Economic Behavior of Business Entities, Culture and Institutions: Specifics of their Interrelations in Conditions of Neo-Industrialization

Goal of the research is to develop an approach for a system-value study of endogenous links between the economic behavior of business entities and ethic-cultural values and institutions. Objectives are to develop an approach for a systematic and comprehensive interpretation of dynamic and endogenous relationships of behavioral, cultural-value and institutional variables; to clarify the specifics of the systemic relationships of culture and institutions; to determine the specifics of system-endogenous influence of ethic-cultural values and institutions on the economic efficiency of entrepreneurship; to study shifts in the distribution of personal incomes and contemporary problems caused by disfunctions related to culture, values and national specifics. Central hypothesis of the research deals with the assumption that it is impossible to study the systemic links in the economic behavior emerging between business entities, culture and institutions at the required level using traditional approaches, mechanisms and methods in the dramatically changing economic reality. Research methods: theoretical and methodological approach combining the methods of the interdisciplinary research theory: synergetic, complex systems, social constructivism, metaethics, multicultural modernization and structurally active methodology, as well as methods of theoretical and empirical research. The institutional basis of the empirical part of the analysis was comprised by the statistical data of many international organizations and the main findings of cross-cultural research on this topic published in scientific journals over 2001-2016. The authors developed a theoretical and methodological approach that allows a system-holistic study of the endogenous links between behavioral, cultural-value and institutional variables, combining the individualistic and holistic methodology, as well as positive and normative approaches. The article proposes an approach for systematic study of endogenous links between the efficiency of business entities’ economic activity and cultural-value variables. Using the example of the US economy, it was proved that the dis-functionality of the value-normative and institutional systems is the fundamental factor of the abnormal inequality of personal incomes and the problems caused by it. Provisions and conclusions presented in the article enable a spacious approach to the problem and a deeper theoretical understanding of the relationship between culture and institutions, the composition and functions of the main structure-forming elements of the economic system and the national model, the role of cultural-value and institutional variables in economic efficiency of business entities. The main provisions and conclusions of the paper can be used for further theoretical and empirical studies on this issue and in practice to develop strategic approaches and priorities that can increase the effectiveness of economic policy and business. Relevance of research stems from the rise of a qualitatively new wave of global changes in the national economy caused by a shift in the nature and mechanisms of economic activities of business entities, the growing role of knowledge and innovation, culture and institutions in economic development; as well as the lack of appropriate theoretical and methodological approaches.