Received: 2021-11-11  |  Accepted: 2021-12-20  |  Published: 2021-12-30

Title

Research on the reflection of cultural dimensions in international business


Abstract

The objective of this research is to reveal the reflection of cultural dimensions in international business. The management of an international business is complex and varies according to culturally determined values. To achieve success in international business, it is necessary to understand how cultural differences across and within countries affect it. Authors took under revision the international companies listed under the Nasdaq database (2021) and researched interlinks in the North-West region of Europe. The authors delivered the research in two stages. In the first stage, the authors constructed a matrix of cultural dimensions. Then formed the equation at the second step by using the Generalized Moments Method, which eliminates inaccurate assumptions. The authors used panel data analysis and constructed equations. The theoretical research results highlight the cultural dimensions identified in the 31 studies in the priority of attention. The authors' research proves that three main cultural dimensions affect the revenue of the international business. We came to the insight that the impact of culture in doing business globally is growing rapidly.


Keywords

international business, cultural differences, dimensions


JEL classifications

M14 , F20 , F23


URI

http://jssidoi.org/ird/article/87


DOI


HAL


Pages

101-114


Funding

The research was partly supported by The program of internationalization of scientific research of KUL no. W.106.I.2019 (Paths of cooperation – support for entities implementing international cooperation), funded by European Social Fund

This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License

Authors

Leonavičienė, Edita
Vilnius Gediminas Technical University, Vilnius, Lithuania https://vilniustech.lt
Articles by this author in: CrossRef |  Google Scholar

Burinskienė, Aurelija
Vilnius Gediminas Technical University, Vilnius, Lithuania https://vilniustech.lt
Articles by this author in: CrossRef |  Google Scholar

Journal title

Insights into Regional Development

Volume

3


Number

4


Issue date

December 2021


Issue DOI


ISSN

ISSN 2345-0282 (online)


Publisher

VšĮ Entrepreneurship and Sustainability Center, Vilnius, Lithuania

Cited

Google Scholar

Article views & downloads

HTML views: 2818  |  PDF downloads: 1600

References


Agodzo, D. (2014). Six Approaches to Understanding National Cultures : Hofstede's Cultural Dimensions. Running Head: Six Approaches to Understanding National Cultures, November, 0–11. https://doi.org/10.13140/RG.2.1.5041.8009

Search via ReFindit


Caputo, Andrea; Ayoko, Oluremi B.; Amoo, Nii; Menke, C. (2019). 1 The relationship between cultural values, cultural intelligence and negotiation styles Pre-print version accepted for publication in the Journal of Business Research Andrea Caputo (. Journal of Business Research, 1–35. https://core.ac.uk/download/pdf/189230807.pdf%0A

Search via ReFindit


Centre, L. I. (2017). The importance of cultural differences in international business. 1(No.2), 151–170.

Search via ReFindit


Daňková, A., & Droppa, M. (2015). The Impact of National Culture on Working Style of Slovak Managers. Procedia Economics and Finance, 34(15), 164–171. 01615-9 https://doi.org/10.1016/s2212-5671(15)

Search via ReFindit


Decker, J. C. (2019). Relationship Between Cultural Distance and Entry Mode by Western European Multinational Enterprises into Eastern Asia Submitted by Jacob Curt Decker A Dissertation Presented in Partial Fulfillment of the Requirements for the Degree Doctorate of Business A. GRAND CANYON UNIVERSITY.

Search via ReFindit


Fan, Z., Huang, S., & Alexander, W. R. J. (2017). Do national cultural traits affect comparative advantage in cultural goods? Sustainability (Switzerland), 9(7), 1–16. https://doi.org/10.3390/su9071153

Search via ReFindit


Fengfan, M. (2015). Managing Cultural Differences in International Business Negotiations. Proceedings of the 12Th International Conference on Innovation And, 175–179.

Search via ReFindit


Ferreira, M. P., Leiria, I. P. De, & Li, D. (2007). Is the 'International Business Environment' the Actual Context for IB Research ? University of Texas at Dallas , USA. Management.

Search via ReFindit


Ferreira, P. M. das N. (2017). Negotiation for the middle east: a comparative study of cultures and the construction of a negotiation framework for portuguese in Kuwait. https://repositorio.iscte-iul.pt/bitstream/10071/15806/1/pedro_neves_ferreira_diss_mestrado.pdf

Search via ReFindit


Fischer, R., Vauclair, C. M., Fontaine, J. R. J., & Schwartz, S. H. (2010). Are individual-level and country-level value structures different? testing hofstede's legacy with the schwartz value survey. Journal of Cross-Cultural Psychology, 41(2), 135–151. https://doi.org/10.1177/0022022109354377

Search via ReFindit


Głodowska, A., Pera, B., & Wach, K. (2016). The International Environment and Its Influence on the Entrepreneurial Internationalization of Firms: The Case of Polish Businesses. Problemy Zarzadzania, 14(3 (62)), 107–130. https://doi.org/10.7172/1644-9584.62.7

Search via ReFindit


Gonzalez, N. L. (2021). ScholarWorks @ GVSU The Impact of Culture on Business Negotiations The Impact of Culture on Business Negotiations. Honors Projects. 839, 13. https://scholarworks.gvsu.edu/honorsprojects/839

Search via ReFindit


Gujrati, R. (2017). Role of environment in International business. International Journal of Advanced Research and Development, 2(November 2017), 53–56.

