Impact of Hofstede’s cultural dimensions on insurance demand

Norbert Duczkowski; Adam Śliwiński; Lubomir Słowik

doi:https://doi.org/10.59139/ws.2024.03.3

Norbert Duczkowski Szkoła Doktorska, Szkoła Główna Handlowa w Warszawie, Polska / Doctoral School, SGH Warsaw School of Economics, Poland ORCID: https://orcid.org/0000-0003-4543-2678 , Adam Śliwiński Szkoła Główna Handlowa w Warszawie, Kolegium Zarządzania i Finansów, Instytut Ryzyka i Rynków Finansowych, Polska / SGH Warsaw School of Economics, Collegium of Management and Finance, Institute of Risk and Financial Markets, Poland ORCID: https://orcid.org/0000-0002-7817-0101 , Lubomir Słowik Szkoła Doktorska, Uniwersytet Jagielloński w Krakowie, Polska / Doctoral School, Jagiellonian University in Kraków, Poland ORCID: https://orcid.org/0000-0002-9817-9576 Wiadomości Statystyczne. The Polish Statistician, vol. 69, 2024, 3, s. 38-68 Opublikowano online: 2 kwietnia 2024 DOI https://doi.org/10.59139/ws.2024.03.3 Sposób cytowania: Duczkowski, N., Śliwiński, A., Słowik, L. (2024). Impact of Hofstede’s cultural dimensions on insurance demand. Wiadomości Statystyczne. The Polish Statistician, 69(3), 38–68. https://doi.org/10.59139/ws.2024.03.3.

590 Wyświetlenia 71 Pobrania

ARTYKUŁ

(Angielski) PDF

STRESZCZENIE

Factors determining the demand for different types of insurance and consumer behaviours have been the subject of many studies. The analysed factors included cultural dimensions, i.e. certain aspects of culture that could be measured, which allows determining the position of a given culture in relation to others. However, the research results were very diverse, which motivated the authors to conduct their own research. The aim of the study discussed in the article was to verify the relationship between Hofstede’s cultural dimensions and insurance demand in selected European countries. It covered various types of insurance: life insurance, property and casualty insurance, motor insurance, general liability insurance and health insurance, as well as all types of insurance in total. The study used secondary data relating to 27 countries and the years 2004–2020 presented on the Insurance Europe and Geert Hofstede websites. Six Hofstede’s cultural dimension indices: the power distance index, individualism vs. collectivism, masculinity vs. femininity, the uncertainty avoidance index, longterm normative orientation vs. short-term normative orientation and indulgence vs. restraint, as well as insurance density (total premiums per inhabitant) were used as variables in the models. The research confirmed the lack of or a very weak relationship between most Hofstede’s cultural dimensions and the demand for insurance, except the indulgence dimension. The relationship between this factor and insurance demand proved significant, which is important not only from a methodological point of view (little interest devoted to this indicator in the literature), but also from a business perspective (e.g. from a marketing communication perspective).

SŁOWA KLUCZOWE

insurance, demand, cultural dimensions, Geert Hofstede

JEL

G22, G40

BIBLIOGRAFIA

Anand, J., & Delios, A. (1997). Location specificity and the transferability of downstream assets to foreign subsidiaries. Journal of International Business Studies, 28(3), 579–603. https://doi.org/10.1057/palgrave.jibs.8490112.

Andrianova, O. A. (2022). Contextual Component in Cross-Cultural Business Interaction With Asian Partners. Professional Discourse & Communication, 4(4), 86–94. https://doi.org/10.24833/2687-0126-2022-4-4-86-94.

Arora, A., & Fosfuri, A. (2000). Wholly Owned Subsidiary Versus Technology Licensing in the Worldwide Chemical Industry. Journal of International Business Studies, 31(4), 555–572. https://doi.org/10.1057/palgrave.jibs.8490922.

Barkema, H. G., Bell, J. H. J., & Pennings, J. M. (1996). Foreign entry, cultural barriers, and learning. Strategic Management Journal, 17(2), 151–166. https://doi.org/10.1002/(SICI)1097-0266(199602)17:2%3C151::AID-SMJ799%3E3.0.CO;2-Z.

