Top

Eurasian Business Review

Published in:

22-07-2020 | Regular Article

Hofstede’s cultural dimensions and R&D intensity as an innovation strategy: a view from different institutional contexts

Authors: Isabel Gallego-Álvarez, María Consuelo Pucheta-Martínez

Published in: Eurasian Business Review | Issue 2/2021

Activate our intelligent search to find suitable subject content or patents.

search-config

AI-assisted search

Off

Abstract

The impact of all six of Hofstede’s cultural dimensions (power distance, individualism/collectivism, masculinity/femininity, uncertainty avoidance, long-term/short-term orientation, and restraint/indulgence) on business innovation practice has not, to the best of our knowledge, been hitherto examined. Past research has focused on four or five of these cultural dimensions. The aim of this study is therefore to analyze how corporate innovation policies are affected by all these dimensions in a sample of firms operating in different countries. The paper draws on institutional theory, whereby firms domiciled in the same institutional context will behave in a similar manner and their decisions on innovation practices will therefore also be similar. The findings show that the cultural dimensions of power distance, masculinity, uncertainty avoidance, and long-term orientation are positively associated with innovation, while individualism has a negative effect, and indulgence has no effect whatsoever.

next article Business environment reforms, innovation and firm productivity in transition economies

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

The cultural insights website of Geert Hofstede can be accessed at: https://www.geert-hofstede.com/.

Allred, B. B., & Swan, K. S. (2004). Global versus multidomestic: Culture’s consequences on innovation. Management International Review, 44, 81–105.

Ambos, B., & Schlegelmilch, B. B. (2008). Innovation in multinational firms: Does cultural fit enhance performance? Management International Review, 48, 189–206.

Archambeault, D., & DeZoort, F. T. (2001). Auditor opinion shopping and the audit committee: An analysis of suspicious auditor switches. International Journal of Auditing, 5, 33–52.

Archibugi, D., & Planta, M. (1996). Measuring technological change through patents and innovation surveys. Technovation, 16, 451–519.

Arellano, M., & Bond, S. (1991). Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. Review of Economic Studies, 58, 277–297.

Azar, G., & Drogendijk, R. (2016). Cultural distance, innovation and export performance. European Business Review, 28, 176–207.

Balsmeier, B., Fleming, L., & Manso, G. (2017). Independent boards and innovation. Journal of Financial Economics, 123, 536–557.

Baregheh, A., Rowley, J., & Sambrook, S. (2009). Towards a multidisciplinary definition of innovation. Management Decision, 47, 1323–1339.

Baskerville, R. F. (2003). Hofstede never studied culture. Accounting, Organizations and Society, 28, 1–14.

Bradley, F., Gao, Y., & Sousa, C. (2013). A natural science approach to investigate cross-cultural managerial creativity. International Business Review, 22, 839–855.

Brem, A., Maier, M., & Wimschneider, C. (2016). Competitive advantage through innovation: The case of Nespresso. European Journal of Innovation Management, 19, 133–148.

Budde-Sung, A. (2013). The invisible meets the intangible: Culture’s impact on intellectual property protection. Journal of Business Ethics, 117, 345–359.

Chaiporn, V., & Olimpia, C. R. (2016). Short- and long-run effects of internationalization and R&Dintensity on firm performance. Journal of Multinational Financial Management, 34, 28–45.

Chen, J., Sun, P., & McQueen, R. (2010). The impact of national cultures on structured knowledge transfer. Journal of Knowledge Management, 14, 228–242.

Chen, Y., Podolski, E. J., & Veeraraghavan, M. (2017). National culture and corporate innovation. Pacific-Basin Finance Journal, 43, 173–187.

Chouaibi, J., Boujelbene, Y., & Affes, H. (2009). Characteristics of the board of directors and involvement in innovation activities: A cognitive perspective. Corporate Board: Role, Duties and Composition, 5, 34–44.

Conner, K. R. (1991). A historical comparison of resource-based theory and five schools of thought within industrial organization economics: Do we have a new theory of the firm? Journal of Management, 17, 121–154.

Davenport, T. H., & Prusak, L. (2000). Working knowledge—How organizations manage what they know. Boston: Harvard Business School Press.

