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Individualism and Confucian Dynamism: A Note on Hofstede's Cultural Root to Economic Growth

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  • Ryh-song Yeh

    (The Chinese University)

  • John J Lawrence

    (University of Idaho)

Abstract

Hofstede and his associates have presented statistical evidence purporting to identify a link between national culture and economic growth. This note describes two problems with this line of research. First, two of the dimensions of culture used in this research, individualism and Confucian dynamism, are treated as if they are independent when in fact they appear to be highly interrelated. And second, culture is not a sufficient condition to explain economic growth and is related to other important factors that play a role in determining economic growth. The consequences of these problems on interpretation of the research findings are discussed and recommendations for future research directions are proposed.© 1995 JIBS. Journal of International Business Studies (1995) 26, 655–669

Suggested Citation

  • Ryh-song Yeh & John J Lawrence, 1995. "Individualism and Confucian Dynamism: A Note on Hofstede's Cultural Root to Economic Growth," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 26(3), pages 655-669, September.
    • Handle: RePEc:pal:jintbs:v:26:y:1995:i:3:p:655-669
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    Citations

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    Cited by:

    1. Ron Christian Antonczyk & Wolfgang Breuer & Astrid Juliane Salzmann, 2014. "Long-Term Orientation and Relationship Lending: A Cross-Cultural Study on the Effect of Time Preferences on the Choice of Corporate Debt," Management International Review, Springer, vol. 54(3), pages 381-415, June.
    2. David de Matías Batalla, 2014. "International Joint Venture characteristics in Spanish Companies: Uppsala model implications," Journal of Socioeconomic Engineering, Instituto Universitario de Análisis Económico y Social, issue 1, pages 21-32, June.
    3. Henry L. Tosi & Thomas Greckhamer, 2004. "Culture and CEO Compensation," Organization Science, INFORMS, vol. 15(6), pages 657-670, December.
    4. Schultz, Joseph Jr. & Lopez, Thomas J., 2001. "The impact of national influence on accounting estimates: Implications for international accounting standard-setters," The International Journal of Accounting, Elsevier, vol. 36(3), pages 271-290, September.
    5. Johnson, James P. & Lenartowicz, Tomasz, 1998. "Culture, freedom and economic growth: Do cultural values explain economic growth?," Journal of World Business, Elsevier, vol. 33(4), pages 332-356, January.
    6. Hasan Zahid & Badariah Haji Din, 2019. "Determinants of Intention to Adopt E-Government Services in Pakistan: An Imperative for Sustainable Development," Resources, MDPI, vol. 8(3), pages 1-25, July.
    7. J. Francois Outreville, 2014. "Risk Aversion, Risk Behavior, and Demand for Insurance: A Survey," Journal of Insurance Issues, Western Risk and Insurance Association, vol. 37(2), pages 158-186.
    8. Peng, Mike W. & Lu, Yuan & Shenkar, Oded & Wang, Denis Y. L., 2001. "Treasures in the China house: a review of management and organizational research on Greater China," Journal of Business Research, Elsevier, vol. 52(2), pages 95-110, May.
    9. Fey, Carl F., 2005. "Opening the black box of motivation: A cross-cultural comparison of Sweden and Russia," International Business Review, Elsevier, vol. 14(3), pages 345-367, June.
    10. Marcus Noland, 2003. "Religion, Culture, and Economic Performance," Working Paper Series WP03-8, Peterson Institute for International Economics.
    11. Archambault, Jeffrey J. & Archambault, Marie E., 2003. "A multinational test of determinants of corporate disclosure," The International Journal of Accounting, Elsevier, vol. 38(2), pages 173-194.
    12. Matteo Pedrini & Valentina Bramanti & Benedetto Cannatelli, 2016. "The impact of national culture and social capital on corporate social responsibility attitude among immigrants entrepreneurs," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 20(4), pages 759-787, December.
    13. Annett Reimer, 2005. "Die Bedeutung der Kulturtheorie von Geert Hofstede für das internationale Management," Wismar Discussion Papers 20/2005, Hochschule Wismar, Wismar Business School.
    14. Ratan J. S. Dheer, 2017. "Cross-national differences in entrepreneurial activity: role of culture and institutional factors," Small Business Economics, Springer, vol. 48(4), pages 813-842, April.
    15. Stylianos Syropoulos & Kyle Fiore Law & Liane Young, 2023. "National Differences in Age and Future-Oriented Indicators Relate to Environmental Performance," Sustainability, MDPI, vol. 16(1), pages 1-16, December.
    16. Archambault, Jeffrey J. & Archambault, Marie E., 1999. "A cross-national test of determinants of inflation accounting practices," The International Journal of Accounting, Elsevier, vol. 34(2), pages 189-207, June.
    17. David Ackerman & Jing Hu & Liyuan Wei, 2009. "Confucius, Cars, and Big Government: Impact of Government Involvement in Business on Consumer Perceptions Under Confucianism," Journal of Business Ethics, Springer, vol. 88(3), pages 473-482, October.
    18. Omar Khalil & Laila Marouf, 2017. "A Cultural Interpretation of Nations’ Readiness for Knowledge Economy," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 8(1), pages 97-126, March.

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