Hofstede-GLOBE inspired cultural dimensions: a review and application in international business research and cross-cultural strategy

Abstract

Differences in informal and or cultural environments of host and home countries influence the choices and international strategies of multinational enterprises (MNEs) significantly. The Hofstede and Global Leadership and Organization Behavior Effectiveness (GLOBE) cultural dimensions have undoubtedly been two of the most widely applied indices in measuring and operationalizing differences in institutional environments of countries in international business research. The objective of this article is twofold; to offer a detailed review and analysis of the Hofstede-GLOBE cultural dimensions as applied in international business research and to offer suggestions towards their improvement and enhancement in works of similar nature. To help improve knowledge in this area our methodology involves a comprehensive review of the empirical studies on the use of Hofstede-GLOBE cultural dimensions in international business research. This study will help researchers who wish to conduct cross-cultural research in international business to be able to overcome some of the perceived biases and flaws embedded in the two studies. The research is expected to contribute to the institution-based view of international business (IB) strategy and cross-cultural studies.