De Mooij, M., & Hofstede, G. (2010). The Hofstede model: Applications to global branding and advertising strategy and research. International Journal of Advertising, 29, 85–110.

Dedahanov, A., Lee, D., Rhee, J., & Yoon, J. (2016). Entrepreneur’s paternalistic leadership style and creativity: The mediating role of employee voice. Management Decision, 54, 2310–2324.

Desmarchelier, B., & Fang, E. (2016). National culture and innovation diffusion. Technological Forecasting and Social Change, 105, 121–128.

Dimaggio, P. J., & Powell, W. (1983). The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review, 48, 147–160.

Efrat, K. (2014). The direct and indirect impact of culture on innovation. Technovation, 34, 12–20.

Erez, M., & Nouri, R. (2010). Creativity: The influence of cultural, social, and work contexts. Management and Organization Review, 6, 351–370.

Gallego-Álvarez, I., & Ortas, E. (2017). Corporate environmental sustainability reporting in the context of national cultures: A quartile regression approach. International Business Review, 26, 337–353.

Gaspay, A., Dardan, S., & Legorreta, L. (2008). Software of the mind—A review of applications of Hofstede’s theory to IT research. Journal of Information Technology Theory and Application, 9, 1–37.

Griffith, D., & Rubera, G. (2014). A cross-cultural investigation of new product strategies for technological and design innovations. Journal of International Marketing, 22, 5–20.

Gupta, D. R., Veliyath, R., & George, R. (2018). Influence of national culture on IPO activity. Journal of Business Research, 90, 226–246.

Hoecklin, L. (1996). Managing cultural differences: Strategies of competitive advantage. Wokinghan: Addison-Wesley.

Hofstede, G. (1980). Culture’s consequences: International differences in work-related values. Newbury Park: Sage Publications.

Hofstede, G. (2001). Culture’s consequences: Comparing values, behaviours, institutions, and organizations across nations. Thousand Oaks: Sage Publications.

Hofstede, G., & Hofstede, G. J. (2005). Cultures and organizations: Software of the mind. New York: McGraw-Hill.

Hofstede, G., Hofstede, G. J., & Minkov, M. (2010). Cultures and organizations: Software of the mind. New York: McGraw-Hill.

Hofstede, G. H. (1983). The cultural relativity of organizational practices and theories. Journal of International Business Studies, 14, 75–89.

Hoskisson, R. E., Hitt, M. A., Johnson, R. A., & Moesel, D. D. (1993). Construct validity of an objective (Entropy) categorical measure of diversification strategy. Strategic Management Journal, 14, 215–235.

Ismail, M., & Lu, H. S. (2014). Cultural values and career goals of the millennial generation: An integrated conceptual framework. The Journal of International Management Studies, 9, 38–49.

Jones, G., & Davis, H. (2000). National culture and innovation: Implications for locating global R&D operations. Management International Review, 40, 11–39.

Jones, G. K., & Teegen, H. J. (2001). Global R&D activity of U.S. MNCs: Does national culture affect investment decisions? Multinational Business Review, 9, 1–7.

Jones, M. (2007). Hofstede—Culturally questionable? Oxford Business and Economics Conference. Oxford, UK, 24–26 June.

Kaasa, A., & Vadi, M. (2010). How does culture contribute to innovation? Evidence from European countries. Economics of Innovation and New Technology, 19, 583–660.

Kirkman, B. L., Lowe, K. B., & Gibson, C. B. (2006). A quarter century of culture’s consequences: A review of empirical research incorporating Hofstede’s cultural values framework. Journal of International Business Studies, 37, 285–320.

Kleinknecht, A., van Montfort, K., & Brouwer, E. (2002). The non-trivial choice between innovation indicators. Economics of Innovation and New Technology, 11, 109–121.

Lerner, J., & Wulf, J. (2007). Innovation and incentives: Evidence from corporate R&D. The Review of Economics and Statistics, 89, 634–644.

Lorca, P., & de Andrés, J. (2019). The Importance of cultural factors in R&D intensity. Cross-Cultural Research, 53, 483–507.

