for infant growth and health. Exclusive breastfeeding is the best pattern for feeding infants in the first 6 months of life. On the other hand, lactation patterns may be influenced by cultural factors. The present study aimed to determine relationships of cultural dimensions and lactation patterns.Methods The present cross-sectional study was conducted on 452 mothers with 6-month and younger infants. Hofstede's cultural dimensions, Power Distance, Individualism vs. collectivism, Masculinity vs. Femininity, Uncertainty Avoidance, Long-Term vs. Short-Term Orientation, and Indulgence vs. Restraint were assessed using a self-administered structured questionnaire. Data was analyzed using descriptive and analytical tests (independent t-test, Eta, phi and Cramer coefficients) and SPSS 18 at a significance level of less than 0.05.Results In the masculinity-femininity dimension, the mean score of exclusive breastfeeding pattern was higher than the non-exclusive breastfeeding (3± 0.48, 2.48±0.50) and there were statistical significant differences between groups (P = 0.03). However, despite different mean scores of power distance, individualism-collectivism, uncertainty avoidance, long term- short term orientation, indulgence- restraint in different breastfeeding patterns, the differences were not statistically significant.Conclusions Masculinity-femininity as a cultural dimension was associated with lactation patterns, so that mothers with greater orientation towards masculinity had higher focus on gender roles of a woman such as breastfeeding and they had greater exclusive breastfeeding. Therefore, some cultural dimensions should be taken into consideration in training and counseling for maternal breastfeeding.


Author(s):  
Syed Danish Haider Naqvi ◽  
Danish Ahmed Siddiqui

Culture influence the entrepreneurial intentions, which make a contribution to entrepreneurial evolution. This study investigates that whether (Hofstede, Dimensionalizing Cultures: The Hofstede Model in Context, 2001) cultural dimensions has a moderating role in converting Personal Entrepreneurial Attributes into their Intention to Start a Business. To measure these attributes, we applied bounded multidimensional model of social entrepreneurship as proposed by (Weerawardena & Mort, 2006) and applied by (Richter, et al., 2016). The effect of three Entrepreneurial Attributes namely risk taking, innovativeness and pro-activeness along with other demographic variables were tested against entrepreneurial intensions (EI). Their effect was moderated by five cultural dimensions namely Masculinity, Power Distance, Long-Term Orientation, Collectivism, and Uncertainty Avoidance. Data of 272 respondents from Pakistan was collected using close ended questionnaire and was analysed using Confirmatory factor analysis and structured equation modelling by means of path model which specifies various constructs of this study. The results suggested that risk taking and pro-activeness had a positive and significant effect on EI, whereas innovativeness doesn’t seem to effect EI. This imply that risk takers and proactive individuals are more inclined towards entrepreneurship than innovators. With regards to cultural dimensions, Masculinity, Power Distance, and Collectivism seems to negatively affect EI, whereas Long-Term Orientation, and Uncertainty Avoidance seems to effect positively. Interestingly, Collectivism and Masculinity have positive and significant complementarities with innovativeness, whereas Uncertainty Avoidance have negative and significant effect. This means innovativeness does seem to effect EI in collective and masculine culture. This also suggested that innovators would be more inclined in converting their ideas into workable projects in collective decision making and hierarchical cultural settings. Conversely, Uncertainty Avoidance, seem to restrict Entrepreneurial aspirations in innovators. Cultural variable doesn’t seem to have a significant moderation effect with regards to risk taking, except of Long Term Orientation, that have significant negative complementarities. Surprisingly, Masculinity, and Collectivism had and significant negative moderating effect with pro-activeness and EI, whereas Long Term Orientation and Uncertainty Avoidance have a significant positive interaction. This suggested that hierarchical culture deter proactive people in fulfilling their EI, at the same time, encourage innovators. With regards to demographics, male seems to have more EI, whereas the coefficient of education and age found that advanced education and experienced individuals believes in development, increasingly slanted toward entrepreneurship. Frames of mind to completing the expectations are poor in entrepreneurship.


Author(s):  
Isaac Kofi Mensah ◽  
Guohua Zeng ◽  
Chuanyong Luo

This study integrated the cultural dimensions such as power distance, collectivism, uncertainty avoidance, masculinity, and long-term orientation into the UTAUT to examine the comparative impact of cultural dimensions on the adoption of cross-border e-commerce between the Chinese and Russian citizens. The data analysis was conducted with SPSS and Smart PLS 3.0. The results indicate that power distance, collectivism, and long-term orientation respectively were significant predictors of performance expectancy and effort expectancy of cross-border e-commerce for both Chinese and Russian citizens. Uncertainty avoidance and masculinity were also found to determine the performance expectancy of cross-border e-commerce. However, while uncertainty avoidance and masculinity were significant determinants of the effort expectancy of cross-border e-commerce in the context of the Russia sample, it was not so for the Chinese sample. In addition, performance expectancy and social influence were positive predictors of the intention to use cross-border e-commerce for both Chinese and Russia samples.


2021 ◽  
pp. 104515952110373
Author(s):  
Corinne Brion

Teaching and learning are social and cultural activities. Across cultures, people have different ways of communicating, interacting, and learning. Consequently, learning may not occur without understanding the role national cultures play on organizing and facilitating training events. This study is part of a larger study that took place over a period of 6 years, from 2013 to 2019, in West Africa. Using Hofstede et al.’s Six Cultural Dimensions model as a conceptual framework, the researcher sought to examine the extent to which factors of national culture influence the facilitation of professional learning among school principals in two West African countries. Findings indicated that facilitators adapted to national culture in the dimensions of Power Distance, Uncertainty Avoidance, and Long-Term Orientation. This study is significant because teaching does not always equate to learning, and understanding the role of cultural factors can improve learning transfer. If facilitators and practitioners understood how national cultures influence teaching, they would adapt and adjust their practices to the national cultures they serve to improve learning outcomes. Based on the study findings, the researcher offers recommendations for those practitioners who work with adults in international contexts and/or who attend to learners from various cultural backgrounds.


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