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This article aims at offering and validating a theory‐driven conceptualization of the cultural distance index.

First, the cultural distance index is conceptualized, its conceptual properties are discussed, and a generic formula is proposed. Subsequently, the generic formula is applied to Schwartz's and Hofstede's frameworks. Finally, using the new formula the cultural distance is calculated, its robustness is examined, and its advantages over the Kogut and Singh's measure are inspected.

Through this paper it is found that by considering issues such as cultural dimensions' alignment and their relative weight, it is possible to build a more accurate index of cultural distance. Moreover, based on the generic formula it is understood that collectivism/individualism and power distance in Hofstede's framework and conservatism, egalitarianism in Schwartz's model are important cultural dimensions and account for a considerable weight in the cultural distance index.

The index is based on cultural dimensions and naturally it carries all shortcomings attributed to dimensionalization such as symmetry, linearity, stability and causality. In addition, it can be recognized that while alignment is a legitimate method, it should be interpreted cautiously because cultural dimensions are essentially nebulous concepts.

Researchers may use the proposed index to test the implications of cultural differences for a wide range of cross‐national issues such as joint ventures, entry mode choices, mergers, negotiations, organizational behavior, and technology transfer.

This article offers a novel and theory‐driven approach to building the cultural distance index. Considering the popularity of the Kogut and Singh's index in international business, the paper is of major significance.

This study aims at investigating the effects of cultural values on corruption by integrating Hofstede's, Schwartz's, and Inglehart's frameworks.

First, corruption is conceptualized and Schwartz's, Hofstede's and Inglehart's cultural dimensions are presented. In the second part, the relationships among concepts are discussed and the hypotheses, variables, and theoretical models are presented. Then, the empirical tests are conducted, the theoretical/managerial implications are discussed, and an integrative model is proposed.

The empirical analysis confirms that after controlling for the effects of socio-economic development, cultural values have considerable influence on the level of perceived corruption. More specifically, it is found that Hofstede's High Power Distance, High Uncertainty Avoidance, Masculinity and Collectivism, Schwartz's Conservatism and Harmony, and Inglehart's Survival and Traditional-religious dimensions are associated with the corrupt behavior. By contrast, the opposite values namely Hofstede's Low Power Distance, Low Uncertainty Avoidance, Femininity, and Individualism, Schwartz's Autonomy and Mastery, and Inglehart's Self-Expression and Rational-secular dimensions tend to impede corruption.

This study has a limited scope as it relies on narrow conceptualizations of culture and corruption. Furthermore, like many cross-cultural studies, the current analysis relies solely on the national-level data and overlooks the effects of intra-national variations. It is important to note that while culture has important implications for the corrupt behavior, its effects should not be considered as deterministic.

By referring to the integrative model of this study, managers and scholars can conveniently describe a country's culture, understand the implications, and make sense of the level of associated corruption.

This study contributes to the literature by integrating three widely employed cultural frameworks, by incorporating a large number of countries into the research design, by providing a profound understanding of the influence of culture on corruption, and particularly by offering a comprehensive model for scholars and practitioners.

The purpose of this paper is to offer a compound index of cultural dimensions.

First, the idea of the compound index is described. Then, by integrating Hofstede's and Inglehart's frameworks, the Compound Culture Index (CCI) is constructed, its scores for different countries are computed, and its robustness is validated. Finally, the theoretical implications and practical applications are discussed and some avenues for future research are pointed out.

A Compound Culture Index (CCI) on the basis of Hofstede's and Inglehart's frameworks is conceptualized, computed, and validated.

Culture is a very complex concept and cannot be fully grasped by a few dimensions or a dichotomous index. Hofstede's and Inglehart's models have some theoretical/operational differences and correspond to dissimilar time frames that may make their integration imperfect. Due to lack of data, Hofstede's fifth dimension (Timer Orientation) was not included in the calculation of the CCI.

The CCI bridges Hofstede's and Inglehart's cultural frameworks and offers an integrative measure of national culture. In addition, the CCI represents a robust measure that can be conveniently employed in empirical research.

The CCI offers a methodologically novel, theoretically defensible, and operationally robust approach to measuring national cultures.

The purpose of this paper is to examine the reliability and validity of Hofstede's cultural framework when applied at the individual consumer level.

MBA students and faculty in the behavioral sciences were asked to review Hofstede's cultural instrument and to indicate which dimension (power distance, individualism/collectivism, uncertainty avoidance, masculinity/femininity) each particular item was intended to reflect. Subjects were also asked to respond to each item, thus indicating their underlying values. The reliability of each dimension was computed, and the data were factor analyzed to determine whether the various items loaded in a manner that is consistent with Hofstede's framework, thus providing evidence as to discriminant and convergent validity.

