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Article
Publication date: 8 March 2013

Hamid Yeganeh

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

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Abstract

Purpose

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

Design/methodology/approach

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.

Findings

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

Research limitations/implications

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.

Practical implications

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.

Originality/value

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

Details

International Journal of Organizational Analysis, vol. 21 no. 1
Type: Research Article
ISSN: 1934-8835

Keywords

Article
Publication date: 25 October 2011

Hamid Yeganeh

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

4013

Abstract

Purpose

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

Design/methodology/approach

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.

Findings

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.

Research limitations/implications

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.

Practical implications

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.

Originality/value

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.

Details

Journal of Strategy and Management, vol. 4 no. 4
Type: Research Article
ISSN: 1755-425X

Keywords

Article
Publication date: 6 June 2019

Bernhard Swoboda and Nadine Batton

The purpose of this paper is to provide a theoretical and empirical comparison of four major national cultural value models for perceived corporate reputation (CR) of…

1873

Abstract

Purpose

The purpose of this paper is to provide a theoretical and empirical comparison of four major national cultural value models for perceived corporate reputation (CR) of multinational corporations (MNCs) across nations: Hofstede, Schwartz, the GLOBE study and Inglehart.

Design/methodology/approach

Two consumer surveys on an MNC and on competitors in 25 countries in the year 2015 (n=20,288 and 25,397) were used for the first time to compare the roles of the cultural value models as antecedents of CR, using multilevel structural equation modeling (MSEM), which disentangles the explained variances on the country level and on the individual level.

Findings

National culture is strongly attributed to individual CR perceptions of MNCs across nations. However, the four conceptual cultural value models explain the variance differently (46.2–84.6 percent) as do particular cultural value dimensions within each model. The results are stable for both surveys.

Research limitations/implications

Novel insights into the roles of cultural value models are provided for international business research. For MNCs aiming to use their CR to attract target groups in foreign countries, this study identifies the most influential cultural value model and particular dimensions.

Originality/value

This study contributes to cultural research by deepening the understanding of the various cultural value models and their importance for MNCs. Moreover, the authors add to the CR research by providing new insights into perception differences and using the still novel MSEM.

Details

Cross Cultural & Strategic Management, vol. 26 no. 2
Type: Research Article
ISSN: 2059-5794

Keywords

Article
Publication date: 24 April 2007

Siew Imm Ng, Julie Anne Lee and Geoffrey N. Soutar

The purpose of this study is to propose an alternative basis for calculating cultural distance scores using Schwartz's cultural values.

20946

Abstract

Purpose

The purpose of this study is to propose an alternative basis for calculating cultural distance scores using Schwartz's cultural values.

Design/methodology/approach

Cultural distance scores were calculated for 23 countries, based on the two most common measures of cultural difference (four cultural dimensions and Schwartz's 1994 culture level values), following Kogut and Singh's formula. Correlation analysis was used to assess the congruency between these two bases of cultural distance. In addition, their relationship with international trade figures was assessed, to understand how well each framework predicts the amount of trade between countries.

Findings

Inter‐country distances between 23 countries suggest that the two bases of cultural distance were not congruent. While the correlation between both cultural distance measures and international trade suggested a negative relationship, as expected, only cultural distance based on Schwartz's values was significantly related to international trade (p<0.05). It would appear that, at least in a trade context, Schwartz's values may play a more significant role than do Hofstede's dimensions.

Originality/value

To date, most cultural distance scores have been based on Hofstede's cultural dimensions. This paper provides the first analysis of cultural distance based on Schwartz's country level values. The paper shows that the two measures are not congruent and that, at least in the context of trade, cultural distance measures based on Schwartz's may be superior. Thus, researchers should carefully consider which cultural base is most appropriate for use in their study.

Details

International Marketing Review, vol. 24 no. 2
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 13 November 2017

Bernhard Swoboda and Johannes Hirschmann

Few scholars have analysed the corporate reputation (CR) of multinational corporations (MNCs) internationally, but both CR perception and effect are likely to differ across…

4417

Abstract

Purpose

Few scholars have analysed the corporate reputation (CR) of multinational corporations (MNCs) internationally, but both CR perception and effect are likely to differ across nations. Most studies have compared a few countries, linked differences to selected dimensions of Hofstede’s cultural approach, and reported ambiguous results. The purpose of this paper is to address the important role of all Hofstede’s cultural dimensions that may influence CR perceptions and effects by applying an appropriate method.

Design/methodology/approach

By integrating signalling theory and each cultural dimension, hypotheses are proposed and tested using consumer surveys of a German MNC in 37 countries. Multilevel structural equation modelling (SEM) showed whether and how all cultural value dimensions – the predominant approach in marketing – affect CR perceptions and effects.

