Open Journal Systems

The Role of National Culture in National Innovative Capacity

Sofik Handoyo


Abstract. Purpose of the study is to examine the relationship between national culture and the capacity of the nation to innovate. The motivation of study was driven by the differences national innovative capacity in the open access knowledge era. The total sample was involved in this study is 77 countries. Hofstede’s national culture Index and Global Competitiveness Index were used to measure national innovative capacity variable and national culture variable respectively. The study involved two control variables namely categorization of national income (low, upper low, upper medium and high) and the Human Development Index. Bivariate correlation analysis and multiple regression analysis were applied. The findings indicated that national culture classification namely individualism, long-term orientation, and indulgence were found positively and significantly related to national innovative capacity. Power distance and uncertainty avoidance national culture classification showed a negative and significant relationship with national innovative capacity. Masculinity national culture was found no relationship with national innovative capacity. Human Development Index as a control variable showed a positive and significant association with national innovative capacity. There is no indication association between income categorization and national innovative capacity

Keywords:  National culture, innovative capacity, global competitiveness, power distance, uncertainty avoidance. 



Competitiveness, Innovative Capacity, Innovation, National Culture, Performance

Full Text:



AndrijauskienÄ—, M., & DumÄiuvienÄ—, D. (2017, October). Hofstede’s Cultural Dimensions and National Innovation Level. In DIEM: Dubrovnik International Economic Meeting (Vol. 3, No. 1, pp. 189-205). SveuÄiliÅ¡te u Dubrovniku.

Anderson, N., De Dreu, C. K., & Nijstad, B. A. (2004). The routinization of innovation research: A constructively critical review of the stateâ€ofâ€theâ€science. Journal of organizational Behavior, 25(2), 147-173.

Adler, N. J. (2002). International Dimensions of Organizational Behavior (4th ed.). Cincinnati, OH: South-Western.

Belitz, H., Clemens, M., Schmidt-Ehmcke, J., Schneider, S., & Werwatz, A. (2008). Deficits in education endanger germany's innovative capacity. Weekly Report, 4(14), 86-93.

Davis, J. H., & Ruhe, J. A. (2003). Perceptions of country corruption: Antecedents and outcomes. Journal of Business Ethics, 43(4), 275-288.

Furman, J. L., Porter, M. E., & Stern, S. (2002). The determinants of national innovative capacity. Research policy, 31(6), 899-933.

Harrison, L.E. & Huntington, S.P. (2000). Culture matters: How values shape human progress. New York: Basic Books.

Hayton, J. C., George, G., & Zahra, S. A. (2002). National culture and entrepreneurship: A review of behavioral research. Entrepreneurship theory and practice, 26(4), 33-52.

House, R. J., Hanges, P. J., Javidan, M., Dorfman, P. W., & Gupta, V. (Eds.). (2004). Culture, leadership, and organizations: The GLOBE study of 62 societies. Thousand Oaks: Sage publications.

Hofstede, G., & Hofstede, G. J. (2005). Cultures and Organizations. Software for the Mind 2nd ed. New York: McGraw-Hill.

Hofstede, G. (2011).

Hung, S. C. (2004). Explaining the process of innovation: The dynamic reconciliation of action and structure. Human Relations, 57(11), 1479-1497.

Hu, M. C., & Mathews, J. A. (2008). China's national innovative capacity. Research policy, 37(9), 1465-1479.

Jang, Y., Ko, Y., & Kim, S. Y. (2016). Cultural correlates of national innovative capacity: a cross-national analysis of national culture and innovation rates. Journal of Open Innovation: Technology, Market, and Complexity, 2(1), 23.

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

Khan, R., & Cox, P. (2017). Country culture and national innovation. Archives of Business Research, 5(2).

Kovacic, Z. J. (2005). The impact of national culture on worldwide eGovernment readiness. Informing Science: The International Journal of an Emerging Transdiscipline, 8, 143-159.

Mueller, S. L., & Thomas, A. S. (2001). Culture and entrepreneurial potential: A nine country study of locus of control and innovativeness. Journal of business venturing, 16(1), 51-75.

Mihaela, H., Claudia, O., & Lucian, B. (2011). Culture and national competitiveness. African Journal of Business Management, 5(8), 3056-3062.

Moon, H. C., & Choi, E. K. (2001). Cultural impact on national competitiveness. Journal of International and Area Studies, 21-36.

Natario, M. M., Couto, J. P. A., Tiago, M. T. B., & Braga, A. M. (2011). Evaluating the determinants of national innovative capacity among European countries. Global Journal of Management and Business Research (GJMBR), 11(11)), 67-78.

Schwab, K., & Porter, M. (2008). The global competitiveness report 2008–2009. World Economic Forum.

Rosselet, S. (2014). Can a Nation’s Culture Drive Competitiveness?

Ryu, S., & Moon, C. W. (2009). Long-term orientation as a determinant of relationship quality between channel members. International Business and Economics Research Journal, 8(11), 1-10.

Syed, H., & Malik, A. N. (2014). Comparative study of effect of culture on technology adoption in Pakistan and USA. The Business & Management Review, 5(1), 42.

Stern, S., Porter, M. E., & Furman, J. L. (2000). The determinants of national innovative capacity (No. w7876). National bureau of economic research.

Uhlaner, L., & Thurik, R. (2007). Postmaterialism influencing total entrepreneurial activity across nations. Journal of Evolutionary Economics, 17(2), 161-185.

Van Everdingen, Y. M., & Waarts, E. (2003). The effect of national culture on the adoption of innovations. Marketing Letters, 14(3), 217-232.

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(6), 601-610.

Wursten, H., & Jacobs, C. (2013). The impact of culture on education. Can we introduce best practices in education across countries. ITIM International, 1, 1-28.

Westwood, R., & Low, D. R. (2003). The multicultural muse: Culture, creativity and innovation. International journal of cross cultural management, 3(2), 235-259.

Williams, L. K., & McGuire, S. J. (2010). Economic creativity and innovation implementation: the entrepreneurial drivers of growth? Evidence from 63 countries. Small Business Economics, 34(4), 391-412.

World Economic Forum. (2014). Global Competitiveness Report 2015-2015.



  • There are currently no refbacks.