Lynn, M., & Gelb, B. D. (1996). Identifying innovative national markets for technical consumer goods. International Marketing Review, 13, 43–57.

Magnier-Watanabe, R., & Senoo, D. (2010). Shaping knowledge management: Organization and national culture. Journal of Knowledge Management, 14, 214–227.

Min, B. S., & Smyth, R. (2016). How does leverage affect R&D intensity and how does R&D intensity impact on firm value in South Korea? Applied Economics, 48, 5667–5675.

Minkov, M. (2018). A revision of Hofstede's model of national culture: Old evidence and new data from 56 countries. Cross-Cultural and Strategic Management, 25, 231–256.

Miska, Ch, Szőcs, I., & Schiffinger, M. (2018). Culture’s effects on corporate sustainability practices: A multi-domain and multi-level view. Journal of World Business, 53, 263–279.

Mohnen, P., & Hall, B. H. (2013). Innovation and productivity: An update. Eurasian Business Review, 3, 47–65.

Nam, D.-I., Parboteeah, K. P., Cullen, J. B., & Johnson, J. L. (2014). Cross-national differences in firms undertaking innovation initiatives: An application of institutional anomie theory. Journal of International Management, 20, 91–106.

Naqshbandi, M. (2016). Managerial ties and open innovation: Examining the role of absorptive capacity. Management Decision, 54, 2256–2276.

Nekhili, M., & Gatfaoui, H. (2013). Are demographic attributes and firm characteristics drivers of gender diversity? Investigating women’s positions on French boards of directors. Journal of Business Ethics, 118, 227–249.

Orij, R. (2010). Corporate social disclosures in the context of national cultures and stakeholder theory. Accounting, Auditing and Accountability Journal, 23, 868–889.

Parboteeah, K. P., & Cullen, J. B. (2003). Social institutions and work centrality: Explorations beyond national culture. Organization Science, 14, 137–148.

Pellegrino, G., & Piva, M. (2020). Innovation, industry and firm age: Are there new knowledge production functions? Eurasian Business Review, 10, 65–95.

Peng, Y-Sh, Dashdeleg, A.-U., & Chih, H. L. (2014). National culture and firm’s CSR engagement: A cross-nation study. Journal of Marketing & Management, 5, 38–49.

Rattrie, L. T., Kittler, M. G., & Paul, K. I. (2020). Culture, burnout, and engagement: A meta-analysis on national cultural values as moderators in JD-R theory. Applied Psychology, 69, 176–220.

Rhyne, L., Teagarden, M., & Van den Panhuyzen, W. (2002). Technology-based competitive strategies: The relationship of cultural dimensions to new product innovation. The Journal of High Technology Management Research, 13, 249–277.

Richardson, P. J., & Boyd, R. (2005). Not by genes alone: How culture transformed human evolution. Chicago: The University of Chicago Press.

Rohlfer, Y., & Zhang, Y. (2016). Cultural studies in international business: Paradigmatic shifts. European Business Review, 28(1), 39–62.

Rujirawanich, P., Addison, R., & Smallman, C. (2011). The effects of cultural factors on innovation in a Thai SME. Management Research Review, 34, 1264–1279.

Scott, W. R. (2001). Institutions and organizations. London: Sage Publications.

Scott, W. R. (2008). Approaching adulthood: The maturing of institutional theory. Theory and Society, 37, 427–442.

Shane, S. (1993). Cultural influences on national rates of innovation. Journal of Business Venturing, 8, 59–73.

Sivak, R., Caplanova, A., & Hudson, J. (2011). The impact of governance and infrastructure on innovation. Post-Communist Economies, 23, 203–217.

Smale, T. (2016). Why national culture should be at the heart of innovation management. Technology Innovation Management Review, 6, 18–25.

Smith, P. B., Peterson, M. F., & Schwartz, S. H. (2002). Cultural Values, Sources of Guidance and their Relevance to Managerial Behaviour: A 47-Nation Study. Journal of Cross Cultural Psychology, 33(2), 188–208.

Song, H., Zhang-Zhang, Y., Tian, M., Rohlfer, S., & Sharkasi, N. (2019). Culture and regional innovation performance: An exploration in China. Chinese Management Studies, 13, 97–420.

