National culture and R&amp;D investments

Choi, Kyeong-Seop

doi:10.1080/1351847x.2019.1697324

Cited by 20 publications

(13 citation statements)

References 63 publications

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“…However, their findings have not been consistent. For instance, despite theorizing about a positive causal relationship between LTO and R&D expenditures, Choi (2020) finds that LTO reduces R&D expenditures, whereas Lewellyn (2015) find that LTO increases R&D investments in the global paper products industry. The findings of this study indicate that LTO's weak capacity to increase long-term investments could explain this inconsistency.…”

Section: Discussionmentioning

confidence: 99%

What matters for the future? Comparing Globe's future orientation with Hofstede's long-term orientation

Alipour¹

2021

CCSM

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PurposeThis paper aims to compare the future orientation (FO) society practices dimension of the Globe model with Hofstede's long-term orientation (LTO) by testing their causal effects on three firm-level variables: cash holdings, long-term investments and acquisitions. In doing so, this research challenges the already taken-for-granted assumption in the empirical research that the two dimensions are equivalent.Design/methodology/approachHierarchical linear modeling (HLM) was used to test the hypotheses on 7,065 firms across 49 countries between 2000 and 2017.FindingsThe findings show that the causal impacts of FO society practices and LTO on a given construct are not consistent. Although LTO increases cash holdings, the impact of FO society practices on this variable is insignificant. Additionally, unlike FO society practices, which significantly increases long-term investments and acquisitions, LTO does not influence long-term investments and decreases acquisitions.Originality/valueThis study is valuable since it addresses the confusion surrounding the similarities and differences between FO society practices and LTO. Despite the dissimilarity also emphasized by Globe, Hofstede claims that they are equivalent, and the great majority of the empirical literature has assumed them to be equivalent in their analyses. Addressing this confusion, this research provides further empirical evidence that these two dimensions are dissimilar. The additional important contribution of the study is theorizing and examining the impact of FO society practices and LTO on the firm-level outcomes that reflect their temporal orientation (i.e. long-term investments and acquisitions), which is surprisingly neglected in the literature.

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Section: Discussionmentioning

confidence: 99%

What matters for the future? Comparing Globe's future orientation with Hofstede's long-term orientation

Alipour¹

2021

CCSM

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“…Supporting this view, two recent systematic reviews conclude that considerable attention is needed to understand the interplay between informal institutions, corporate governance mechanisms, and firms' outcomes (Isidro et al, 2020; Zattoni et al, 2020). Indeed, several studies that address the role of corporate governance, such as board gender diversity or independence, ignore the potential interdependency between corporate governance mechanisms and informal institutions (Choi, 2020; Isidro et al, 2020; Zattoni et al, 2020). Supporting the importance of addressing gender diversity in combination with other contextual factors, Fernandez et al (2018) find that the role of gender diversity varies between different organisational contexts.…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

“…Several studies call for further research on how religious differences among countries influence corporate decisions (Farooq et al, 2019; Zattoni et al, 2020). In particular, prior studies indicate that there is little attention to how informal institutional factors, in combination with internal corporate governance, affect firms' outcomes (Choi, 2020; Isidro et al, 2020; Zattoni et al, 2020). For example, using a systematic review approach, Zattoni et al (2020) and Isidro et al (2020) suggested that the role played by informal institutions is largely neglected in the accounting and finance literature.…”

Section: Introductionmentioning

confidence: 99%

Board gender diversity and ESG decoupling: Does religiosity matter?

2023

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In this paper, we examine the relationship between board gender diversity and environmental, social, and governance (ESG) decoupling and the moderating effect that religiosity has on this relationship. We utilise an international sample of 26,176 firmyear observations that cover the period from 2005 to 2019. Consistent with the upper echelon theory and the gender socialisation theory, we provide evidence that firms with a more gender-diversified board of directors tend to engage less in ESG decoupling, and this relationship is more pronounced among firms domiciled in countries with a low level of religiosity. We also find that the effect of religiosity on the relationship between board gender diversity and ESG decoupling is more pronounced for firms that engage in greenwashing and those operating in controversial industry sectors. Our study contributes to the growing debate on ESG decoupling, offering policy insights to regulators and policymakers into the role of board gender diversity and religiosity in reducing unethical managerial behaviour.

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“…Bukowski and Rudnicki (2019) maintain that indulgence promotes emotional autonomy and stimulates a greater demand for design innovations. Choi (2020) argues that indulgence is a prerequisite for creativity, venturing, and risky investments. An extensive body of research has validated that R&D decisions are influenced by managers’ cognition and interpretation of their decision environments (e.g., Chen and Miller 2007; Lewellyn and Bao 2015; O’Brien and David 2014).…”

Section: Research Hypothesesmentioning

confidence: 99%

National Culture and the Cyclical Behavior of Research-and-Development Expenditure

Kim¹

2021

Journal of International Marketing

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This article examines the cyclical behavior of business (firm-financed) R&D expenditure at the national level, using a panel of 64 countries spanning about 4 decades. R&D is considerably more volatile than GDP and tends to be procyclical. We adopt the Hofstede framework to investigate systematically cross-national heterogeneity in comovement and volatility of R&D. Similar to prior studies, a higher R&D intensity (R&D expenditure / GDP) is associated with more uncertainty accepting, long-term oriented, and indulgent countries. Notably, R&D behaves less procyclically in more uncertainty accepting, individualistic, long-term oriented, and indulgent countries, and it is less volatile in more masculine, individualistic, long-term oriented, and indulgent countries. That is, a culture with a higher propensity to invest in R&D tends to follow business cycles less closely (i.e., lower comovement) and have more persistent spending over time (i.e., lower volatility). Furthermore, higher comovement or volatility of R&D indeed harms national productivity and innovativeness. Therefore, this research broadens our understanding of the role national culture plays by demonstrating (1) that it affects considerably the cyclical behavior of R&D and (2) that this cyclical behavior is another conduit through which culture influences economic performance.

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National culture and R&D investments

Cited by 20 publications

References 63 publications

What matters for the future? Comparing Globe's future orientation with Hofstede's long-term orientation

What matters for the future? Comparing Globe's future orientation with Hofstede's long-term orientation

Board gender diversity and ESG decoupling: Does religiosity matter?

National Culture and the Cyclical Behavior of Research-and-Development Expenditure

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