National culture and corporate innovation

Yangyang Chen, Edward J. Podolski and Madhu Veeraraghavan

Pacific-Basin Finance Journal, 2017, vol. 43, issue C, 173-187

Abstract: In this paper, we examine how cultural norms along the dimensions of individualism-collectivism and uncertainty-avoidance affect corporate innovation. Using a comprehensive sample across 41 countries, we find that firms located in countries with higher levels of individualism generate more and higher impact patents, and are more efficient in converting R&D into innovative output. In contrast, we find that firms located in countries with higher levels of uncertainty-avoidance produce fewer and less significant patents, and are less efficient with their R&D expenditure. Taken together, our findings show that national culture plays an important role in influencing corporate innovation around the world.

Keywords: National culture; Corporate innovation; Individualism; Uncertainty-avoidance; Innovation efficiency (search for similar items in EconPapers)
JEL-codes: G15 G31 O31 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (37)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:43:y:2017:i:c:p:173-187

DOI: 10.1016/j.pacfin.2017.04.006

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