Search via ReFindit


Guo, Q., Liu, Z., Li, X., & Qiao, X. (2018). Indulgence and long term orientation influence prosocial behavior at national level. Frontiers in Psychology, 9(SEP), 1–10. https://doi.org/10.3389/fpsyg.2018.01798

Search via ReFindit


Hofstede, G. (1980). Culture's Consequences International Differences in Work-Related Values (ABRIDGED E). SAGE Publications, Inc. SAGE Publications, Inc

Search via ReFindit


Hofstede, G. (2011). Dimensionalizing Cultures: The Hofstede Model in Context. Online Readings in Psychology & Culture, 2, 1–26.

Search via ReFindit


Hofstede, G. (2021). Cultural compass. https://www.hofstede-insights.com/product/compare-countries/

Search via ReFindit


Hofstede, G. J., Jonker, C. M., & Verwaart, T. (2008a). Long-term orientation in trade. Lecture Notes in Economics and Mathematical Systems, 614(January 2008), 107–119. https://doi.org/10.1007/978-3-540-70556-7_9

Search via ReFindit


Hofstede, G. J., Jonker, C. M., & Verwaart, T. (2008b). Modeling culture in trade: Uncertainty avoidance. Proceedings of the 2008 Spring Simulation Multiconference, SpringSim'08, January, 143–150. https://doi.org/10.1145/1400549.1400567

Search via ReFindit


Hofstede, G. J., Jonker, C. M., Verwaart, T., & Yorke-Smith, N. (2019). The Lemon Car Game Across Cultures: Evidence of Relational Rationality. Group Decision and Negotiation, 28(5), 849–877. https://doi.org/10.1007/s10726-019-09630-9

Search via ReFindit


Hofstede, G., Hofstede, G. J., Minkov, M. (2010). Culture and Organizations. In International Studies of Management & Organization (Vol. 10, Issue 4). https://doi.org/10.1080/00208825.1980.11656300

Search via ReFindit


Ladhari, R., & Skandrani, H. (2014). Effects of Individualism and Power Distance on Business Student Judgments of Various Negotiating Tactics. Journal of International Management Studies, 14(1), 103–117. https://doi.org/10.18374/jims-14-1.13

Search via ReFindit


Lanigan, R. L. (1978). : Beyond Culture. Edward T. Hall. American Anthropologist, 80(2), 403–403. https://doi.org/10.1525/aa.1978.80.2.02a00330

Search via ReFindit


Lee, K.-H., & Herold, D. M. (2016). Cultural relevance in corporate sustainability management: a comparison between Korea and Japan. Asian Journal of Sustainability and Social Responsibility, 1(1), 1–21. https://doi.org/10.1186/s41180-016-0003-2

Search via ReFindit


Lin, C. (2007). Factors affecting innovation in logistics technologies for logistics service providers in China. Journal of Technology Management in China, 2(1), 22–37. https://doi.org/10.1108/17468770710723604

Search via ReFindit


Liu, M. (2018). How Power Distance Interacts with Culture and Status to Explain Intra‐ and Intercultural Negotiation Behaviors: A Multilevel Analysis. Negotiation and Conflict Management Research, 12(3), 192–212. Portico. https://doi.org/10.1111/ncmr.12140

Search via ReFindit


Liu, M., Zhu, L., & Cionea, I. A. (2019). What Makes Some Intercultural Negotiations More Difficult Than Others? Power Distance and Culture-Role Combinations. Communication Research, 46(4), 555–574. https://doi.org/10.1177/0093650216631096

Search via ReFindit


Liu, W., & Liu, L. A. (2011). Cultural Intelligence in International Business Negotiation. SSRN Electronic Journal, May 2006. https://doi.org/10.2139/ssrn.905460

Search via ReFindit


Manrai, L. A., & Manrai, A. K. (2010). The influence of culture in international business negotiations: A new conceptual framework and managerial implications. Journal of Transnational Management, 15(1), 69–100. https://doi.org/10.1080/15475770903584607

Search via ReFindit


Masuda, T., Ito, K., Lee, J., Suzuki, S., Yasuda, Y., & Akutsu, S. (2020). Culture and Business: How Can Cultural Psychologists Contribute to Research on Behaviors in the Marketplace and Workplace? Frontiers in Psychology, 11(July), 1–20. https://doi.org/10.3389/fpsyg.2020.01304