Findings

Individual CR perceptions and effects are strongly attributable to national culture, which explains up to 62 per cent of country-level variance; however, the explanatory powers of the cultural dimensions differ between CR perceptions and effects. Not all dimensions affect both. The results are stable in alternative models.

Research limitations/implications

The results enhance extant research because the relative importance of Hofstede’s dimensions and not only a possible role in country comparisons is shown. Hofstede’s approach explains considerable country-level variances. MNCs learn which cultural dimensions are core antecedents of CR perceptions (individualism and power distance explain >30 per cent variance) and core moderators of CR effects on loyalty (masculinity, individualism and uncertainty avoidance).

Originality/value

This study provides novel insights into the role of national cultural differences on CR perceptions and CR effects using the still novel multilevel SEM.

Details

International Marketing Review, vol. 34 no. 6
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 15 November 2019

Elena Rosillo-Díaz, Francisco Javier Blanco-Encomienda and Esmeralda Crespo-Almendros

While there have always been cultural differences between countries and between individuals, the virtualisation of markets is rendering the impact of these differences even more…

6106

Abstract

Purpose

While there have always been cultural differences between countries and between individuals, the virtualisation of markets is rendering the impact of these differences even more salient. There is clear evidence that cultural dimensions are relevant in the adoption and use of e-commerce. The purpose of this paper is to analyse the significant effects of individual cultural dimensions on perceived product quality, perceived risk and purchase intention in e-commerce platforms.

Design/methodology/approach

A questionnaire was developed to serve as a tool of measurement. A confirmatory factor analysis was conducted to examine whether all the indicators for the constructs are reliable. A multiple regression analysis was carried out to test the hypotheses.

Findings

The results reveal that, in the case of e-commerce platforms, the cultural dimensions uncertainty-avoidance and collectivism exert a significant influence on perceived product quality, perceived risk and purchase intention.

Research limitations/implications

The present study is based on real well-known e-commerce platforms which could have influenced the responses of the sample due to potential past experiences of use. An experimental design based on fictitious platforms could offer more objective findings.

Practical implications

This research contributes to the understanding of e-commerce and the behaviour of consumers during online purchasing, taking into account the cultural differences that may exist between them.

Originality/value

The literature on individual cultural dimensions – that is, non-national cases – and the variables analysed in the present study suffers from great limitations. This study complements a growing interest in analysing the individual cultural dimensions and their effects on the sphere of e-commerce, specifically on perceived product quality, purchase intention and perceived risk during browsing, measured in terms of the six types of risk prevalent in e-commerce platforms.

Details

Journal of Enterprise Information Management, vol. 33 no. 1
Type: Research Article
ISSN: 1741-0398

Keywords

Article
Publication date: 6 February 2017

Kevin D. Lo, Richard D. Waters and Nicklas Christensen

The purpose of this paper is to examine how Hofstede’s six cultural dimensions are reflected on the official corporate Facebook pages from 259 organizations on Fortune magazine’s…

3055

Abstract

Purpose

The purpose of this paper is to examine how Hofstede’s six cultural dimensions are reflected on the official corporate Facebook pages from 259 organizations on Fortune magazine’s Global 500 list. This is the first attempt to create a conceptualization of Hofstede’s dimensions for organizational social media use.

Design/methodology/approach

To determine how Facebook is used by the Global 500 corporations, a content analysis was carried out based on the 2013 listing of the highest revenue corporations throughout the world. As a research method, content analysis allows researchers to examine the actual practices of communication by focusing on the information provided through textual and visual messages.

Findings

The results paint a mixed picture indicating that the global nature of these corporations is echoed in a somewhat similar overall presence on Facebook; but when the individual elements (About Us, updates, and media) are examined, statistical differences emerge in relation to the reflection of the cultural dimensions.

Originality/value

To the authors’ knowledge, this is the first work to match Facebook behaviors with Hofstede’s dimensions. This work needs to be replicated with other organizations to determine its staying power. In addition, future research might tap into agency and any consciousness on the part of social media managers in a specific direction. Depending on those findings, they might make important statements on the emergence of a global social media culture.

Details

Journal of Communication Management, vol. 21 no. 1
Type: Research Article
ISSN: 1363-254X

Keywords

Article
Publication date: 1 June 2015

Boris Urban and Fenosoa A Ratsimanetrimanana

This paper aims to delve deeper into understanding to what extent does culture influence entrepreneurship by connecting the causal chain from cultural values to perceived…

1879

Abstract

Purpose

This paper aims to delve deeper into understanding to what extent does culture influence entrepreneurship by connecting the causal chain from cultural values to perceived desirability to entrepreneurial intention (EI). Cultural values form a central part of entrepreneurial discourse and have accordingly been the subject of several studies relating to EIs.

