Pakistan Science Abstracts
Article details & metrics
No Detail Found!!
The Moderating Effect of Cultural Influence on Governance and the Economy
Author(s):
1. Shahrin Saaid Shaharuddin: Faculty of Business and Economics, University of Malaya, Kuala Lumpur, Malaysia
2. Azni Zarina Taha: Faculty of Business and Economics, University of Malaya, Kuala Lumpur, Malaysia
3. Mozard Mohtarc: Faculty of Business and Economics, University of Malaya, Kuala Lumpur, Malaysia
4. Yeney Widya Prihatiningtias: Faculty of Economics and Business, Brawijaya University,Jawa Timur,IndonesiaLowy institute,Jawa Timur,Indonesia
5. Hanafi Husin: Faculty of Arts and Social Sciences, University of Malaya,Kuala Lumpur,MalaysiaLowy institute,Kuala Lumpur,Malaysia
Abstract:
This study aims to investigate the moderating effects of cultural influence on the relationship between governance indicators and the economic capability of countries by using cultural influence factors developed by the Lowy Institute and a newly developed governance index using principal component analysis based on World Governance Indicators. The cultural influence indicators that were used in the study include a composite score for cultural influence as well as three cultural influence sub-measures. The cultural influence factors and sub-measures were extracted from the Lowy Institute Asia Power Index whilst World Governance Indicators submeasures were taken from the World Bank database based on annual data from 2018 to 2022. This study attempts to contribute to the existing body of literature by analyzing the moderating effect of cultural influence on the relationship between governance and the economy using cultural influence factors developed by the Lowy Institute and the newly created governance index. Results from the fixed-effects and random-effects regression suggest that cultural influence has a positive moderating effect on the relationship between governance and the economy. Also, the complex and nuanced effects of cultural influence sub-measures on the relationship between governance and the economy were evidenced by positive effects and supported previous findings by Khan (2010), Norris and Inglehart (2011), and others. The results from the study indicate that cultural influence has important implications for strategies for researchers, policymakers, and practitioners. and highlights the importance of managing information flows when developing policies and strategies.
Page(s): 842-869
Published: Journal: Pakistan Journal of Life and Social Sciences, Volume: 22, Issue: 1, Year: 2024
Keywords:
Cultural influence Governance indicators Economic capability Lowy institute Worldwide indicators
References:
[1] Aaronson SA,Leblond P .2018 .Another digital divide: The rise of data realms and its implications for the WTO. Journal of International Economic Law, 21(2) : 245-272.
[2] Scholte Aart,J; Aart .2010 .Governing a more global world. Corporate Governance: The international journal of business in society, 10(4) : 459-474.
[3] Agostino M,Nifo A,Trivieri F,Vecchione G .2019 .Rule of law and regulatory quality as drivers of entrepreneurship. Regional Studies, 54(6) : 814-826.
[4] Albaity M,Saadaoui Mallek R,Al-Tamimi H,Molyneux P .2023 .Do trust and country governance affect credit growth in GCC countries. -2021-0293, 16(3) : 516-538.
[5] Amran A,Haniffa R .2011 .Evidence in development of sustainability reporting: a case of a developing country. Business Strategy and the Environment, 20(3) : 141-156.
[6] Arora S,Stirling A .2023 .Colonial modernity and sustainability transitions: A conceptualization in six dimensions. Environmental Innovation and Societal Transitions, 48 : .
[7] Awaworyi Churchill S; .2017 .Fractionalization, entrepreneurship, and the institutional environment for entrepreneurship. Small Business Economics, 48(3) : 577-597.
[8] Barkema H,Vermeulen F .1997 .What differences in the cultural backgrounds of partners are detrimental to international joint ventures. Journal of International Business Studies, 28 : 845-864.
[9] Başkent EZ .2022 .Reflections of stakeholders on the forest resources governance with power analysis in Turkey. Land Use Policy, 115 : .
[10] Beyene A; .2022 .Governance quality and economic growth in Sub-Saharan Africa: the dynamic panel model. Journal of Economic and Administrative Sciences. doi: 10, : .