Barkema, H. G., Shenkar, O., Vermeulen, F., & Bell, J. H. J. (1997). Working abroad, working with others: how firms learn to operate international joint ventures. Academy of Management Journal, 40(2), 426–442. https://doi.org/10.5465/256889.

Barkema, H. G., & Vermeulen, F. (1997). What differences in the cultural backgrounds of partners are detrimental for international joint ventures?. Journal of International Business Studies, 28(4), 845–864. https://doi.org/10.1057/palgrave.jibs.8490122.

Barkema, H. G., & Vermeulen, F. (1998). International expansion through start-up or acquisition: a learning perspective. Academy of Management Journal, 41(1), 7–26. https://doi.org/10.5465/256894.

Benito, G. R. G., & Gripsrud, G. (1992). The expansion of foreign direct investments: discrete rational location choices or a cultural learning process?. Journal of International Business Studies, 23(3), 461–476. https://doi.org/10.1057/palgrave.jibs.8490275.

Beugelsdijk, S., Kostova, T., & Roth, K. (2017). An overview of Hofstede-inspired country-level culture research in international business since 2006. Journal of International Business Studies, 48(1), 30–47. https://doi.org/10.1057/s41267-016-0038-8.

Bond, M. H. (1991). Beyond the Chinese face: Insights from psychology. Oxford University Press.

Brouthers, K. D., & Brouthers, L. E. (2000). Acquisition or Greenfield start-up? Institutional, cultural, and transaction cost influences. Strategic Management Journal, 21(1), 89–97. https://doi.org/10.1002/(SICI)1097-0266(200001)21:1%3C89::AID-SMJ85%3E3.0.CO;2-8.

Brouthers, K. D., & Brouthers, L. E. (2001). Explaining the National Cultural Distance Paradox. Journal of International Business Studies, 32(1), 177–189. https://doi.org/10.1057/palgrave.jibs.8490944.

Chang, S. J., & Rosenzweig, P. M. (2001). The choice of entry mode in sequential foreign direct investment. Strategic Management Journal, 22(8), 747–776. https://doi.org/10.1002/smj.168.

Chui, A. C. W., & Kwok, C. C. Y. (2009). Cultural Practices and Life Insurance Consumption: An International Analysis using GLOBE Scores. Journal of Multinational Financial Management, 19(4), 273–290. https://doi.org/10.1016/j.mulfin.2009.02.001.

Datta, D. K., & Puia, G. (1995). Cross-border Acquisitions: An Examination of the Influence of Relatedness and Cultural Fit on Shareholder Value Creation in US Acquiring Firms. Management International Review, 35(4), 337–359.

Diener, E., & Diener, M. (1995). Cross-Cultural Correlates of Life Satisfaction and Self-Esteem. Journal of Personality and Social Psychology, 68(4), 653–663. https://doi.org/10.1037/0022-3514.68.4.653.

Diener, E., Diener, M., & Diener, C. (1995). Factors Predicting the Subjective Well-Being of Nations. Journal of Personality and Social Psychology, 69(5), 851–864. https://doi.org/10.1037/0022-3514.69.5.851.

Diener, E., Gohm, C. L., Suh, E., & Oishi, S. (2000). Similarity of the relations between marital status and subjective well-being across cultures. Journal of Cross-Cultural Psychology, 31(4), 419–436. https://doi.org/10.1177/0022022100031004001.

Duczkowski, N. (2022). Application of reduced social welfare functions for estimating household insurance expenditures in Poland. Wiadomości Ubezpieczeniowe, 1, 73–94. https://doi.org/10.33995/wu2022.1.5.

Erramilli, M. K. (1991). The experience factor in foreign market entry behavior of service firms. Journal of International Business Studies, 22(3), 479–501. https://doi.org/10.1057/palgrave.jibs.8490312.

Erramilli, M. K. (1996). Nationality and subsidiary ownership patterns in multinational corporations. Journal of International Business Studies, 27(2), 225–248. https://doi.org/10.1057/palgrave.jibs.8490133.

