| This study was conducted to investigate the possible relationship between culture, decision making, and national economic outcomes. Pattern analysis was employed to examine potential linkages between the 5 Hofstede cultural attributes and national wealth, expressed as gross domestic product/per capita and foreign direct investment activity in each of the 20 nations forming the sample studied. Patterns existed showing linkages between 4 of the 5 Hofstede cultural attributes and both national wealth and foreign direct investment activity. The skew for the ton performing nations was toward attributes of low power distance, high uncertainty avoidance, individualism, and short term orientation. The fifth attribute, masculinity-femininity, seemed inconsequential in linkage to either national outcome, GDP/PC, or FDI. Examining the relationship of culture and the Porter diamond theory of national competitive advantage suggests that the diamond theory might be insufficiently developed in the area of culture, particularly the strength of its relationship to national economic outcomes. A longitudinal study would ascertain the validity of these relationships across a wide variety of international businesses. |