Su, S. (2006). Cultural differences in determining the ethical perception and decision-making of future accounting professionals: A comparison between accounting students from Taiwan and the United States. The Journal of American Academy of Business, 9, 147–158.

Sully de Luque, M., & Javidan, M. (2004). Uncertainty avoidance. In J. S. House, P. J. Hanges, M. Javidan, P. W. Dorfman, & V. Gupta (Eds.), Culture, leadership, and organizations: The GLOBE study of 62 societies. Thousand Oaks, CA: Sage.

Syed, H., & Malik, A. N. (2014). Comparative study of effect of culture on technology adoption in Pakistan and USA. The Business and Management Review, 5, 42–51.

Taylor, M. Z., & Wilson, S. (2012). Does culture still matter? The effects of individualism on national innovation rates. Journal of Business Venturing, 27, 234–247.

Tian, M., Deng, P., Zang, Y., & Salmador, M. P. (2018). How does culture influence innovation? A systematic literature review. Management Decision, 56, 1088–1107.

Tsakumis, G. T. (2007). The influence of culture on accountants’ application of financial reporting rules. Abacus, 43, 27–48.

Van Everdingen, Y. M., & Waarts, E. (2003). The effect of national culture on the adoption of innovations. Marketing Letters, 14, 217–232.

Vecchi, A., & Brennan, L. (2009). A cultural perspective on innovation in international manufacturing. Research in International Business and Finance, 23, 181–192.

Vitell, S. J. (2003). Consumer ethics research: Review, synthesis and suggestions for the future. Journal of Business Ethics, 43, 33–47.

Vollero, A., Siano, A., Palazzo, M., & Amabile, S. (2020). Hoftsede's cultural dimensions and corporate social responsibility in online communication: Are they independent constructs? Corporate Social Responsibility and Environmental Management, 27, 53–64.

Waarts, E., & Van Everdingen, Y. (2005). The influence of national culture on the adoption status of innovations: An empirical study of firms across Europe. European Management Journal, 23, 601–610.

Waldman, D., de Luque, S., Washburn, N., & House, R. (2006). Cultural and leadership predictors of corporate social responsibility values of top management: A GLOBE study of 15 countries. Journal of International Business Studies, 37, 823–837.

Wei-Han, L. (2019). National culture effects on stock market volatility level. Empirical Economics, 57, 1229–1253.

Wollan, M. L., Sully de Luque, M., & Grünhagen, M. (2009). Motives for helping: Exploring cultural influences on extra-role behaviour. Multinational Business Review, 17, 99–119.

Yang, T., & Li, C. (2011). Competence exploration and exploitation in new product development: The moderating effects of environmental dynamism and competitiveness. Management Decision, 49, 1444–1470.

Zhang, M. (2011). Firm-level performance impact of IS support for product innovation. European Journal of Innovation Management, 14, 118–132.

Zhang, Y., & Zhou, Y. (2015). The Source of Innovation in China. Hampshire: Palgrave MacMillan.

Title: Hofstede’s cultural dimensions and R&D intensity as an innovation strategy: a view from different institutional contexts
Authors: Isabel Gallego-Álvarez
María Consuelo Pucheta-Martínez
Publication date: 22-07-2020
Publisher: Springer International Publishing
Published in: Eurasian Business Review / Issue 2/2021
Print ISSN: 1309-4297
Electronic ISSN: 2147-4281
DOI: https://doi.org/10.1007/s40821-020-00168-4

Springer Professional

Abstract

Please log in to get access to your license.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft"

Springer Professional "Wirtschaft+Technik"

Other articles of this Issue 2/2021

Religion and corporate tax compliance: evidence from Chinese Taoism and Buddhism

Business environment reforms, innovation and firm productivity in transition economies

Board diversity, financial flexibility and corporate innovation: evidence from China

Multilevel analysis of knowledge sources for product innovation in Russian SMEs

Corruption and firm innovation: a grease or sand in the wheels of commerce? Evidence from lower-middle and upper-middle income economies

Sticky cost behavior: evidence from small and medium sized enterprises in Turkey