Erramilli, M. K., Agarwal, S., & Dev, C. S. (2002). Choice Between Non-Equity Entry Modes: An Organizational Capability Perspective. Journal of International Business Studies, 33(2), 223–242. https://doi.org/10.1057/palgrave.jibs.8491014.

Erramilli, M. K., Agarwal, S., & Kim, S. S. (1997). Are firm-specific advantages location-specific too?. Journal of International Business Studies, 28(4), 735–757. https://doi.org/10.1057/palgrave.jibs.8490117.

Esho, N., Kirievsky, A., Ward, D. & Zurbruegg, R. (2004). Law and the Determinants of Property- Casualty Insurance. The Journal of Risk and Insurance, 71(2), 265–283. https://doi.org/10.1111/j.0022-4367.2004.00089.x.

Firican, D. A. (2022). The Influence of Hofstede’s Cultural Dimensions on Attitude Towards Change and Innovation in Oganizations. Proceedings of the International Conference on Business Excellence, 16(1), 509–518. https://doi.org/10.2478/picbe-2022-0049.

Franke, R. H., Hofstede, G., & Bond, M. H. (1991). Cultural roots of economic performance: a research note. Strategic Management Journal, 12(S1), 165–173. https://doi.org/10.1002/smj.4250120912.

Geert Hofstede. (n.d.). Dimension data matrix [Data set]. Retrieved January 25, 2023, from https://geerthofstede.com/research-and-vsm/dimension-data-matrix/.

Glaister, K. W., & Buckley, P. J. (1999). Performance Relationships in UK International Alliances. Management International Review, 39(2), 123–147.

Gómez-Mejia, L. R., & Palich, L. E. (1997). Cultural diversity and the performance of multinational firms. Journal of International Business Studies, 28(2), 309–335. https://doi.org/10.1057/palgrave.jibs.8490103.

Gong, Y., Shenkar, O., Luo, Y., & Nyaw, M. (2001). Role conflict and ambiguity of CEOs in international joint ventures: a transaction cost perspective. Journal of Applied Psychology, 86(4), 764–773. https://doi.org/10.1037/0021-9010.86.4.764.

Green, E. D. (2016, May 12). What are the most-cited publications in the social sciences (according to Google Scholar)?. https://blogs.lse.ac.uk/impactofsocialsciences/2016/05/12/what-are-the-most-cited-publications-in-the-social-sciences-according-to-google-scholar/.

Habib, M., & Zurawicki, L. (2002). Corruption and Foreign Direct Investment. Journal of International Business Studies, 33(2), 291–307. https://doi.org/10.1057/palgrave.jibs.8491017.

Hakanson, L., & Nobel, R. (2001). Organizational Characteristics and Reverse Technology Transfer. Management International Review, 41(4), 395–420.

Harzing, A. W. (2002). Acquisitions versus greenfield investments: international strategy and management of entry modes. Strategic Management Journal, 23(3), 211–227. https://doi.org/10.1002/smj.218.

Hennart, J. F., & Larimo, J. (1998). The Impact of Culture on the Strategy of Multinational Enterprises: Does National Origin Affect Ownership Decisions?. Journal of International Business Studies, 29(3), 515–538. https://doi.org/10.1057/palgrave.jibs.8490005.

Hofstede, G. (1983). National Cultures in Four Dimensions: A Research-based Theory of Cultural Differences among Nations. International Studies of Management & Organization, 13(1–2), 46– 74. https://doi.org/10.1080/00208825.1983.11656358.

Hofstede, G. (1995). Insurance as a Product of National Values. The Geneva Papers on Risk and Insurance. Issues and Practice, 20(77), 423–429. https://doi.org/10.1057/gpp.1995.36.

Hofstede, G. (2001). Culture’s Consequences: Comparing Values, Behaviours, Institutions and Organisations Across Nations (2nd edition). Sage Publications.

Hofstede, G. (2013). Replicating and Extending Cross-National Value Studies: Rewards and Pitfalls – An Example from Middle East Studies. AIB Insights, 13(2), 5–7. https://doi.org/10.46697/001c.16952.

Husted, B. W. (1999). Wealth, Culture, and Corruption. Journal of International Business Studies, 30(2), 339–359. https://doi.org/10.1057/palgrave.jibs.8490073.