This study presents evidence that Hofstede's cultural instrument lacks sufficient construct validity when applied at an individual level of analysis. Overall, a majority of the items were lacking in face validity, the reliabilities of the four dimensions were low, and the factor analyses did not result in a coherent structure.

It is hoped that these findings will eventually lead to a reliable and valid measure that captures the richness of the various cultural dimensions and can be deployed at the individual and sub‐group levels of analysis. Such a measure would be valuable for market segmentation, and for understanding why consumers from diverse regions and cultures react differently to various marketing tactics.

Given the diversity of the world marketplace, it is essential that marketers have a robust measure of culture so that our understanding of consumer behavior can keep pace with a rapidly changing environment.

Examines the influence national culture has on the design of information systems through a comparative study of geographic information systems (GIS) design in the USA and Germany. Hofstede’s (1980) dimensions of national culture provide the theoretical framework for this research. Applying Hofstede’s dimensions, evaluates differences in the design documents and actual practice of design of King County, Washington, USA and Kreis (County) Osnabrück, Germany. The findings support Hofstede’s characterization at the conceptual level of design documents, but indicate that the practice of design in the German county deviates considerably from Hofstede’s characterization: whereas Germanic national cultural characteristics suggest a very regulated top‐down design process, the actual practice of design in Kreis Osnabrück involves, in fact, a great deal of negotiations. They lead to the formalization of efforts and preparation of standards. These negotiations are obscured by the cultural emphasis on regulation, as Hofstede did indeed predict through high uncertainty avoidance. In comparison, the findings in King County support Hofstede’s characterization that Anglo‐American national culture involves negotiations at all stages of design. These findings lead to a reconsideration of Hofstede’s national cultural dimensions. Formal design documents replicate national culture characteristics, obscuring the details of practice. Hofstede’s national cultural dimensions provide a valuable framework, but the practice of design in both counties is ultimately a process of negotiation.

This paper aims to review the use of Hofstede’s cultural dimensions in accounting research over the period 1995-2015.

The author combines electronic and manual searches to identify relevant studies using key words like “national culture” or “Hofstede’s cultural dimensions” and “accounting” or “auditing” or “taxation”. The search yields a total number of 35 published studies. For each reviewed stream of research, the author presents its theoretical underpinning and summarises its main results.

The paper identifies four main accounting research topics being reporting policy, auditing, taxation and miscellaneous accounting. These studies use three main methodologies including empirical, experiment and meta-analysis. The review reveals that individualism is positively related to corporate reporting policy, while it is associated with low levels of tax evasion. High levels of masculinity are generally associated with low disclosure environments and aggressive accounting manipulations. Finally, long-term orientation has been examined with respect to social environmental disclosure, and findings are supportive of a positive association between both variables.

This literature review represents a historical record, an introduction and a guidance for researchers who aim to examine whether Hofstede’s cultural dimensions may be useful in explaining other accounting phenomena. It also presents the main criticisms addressed to Hofstede’s framework. Finally, it conducts a critical analysis for reviewed studies and highlights their reductionist approach in explaining accounting phenomena and methodological weaknesses.

The effect of culture, through the accounting values of conservatism and secrecy, on accounting judgments is an area of research extensively studied in developed countries. However, little research has focused on this issue in developing countries, specifically Arab countries. Thus, this study aims to fill this gap by investigating the impact of the combined effect of the culture/accounting dimensions on the interpretation of the probability expressions used in the international accounting standards/international financial reporting standards (IFRSs) in two North African/Arab countries: Tunisia and Egypt.

In the first place, this study determines Hofstede’s cultural index scores for Tunisia, ignored in his original model and updates those related to Egypt, which provides a more relevant understanding of the cultural effect. Then, the study relies on the Hofstede/Gray cultural accounting model to examine the extent to which the accounting values of conservatism and secrecy may affect the recognition of the increase and the decrease of income and the disclosure of this information in the financial statements by postgraduate accounting student in both countries.

The results provide evidence of the generalizability of Gray’s conservatism hypothesis in the North African/Arab countries (i.e. Tunisia and Egypt), at least in the context of income recognition. Moreover, the findings demonstrate that culture, through its influence on the accounting value of secrecy, affects the interpretation of probability expressions used in the IFRSs to establish disclosures.

This study calls for more attention from the standard setters to provide further guidance related to the consistent and accurate numerical value that needs to be assigned to the probability expressions to reduce the ambiguity related to their interpretation. The international accounting standards board (IASB) should pay greater attention to the use of vague probability expressions in developing the IFRSs to promote the true comparability of financial reporting worldwide. Like with any research, this study implies certain limitations specifically related to the sample selection, a sample size, which may affect the generalizability of the results. Thus, future research may rely on a larger sample combining and cover other cultural areas.

