Economic Orientation and Firms Capabilities around the World: Does Individualism and Collectivism Values Matter?

19 Pages Posted: 4 Mar 2009

See all articles by Alfredo Martínez Bobillo

Alfredo Martínez Bobillo

University of Valladolid

Félix J. López-Iturriaga

Universidad de Valladolid - Department of Finance and Accounting; National Research University Higher School of Economics - International Laboratory of Intangible-driven Economy

Fernando Tejerina Gaite

University of Valladolid

Date Written: March 3, 2009

Abstract

Using data from 34 countries, this paper examines how each country's financial system and cultural ideology interact with globalization to impact the capability of firms to exploit external (i.e., capital and labor) and internal (i.e., research and development and intangible capital) advantages. Our results show that more culturally developed countries in terms of their financial, legal, and institutional framework are more prone to rely on internal competitive advantages. We also find that in the least technologically developed countries the acquisition of knowledge and the increase of transparency in financial markets are incentives for firms to rely more heavily on external competitive advantages.

Keywords: individualism and collectivism, national culture, globalization, firms' capabilities, financial system

JEL Classification: M21, F00, F23, J01

Suggested Citation

Martínez Bobillo, Alfredo and Lopez-Iturriaga, Felix Javier and Tejerina Gaite, Fernando, Economic Orientation and Firms Capabilities around the World: Does Individualism and Collectivism Values Matter? (March 3, 2009). Available at SSRN: https://ssrn.com/abstract=1352417 or http://dx.doi.org/10.2139/ssrn.1352417

Alfredo Martínez Bobillo (Contact Author)

University of Valladolid ( email )

8 C/Plaza de Santa Cruz
47002 Valladolid, Valladolid 47002
Spain

Felix Javier Lopez-Iturriaga

Universidad de Valladolid - Department of Finance and Accounting ( email )

Avda. Valle Esgueva 6
47011 Valladolid
Spain
+34 983 184 395 (Phone)
+34 983 183830 (Fax)

National Research University Higher School of Economics - International Laboratory of Intangible-driven Economy ( email )

Lebedeva,27
Perm, Perm 614070
Russia

Fernando Tejerina Gaite

University of Valladolid ( email )

8 C/Plaza de Santa Cruz
47002 Valladolid, Valladolid 47002
Spain

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