Search via ReFindit


Merkin, R. S. (2004). Cultural Long Term Orientation and Facework Strategies. Atlantic Journal of Communication, 12(3), 164–176. https://doi.org/10.1207/s15456889ajc1203_3

Search via ReFindit


Minh, H. (2015). the Impacts of Individualism/Collectivism on Consumer Decision-Making Styles: The case of Finnish and Vietnamese mobile phone buyers. 67. https://www.theseus.fi/bitstream/handle/10024/103353/TUAS-Bachelor-Thesis-2015_-Hoang-Minh.pdf?sequence=1&isAllowed=y

Search via ReFindit


Mockaitis, A. I., Rose, E. L., & Zettinig, P. (2012). The power of individual cultural values in global virtual teams. International Journal of Cross Cultural Management, 12(2), 193–210. https://doi.org/10.1177/1470595812439868

Search via ReFindit


Nasdaq.com. (2021). No Title. https://www.nasdaq.com/market-activity/stocks

Search via ReFindit


Ng, S., & Lim, X. (2019). Are Hofstede's and Schwartz's values frameworks equally predictive across contexts? Review of Business Management, 21(1), 33–47. https://doi.org/10.7819/rbgn.v0i0.3956

Search via ReFindit


Ogihara, Y. (2018). The Rise in Individualism in Japan: Temporal Changes in Family Structure, 1947-2015. Journal of Cross-Cultural Psychology, 49(8), 1219–1226. https://doi.org/10.1177/0022022118781504

Search via ReFindit


Ralston, D. A., Egri, C. P., Furrer, O., Kuo, M. H., Li, Y., Wangenheim, F., Dabic, M., Naoumova, I., Shimizu, K., de la Garza Carranza, M. T., Fu, P. P., Potocan, V. V., Pekerti, A., Lenartowicz, T., Srinivasan, N., Casado, T., Rossi, A. M., Szabo, E., Butt, A., … Weber, M. (2014). Societal-Level Versus Individual-Level Predictions of Ethical Behavior: A 48-Society Study of Collectivism and Individualism. Journal of Business Ethics, 122(2), 283–306. https://doi.org/10.1007/s10551-013-1744-9

Search via ReFindit


Safiah, Omar, Syukurriah, Idrus, N. (2011). Individualism-Collectivism and Its Influence on Positive Organizational Behavior: An Exploratory Study. American Scientific Publishers, Vol. 4,(2011), 400–407.

Search via ReFindit


Sitharam, S., & Hoque, M. (2016). Factors affecting the performance of small and medium enterprises in KwaZulu-Natal, South Africa. Problems and Perspectives in Management, 14(2). (2-2).2016.03 https://doi.org/10.21511/ppm.14

Search via ReFindit


Vilaplana, Alejandra, GENTNER, A., Favart, & Carole. (2019). The Role of Communication Tools in the Early-phase Design Process. International Journal of Affective Engineering, 18(2), 77–83. https://doi.org/10.5057/ijae.ijae-d-18-00014

Search via ReFindit


Waistell, J. (2011). Individualism and collectivism in business school pedagogy: A research agenda for internationalising the home management student. Higher Education Research and Development, 30(5), 595–607. https://doi.org/10.1080/07294360.2011.598450

Search via ReFindit


Wang, H., Han, X., & Li, J. (2021). Supervisor Narcissism and Employee Performance: A Moderated Mediation Model of Affective Organizational Commitment and Power Distance Orientation. Basic and Applied Social Psychology, 43(1), 14–29. https://doi.org/10.1080/01973533.2020.1810042

Search via ReFindit


Warter, I., Alexandru, U., Cuza, I., Warter, L., Alexandru, U., & Cuza, I. (2015). Intercultural Negotiation in Mergers and Acquisitions. the Integration of the Cultural Dimension Into the Negotiation Domain. July, 74–86. https://www.researchgate.net/publication/277919151

Search via ReFindit


Witte, E. H., Stanciu, A., & Boehnke, K. (2020). A New Empirical Approach to Intercultural Comparisons of Value Preferences Based on Schwartz's Theory. Frontiers in Psychology, 11(July), 1–18. https://doi.org/10.3389/fpsyg.2020.01723

Search via ReFindit


Xu, S., & Hao, A. (2021). Understanding the impact of national culture on firms' benefit-seeking behaviors in international B2B relationships: A conceptual model and research propositions. Journal of Business Research, 130(February), 27–37. https://doi.org/10.1016/j.jbusres.2021.02.062

Search via ReFindit


Yehia, Y. (2018). The Importance of Cultural Intelligence in International Business. Global Edge, 1–3. https://globaledge.msu.edu/blog/post/55562/the-importance-of-cultural-intelligence

Search via ReFindit