The results of this study may give insights into the practical issues faced by the accounting practitioners and which are related to the interpretation and the application of the IFRS including probability expressions. This may trigger their attention toward this issue to reduce the occurrence of these expressions in the revised and newly released standards to guarantee homogeneous financial reporting practices across countries and enhance the IASB’s objective of international accounting harmonization.

This study might be the first one that investigates the issue of the IFRS interpretation in two North African and Arab countries: Tunisia and Egypt. It also provides an original investigation of the cultural effect on accounting judgments based on the actualized Hofstede’s cultural indexes, especially for Tunisia which is ignored in the original country classification.

The purpose of this paper is to examine whether the direction of cultural distance in individualism, power distance, uncertainty avoidance, and masculinity affects bilateral foreign direct investment (FDI) activities.

Panel data that include bilateral FDI between 21 OECD countries, and for FDI from these OECD countries to 14 non‐OECD countries between 1980 and 2000 were used. In addition, hypotheses were tested by using Hofstede's cultural dimensions for FDI between 1980 and 1989 and then by applying the GLOBE (Global Leadership and Organizational Behavior Effectiveness) cultural indices for FDI between 1990 and 2000.

It was found that difference in individualism between two countries encourages FDI while difference in power distance discourages FDI. In addition, based on Hofstede's cultural scores, the direction of cultural distance matters when a host and a source country differ in uncertainty avoidance and masculinity. However, the finding is mixed with the GLOBE cultural measures.

In this paper, the aggregation of human behavior theory is relied on to develop a theoretical framework. This type of analysis is valid as long as the companies involved are homogenous. Even if multi‐national companies are heterogeneous, the author believes that a bounded rationality is needed to add some discipline and substance to a more comprehensive but less structured analysis/experience at the individual or firm level.

The paper's findings indicate that a complementary relationship exists for FDI between collective and individualistic countries and difference in power distance discourages FDI. In addition, the direction of cultural distance matters for uncertainty avoidance and masculinity. Therefore, it is not always true that companies should shun countries that are culturally different from their home country when making FDI decisions.

The paper makes several contributions to the extant literature. First, the paper responds to the critique by Shenkar, by applying separate rather than the composite cultural distance in empirical research. Second, the paper suggests that cultural distance is not equal to cultural incongruence. Third, this paper is one of the first that uses a sample size that is similar to the number of countries in Hofstede's original study in 1980. Finally, in response to the stability criticism towards Hofstede's framework, this paper tests the cultural impact on FDI by applying both the Hofstede and GLOBE cultural scores.

The objective of this study is to investigate to what extent advertising appeals in Hong Kong and Korea are different, and whether the differences between the two countries can be attributed to the differences in nations' cultural characteristics. Hypotheses are drawn in relation to the two dimensions of Hofstede's framework – uncertainty avoidance and masculinity/femininity.

A sample of 803 prime‐time television commercials from the two countries was analyzed using Cheng and Schweitzer's classification of advertising appeals.

The results show that femininity is an important variable for explaining differences in advertising between Hong Kong and Korea. Both Hong Kong and Korean advertising show no difference in values of high uncertainty avoidance, although an appeal of high uncertainty avoidance was used more often in Korean advertising. However, values of low uncertainty avoidance are more prevalent in television commercials in Korea, a country of high uncertainty avoidance, than Hong Kong, a country of low uncertainty avoidance. It is also found that the correlation between product categories and cultural values is society‐based.

This study reveals that Hofstede's framework does explain cross‐cultural differences between Hong Kong and Korea and provides empirical evidences for the impact of value paradoxes on advertising in both countries, suggesting that Hofstede's framework and the value paradoxes provide a possible theory for testing the relationship of the society and its advertising content within a culture as well as across cultures.

This study aims at offering a comprehensive thesis about the relationship between different cultural values and innovativeness.

Building on the human emancipation perspective and using data from Hofstede’s, Schwartz’s, and Inglehart’s cultural frameworks, the authors conduct a cross-national investigation into the effects of cultural values on national innovativeness.

The analyses show that emancipatory cultural dimensions such as rationality, secularity, self-expression, individualism, low uncertainty avoidance, long-term orientation, mastery and autonomy have significantly positive associations with national innovativeness. The opposing cultural values, such as traditionalism, religiosity, survival, collectivism, high uncertainty avoidance, short-term orientation, harmony and conservatism, have negative associations with national innovativeness.

This study contributes to the literature by putting forward a comprehensive and theory-driven explanation of the relationship between cultural values and innovativeness, by using all of Hofstede’s, Schwartz’s and Inglehart’s dimensions, by incorporating ethnic, linguistic and religious diversities and by applying alternative measures of the national innovativeness.