[11] Chakraborty S,Thompson J,Yehoue E .2015 .Culture in development. The World Bank Economic Review, 29(suppl) : S238-S246.
[12] Charron N,Dijkstra L,Lapuente V; .2013 .Regional governance matters: Quality of government within European Union member states. Regional studies, 48(1) : 68-90.
[13] Eakin H,Keele S,Lueck V; .2022 .Uncomfortable knowledge: mechanisms of urban development in adaptation governance. World Development, 159 : .
[14] Easterly W,Levine R .1997 .Africa's growth tragedy: policies and ethnic divisions. The quarterly journal of economics, : 1203-1250.
[15] Easterly W; .2001 .The middle-class consensus and economic development. Journal of economic growth, 6(4) : 317-335.
[16] Entman RM .2003 .Projections of power: Framing news, public opinion, and US foreign policy. , : .
[17] Evan T,Holý V; .2023 .Cultural diversity and its impact on governance. Socio-Economic Planning Sciences, 89 : .
[18] Farazmand A; .2012 .Sound Governance: Engaging Citizens through Collaborative Organizations. Public Organizational Review, 12 : 223-241.
[19] Fukuyama F; .2013 .. , 26(3) : 347-368.
[20] Gholipour Fereidouni H,Ariffin Masron T,Ekhtiari Amiri R; .2011 .The effects of FDI on voice and accountability in the MENA region. International Journal of Social Economics, 38(9) : 802-815.
[21] Gil J; .2015 .China's cultural projection: A discussion of the Confucius Institutes. China: An International Journal, 13(1) : 200-226.
[22] Griffin K; .2003 .Economic globalization and institutions of global governance. Development and Change, 00329(5) : 7660-808.
[23] Grossi E,Sacco P,Blessi G .2023 .Cultural, creative, and complex: A computational foundation of culture-driven urban governance. Cities, 140 : .
[24] Handley SM,Angst CM .2015 .The impact of culture on the relationship between governance and opportunism in outsourcing relationships. Strategic Management Journal, 36(9) : 1412-1434.
[25] Harun M,Hussainey K,Kharuddin K,Farooque O .2020 .CSR disclosure, corporate governance, and firm value: A study on GCC Islamic Banks. International Journal of Accounting & Information Management, 28(4) : 607-638.
[26] Hofstede G,Neuijen B,Ohayv DD,Sanders G .1990 .Measuring organizational cultures: A qualitative and quantitative study across twenty cases. Administrative Science Quarterly, : 286-316.
[27] Hofstede G;,G. G; .2001 .Culture's consequences: Comparing values, behaviors, institutions, and organizations across nations (2nd ed. , : .
[28] Hofstede G; .2001 .Culture's consequences: Comparing values, behaviors, institutions, and organizations across nations. Sage publications. , : 426365.
[29] Hu H,Yu G,Xiong X,Guo L,Huang J .2022 .Cultural diversity and innovation: an empirical study from dialect. Technology in Society, 69 : .
[30] Jaba E,Robu IB .2012 .Obtaining Audit Evidence for Testing the “Going Concern” Assumption Using Advanced Statistical Methods to Analyze the Influence on Overall Borrowing Rate. Audit Financiar, 9(2) : 37-46.
[31] Jam F. A. .2019 .Crypto currency‒a new phenomenon in monetary circulation. Central Asian Journal, : .
[32] . .. of Social Sciences and Humanities, 4(1) : 39-46.
[33] Jam F. A.,Singh S. K. G.,Ng B.,Aziz N. .2016 .Effects of Uncertainty Avoidance on Leadership Styles in Malaysian Culture. International Journal of Advance Business and Economics Research, 14(8) : 7029-7045.
[34] Jitmaneeroj B; .2024 .Value relevance of multifaceted corporate social performance: how do countryspecific factors matter? Humanities and. Social Sciences Communications, 11(1) : 1-20.
[35] Kalu K; .2019 .The impact of ICT-diffusion on government effectiveness: what role for cultural practices. -2018-0087, 22(2) : 123-154.
