National culture, institutional quality and firm R&D investment: evidence from the Asia-Pacific IT industry

Dalwai, T ORCID: https://orcid.org/0000-0001-5754-5384, Scafarto, V and Mohammadi, SS, 2025. National culture, institutional quality and firm R&D investment: evidence from the Asia-Pacific IT industry. Eurasian Business Review. ISSN 1309-4297

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Abstract

This paper investigates the effects of national culture and formal institutions on firm R&D investment from an institution-based perspective. Specifically, we investigate whether national culture affects the extent to which firms rely on the quality of formal institutions in making their R&D investment decisions. Using a panel of IT firms from the Asia-Pacific region, we find evidence that (1) the quality of formal institutions stimulates firm R&D after controlling for other potential determinants of R&D at firm and country level, and (2) this positive association is more pronounced for firms embedded in short-term oriented and individualistic cultures. This suggests that the impact of formal institutions on firm-level R&D may be contingent on the configuration of informal institutions in the firm’s environment. Regarding practical implications, policymakers are made aware that national culture may affect the extent to which firms respond to institutional reforms aimed at stimulating R&D investment.

Item Type:	Journal article
Publication Title:	Eurasian Business Review
Creators:	Dalwai, T., Scafarto, V. and Mohammadi, S.S.
Publisher:	Springer
Date:	4 February 2025
ISSN:	1309-4297
Identifiers:	Number Type 10.1007/s40821-024-00287-2 DOI 2373694 Other
Rights:	This version of the article has been accepted for publication, after peer review (when applicable) and is subject to Springer Nature’s AM terms of use, but is not the Version of Record and does not reflect post-acceptance improvements, or any corrections. The Version of Record is available online at: https://doi.org/10.1007/s40821-024-00287-2
Divisions:	Schools > Nottingham Business School
Record created by:	Jonathan Gallacher
Date Added:	12 Feb 2025 10:46
Last Modified:	12 Feb 2025 10:46
URI:	https://irep.ntu.ac.uk/id/eprint/53032

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