Design/methodology/approach

The study takes place in an under-researched country, Madagascar, where instead of focussing on national culture a more nuanced approach is taken by studying several fine-grained groupings of culture at the ethnic level. Based on a survey, 2,220 responses are statistically analysed according to the three main ethnic groups in Madagascar.

Findings

In terms of hypotheses testing, findings show that cultural dimensions influence the relationship between perceived desirability and EI only for the highlander ethnic group. Differences between the ethnic groups are also observed in terms of the indulgence-restraint cultural dimension.

Practical implications

When encouraging entrepreneurship in Madagascar policymakers should take cognisance of the complexity of cultural factors among ethnic groups and the interrelationship between perceived desirability and intentions.

Originality/value

This is one of the first studies to measure cultural values in Madagascar and include the indulgence-restraint cultural dimension. The study takes place in a multicultural, non-Western and predominantly necessity-based entrepreneurship context, where understanding the role that culture plays in shaping intentions can prove to be valuable.

Details

Journal of Entrepreneurship in Emerging Economies, vol. 7 no. 2
Type: Research Article
ISSN: 2053-4604

Keywords

Article
Publication date: 12 October 2021

Gianluca Zanellato and Adriana Tiron-Tudor

The purpose of the research is to shed light on how the mandatory regulation on nonfinancial information has changed European state-owned enterprises' (SOEs) disclosure levels. In…

Abstract

Purpose

The purpose of the research is to shed light on how the mandatory regulation on nonfinancial information has changed European state-owned enterprises' (SOEs) disclosure levels. In addition, the present research aims to demonstrate, under the lens of legitimacy theory, how Hofstede's cultural dimensions shape social expectations that may have suffered changes after the introduction of a mandatory regulation on nonfinancial reporting.

Design/methodology/approach

The paper adopts a mixed approach. First, it employees the content analysis to investigate the disclosure level on 22 of the 24 European SOEs. Second, the authors demonstrate how cultural dimensions take a different role when a change in regulation is introduced using the qualitative comparative analysis (QCA).

Findings

The results reveal a slight increase in disclosure from the year before introducing the directive. Additionally, the results demonstrate how none of Hofstede's cultural dimensions is responsible for high disclosure levels. Although, the sufficiency analysis outlines several combinations of different cultural dimensions that lead to high disclosure levels. In particular, results demonstrate how the core dimensions leading to the outcome changed once the European Union Directive (EUD) has entered into force.

Research limitations/implications

Despite the contributions, the present study is not free of limitations. As the investigated sample is limited to a small number of SOEs, the content analysis adopts a dichotomous approach. The analysis is conducted on integrated reporting, and the fuzzy set QCA results cannot be used for generalization but refer only to the investigated sample. Consequently, further studies should investigate a broader sample of SOEs and organizations that adopt other nonfinancial reporting frameworks. Additionally, a qualitative approach to the reports' analysis is recommended.

Practical implications

It demonstrates how the EUD on nonfinancial information has impacted the disclosure levels of European SOEs. It adopts a fresh methodology rarely used in accounting. It demonstrates how cultural conditions influence social expectations that determine corporations to disclose more information after the introduction of a regulatory framework.

Originality/value

The paper's theoretical contribution refers to its focus on the public sector, and it adopts a methodology rarely used by accounting scholars.

Details

Journal of Applied Accounting Research, vol. 23 no. 1
Type: Research Article
ISSN: 0967-5426

Keywords

Article
Publication date: 3 August 2015

Cristina López-Duarte, Marta M. Vidal-Suárez and Belén González-Díaz

The purpose of this paper is to study the influence of cultural positions on the choice of entry mode in foreign direct investment (FDI) – joint ventures vs wholly owned…

1992

Abstract

Purpose

The purpose of this paper is to study the influence of cultural positions on the choice of entry mode in foreign direct investment (FDI) – joint ventures vs wholly owned subsidiaries. The paper focusses on the impact of cultural positions along four cultural dimensions, as well as on the interactions between these positions and FDI’s contextual variables (i.e. linguistic differences).

Design/methodology/approach

A fuzzy set qualitative comparative analysis is performed on a data set of Spanish investments located in the European Union.

Findings

Existence of interaction effects among cultural positions along different dimensions, as well as between cultural positions and FDI’s contextual variables.

Research limitations/implications

Main limitations relate to the data set, as only FDIS carried out by big corporations and coming from a single country are considered.

Practical implications

Managers making decisions on the choice of entry mode must take into account the position relative to each individual cultural dimension, as well as its interaction with other cultural dimensions and FDI’s contextual variables, rather than just considering cultural distances (CDs) between countries.

Originality/value

First, focus on cultural positions (rather than CDs). It allows taking into account both the cultural characteristics of each party and their relative values along individual cultural dimensions. Second, development of a qualitative analysis that considers the contextual features of the investment.

1 – 10 of over 65000