[36] Kanval N.,Ihsan H.,Irum S.,Ambreen I. .2024 .Human Capital Formation, Foreign Direct Investment Inflows, and Economic Growth: A Way Forward to Achieve Sustainable Development. Journal of Management Practices, Humanities and Social Sciences, 8(3) : 48-61.
[37] Khan M; .2010 .Political settlements and the governance of growth-enhancing institutions. , : .
[38] Kuzenbayev N,Pelizzo R .2023 .Political Stability, Confidence in the Future, and Values. Social Sciences, 12(2) : .
[39] Lake DA .2014 .Domination, Authority, and the Forms of Chinese Power. Chinese Journal of International Politics, 10 : 10-382.
[40] Lee R; .2023 .Each to his ability: Looking at social changes and moral economy from the revitalization of the Houxi Xiacheng Chenghuang Temple. Taiwan Journal of East Asian Studies, 20(2) : 161-187.
[41] Li S,Leszczyc P,Qiu C; .2023 .International retailer performance: Disentangling the interplay between rule of law and culture. Journal of Retailing, 01(2) : 193-209.
[42] Lian B,Oneal J .1960 .Cultural diversity and economic development: a cross-national study of 98 countries,. Economic Development and Cultural Change, 46(1) : 61-77.
[43] Licht A,Goldschmidt C,Schwartz S; .2007 .Culture rules: The foundations of the rule of law and other norms of governance. Journal of Comparative Economics, 09(4) : 659-688.
[44] Lin Y,Lu Z,Fan D,Zheng Z .2016 .The bright and dark sides of ESG during the COVID-19 pandemic: evidence from China hospitality industry. -2022-1384, 1184894(4) : 1393-1417.
[45] Liu H,Van Dongen E; .2016 .China's Diaspora Policies as a New Mode of Transnational Governance. Journal of Contemporary China, 25(102) : 805-821.
[46] Liu Q,Wan H,Yu H; .2023 .Digital transformation and corporate performance: The moderating role of corporate culture. Academic Journal of Management and Social Sciences, 3(1) : 9564-93.
[47] López-Aranguren J-L .2023 .. Japan's Science and Technology Diplomacy: Society 5.0 and its International Projection. Communication & Society, 36(2) : 225-239.
[48] Mahran H; .2023 .The impact of governance on economic growth: a spatial econometric approach. - 2021-0058, 8(1) : 37-53.
[49] Martini M,Moscovitz H,Fernández Ulgade R,Hansen M,Hughson T,Marfán J,Tozan O .2024 .In search of a global community: a multivocal critique of UNESCO's education commons discourse. Journal of Education Policy, : 1-17.
[50] Matsuo H;,Y. H; .2005 .The Role of Law in Development: Past, Present. , : .
[51] McCrae R,Terracciano A,Realo A,Allik J .2008 .Interpreting GLOBE Societal Practices Scales. Journal of Cross-Cultural Psychology, 39 : 805-810.
[52] Mertzanis C,Basuony MA .2018 .Social institutions, corporate governance and firm performance in the MENA region. , 12 : 75-96.
[53] Mill J;,D. S. J; .2015 .Wealth and poverty of nations. Hachette UK., : .
[54] Min H,Lee CC,Joo SJ .2022 .Assessing the efficiency of the COVID-19 control measures and public health policy in OECD countries from cultural perspectives. -2021-0241, 29(6) : 1781-1796.
[55] Neuwirth RJ .2024 .The global institutional governance of AI: A four-dimensional perspective. - 0004, : .
[56] Noorderhaven NG,Tidjani B .2001 .Culture, governance, and economic performance: An explorative study with a special focus on Africa. International Journal of Cross-Cultural Management, 1(1) : 31-52.
[57] Norris P,Inglehart R,Worldwide Politics .2011 .. , : 98.
[58] O'brien R .2000 .Contesting global governance: Multilateral economic institutions and global social movements. , 71 : .
[59] Ogbuabor J,Orji A,Manasseh C,Anthony-Orji O .2020 .Institutional quality and growth in West Africa: what happened after the Great Recession?. International Advances in Economic Research, 26(4) : 343-361.
