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National culture and corporate innovation

journal contribution
posted on 01.06.2017, 00:00 authored by Y Chen, Edward PodolskiEdward Podolski, M Veeraraghavan
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 uncertaintyavoidance
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.

History

Journal

Pacific-Basin finance journal

Volume

43

Pagination

173 - 187

Publisher

Elsevier

Location

Amsterdam, The Netherlands

ISSN

0927-538X

Language

eng

Publication classification

C1 Refereed article in a scholarly journal; C Journal article

Copyright notice

2017, Elsevier B.V.