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A framework to update Hofstede's cultural value indices: economic dynamics and institutional stability

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Abstract

This study offers an update of the Hofstede cultural value dimensions. We argue that changes in economic conditions are the source of cultural dynamics, while the endurance of institutional characteristics provides the foundation for cultural stability. It is found that national wealth, measured by GDP per capita, has a curvilinear relationship with individualism, long-term orientation, and power distance scores. Relatively speaking, uncertainty avoidance and masculinity mainly reflect some rather stable institutional traditions, such as language, religion, climate, ethnic homogeneity, and legal origin, and are less likely to change over time.

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Acknowledgements

We want to thank Mark Peterson, Geert Hofstede, two anonymous referees, and participants of the 2005 JIBS paper development workshop for extremely helpful comments and suggestions.

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Authors and Affiliations

  1. Department of Economics, Finance, and International Business, School of Business, The College of New Jersey, Ewing, NJ, USA

    Linghui Tang

  2. Department of Finance, Whitman School of Business, Syracuse University, Syracuse, USA

    Peter E Koveos

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  1. Linghui Tang
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  2. Peter E Koveos
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Correspondence to Linghui Tang.

Additional information

Accepted by Mark F Peterson, Departmental Editor, 10 January 2008. This paper has been with the authors for four revisions.

APPENDIX

APPENDIX

See Table A1.

Table a1 Hofstede's and our Updated Cultural Indices
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Tang, L., Koveos, P. A framework to update Hofstede's cultural value indices: economic dynamics and institutional stability. J Int Bus Stud 39, 1045–1063 (2008). https://doi.org/10.1057/palgrave.jibs.8400399

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