[60] Ottaviano G,Peri G .2006 .The economic value of cultural diversity: evidence from US cities. Journal of Economic Geography, 6(1) : 9-44.
[61] Pinelli M,Debellis F,De Massis A .2024 .Long-term orientation, family-intensive governance arrangements, and firm performance: An institutional economics perspective. Small Business Economics, : 1-24.
[62] Popiel P .2022 .Protecting 'competition, not competitors': antitrust discourse and the AT&T-Time Warner merger. Critical Discourse Studies, 20(3) : 256-268.
[63] Rejchrt P,Higgs M; .2015 .When in Rome: how non-domestic companies listed in the UK may not comply with accepted norms and principles of good corporate governance. Does home market culture explain these corporate behaviors and attitudes to compliance?. Journal of Business Ethics, 129 : 131-159.
[64] Sacristán-Navarro M,Cabeza-García L,Basco R,Gomez-Anson S .2021 .It's all about culture! Institutional context and ownership concentration across Europe. European Management Journal, 06(2) : 194-207.
[65] Schiller HI,Domination Cultural .1976 .. , : .
[66] Sheedy E,Griffin B; .2018 .Risk governance, structures, culture, and behavior: A view from the inside. Corporate Governance: An International Review, 26(1) : 4-22.
[67] Shore C; .2006 .'In uno plures'(?) EU Cultural Policy and the Governance of Europe. Cultural Analysis, 5(5) : 7-26.
[68] Simplice A; .2014 .Fighting African corruption when existing corruption-control levels matter in a dynamic cultural setting. -2013-0117, 41(10) : 906-922.
[69] Singh B; .2022 .Does governance matter? Evidence from BRICS. Global Business Review, 23(2) : 408-425.
[70] Sun Y,Wang T,Gu X .2019 .A sustainable development perspective on cooperative culture, knowledge flow, and innovation network governance performance. Sustainability, 6126(21) : .
[71] Tadesse M,Erdem E .2023 .Postcapitalist Imaginaries of Finance: A Diverse-Economies Perspective on Equubs within the Ethiopian Diaspora in Germany. Rethinking Marxism, 35(2) : 265-284.
[72] Thomas N; .1994 .Colonialism's culture: anthropology, travel, and government. , : 451.
[73] Tschirhart C,Mistry J,Berardi A,Bignante E,Simpson M,Haynes L,Benjamin R,Albert G,Xavier R,Robertson B,Davis O,Verwer C,Deville G,Jafferally D; .2016 .Learning from one another: evaluating the impact of horizontal knowledge exchange for environmental management and governance. Ecology and Society, 21(2) : .
[74] Webster F; .2014 .Theories of the information society. , : .
[75] Williams L,McGuire S .2010 .Economic creativity and innovation implementation: the entrepreneurial drivers of growth? Evidence from 63 countries. Small Business Economics, 34 : 391-412.
[76] Yan K,Yang Y .2024 .Rethinking Two-Way Socialisation: Cultural Governance on Chinese Social Media Platforms. Journal of Current Chinese Affairs, 18681026241240074 : .
[77] Zhan S,Bendapudi N,Hong Y .2015 .Re‐examining diversity as a double‐edged sword for the innovation process. Journal of Organizational Behavior, 36(7) : 1026-1049.
[78] Zhang D,Zhang Z,Ji Q,Lucey B,Liu J .2021 .Board characteristics, external governance and the use of renewable energy: International evidence. Journal of International Financial Markets, Institutions & Money, 72(1) : .
[79] Zhang H,Lai J,Jie S; .2024 .Quantity and quality: The impact of environmental, social, and governance (ESG) performance on corporate green innovation. Journal of Environmental Management, 354 : .
[80] Zhu J,Sun Y .2022 .Network power and institutional ambiguity: explaining China's reform path toward US-dominated international institutions. China International Strategy Review, 4(2) : 367-385.
[81] Zimmer A,Toepler S; .1999 .The subsidized muse: government and the arts in Western Europe and the United States. Journal of Cultural Economics, 23 : 33-49.
Citations
Citations are not available for this document.
0

Citations

0

Downloads

1

Views