Insurance Europe. (n.d.). Statistics. Retrieved January 25, 2023, from https://www.insuranceeurope.eu/statistics.

Jaspersen, J. G. (2016). Hypothetical Surveys and Experimental Studies of Insurance Demand: A Review. The Journal of Risk and Insurance, 83(1), 217–255. https://doi.org/10.1111/jori.12100.

Kallunki, J. P., Larimo, J., & Pynnöonen, S. (2001). Value Creation in Foreign Direct Investments. Management International Review, 41(4), 357–376 .

Kim, W. C., & Hwang, P. (1992). Global strategy and multinationals’ entry mode choice. Journal of International Business Studies, 23(1), 29–53. https://doi.org/10.1057/palgrave.jibs.8490258.

Kirkman, B. L., Lowe, K. B., & Gibson, C. B. (2006). A quarter century of Culture’s Consequences: a review of empirical research incorporating Hofstede’s cultural values framework. Journal of International Business Studies, 37(3), 285–320. https://doi.org/10.1057/palgrave.jibs.8400202.

Kogut, B., & Singh, H. (1988). The effect of national culture on the choice of entry mode. Journal of International Business Studies, 19(3), 411–432. https://doi.org/10.1057/palgrave.jibs.8490394.

Kostro, K. (2009). Zagadnienia kulturowe w ekonomii. Gospodarka Narodowa. The Polish Journal of Economics, 230(3), 27–59. https://doi.org/10.33119/GN/101228.

Krug, J. A., & Nigh, D. (1998). Top management departures in cross-border acquisitions: governance issues in an international context. Journal of International Management, 4(4), 267– 287. https://doi.org/10.1016/S1075-4253(98)00015-5.

Leonavičiene, E., & Burinskiene, A. (2022). Accelerating Cultural Dimensions at International Companies in the Evidence of Internationalisation. Sustainability, 14(3), 1–19. https://doi.org/10.3390/su14031524.

Li, J., & Guisinger, S. (1991). Comparative business failures of foreign-controlled firms in the United States. Journal of International Business Studies, 22(2), 209–224. https://doi.org/10.1057/palgrave.jibs.8490300.

Li, J., & Guisinger, S. (1992). The globalization of service multinationals in the “triad” regions: Japan, Western Europe, and North America. Journal of International Business Studies, 23(4), 675–696. https://doi.org/10.1057/palgrave.jibs.8490283.

Loree, D. W., & Guisinger, S. E. (1995). Policy and non-policy determinants of U.S. equity foreign direct investment. Journal of International Business Studies, 26(2), 281–299. https://doi.org/10.1057/palgrave.jibs.8490174.

Luo, Y. (2001a). Antecedents and Consequences of Personal Attachment in Cross-cultural Cooperative Ventures. Administrative Science Quarterly, 46(2), 177–201. https://doi.org/10.2307/2667085.

Luo, Y. (2001b). Determinants of local responsiveness: perspectives from foreign subsidiaries in an emerging market. Journal of Management, 27(4), 451–477. https://doi.org/10.1177/014920630102700404.

Luo, Y., & Park, S. H. (2001). Strategic alignment and performance of market-seeking MNCs in China. Strategic Management Journal, 22(2), 141–155. https://doi.org/10.1002/1097-0266(200101)22:2<141::AID-SMJ151>3.0.CO;2-O.

Luo, Y., & Peng, M. W. (1999). Learning to Compete in a Transition Economy: Experience, Environment, and Performance. Journal of International Business Studies, 30(2), 269–296. https://doi.org/10.1057/palgrave.jibs.8490070.

Luo, Y., Shenkar, O., & Nyaw, M. K. (2001). A Dual Parent Perspective on Control and Performance in International Joint Ventures: Lessons From a Developing Economy. Journal of International Business Studies, 32(1), 41–58. https://doi.org/10.1057/palgrave.jibs.8490937.

Merchant, H., & Schendel, D. (2000). How do international joint ventures create shareholder value?. Strategic Management Journal, 21(7), 723–737. https://doi.org/10.1002/1097-0266(200007)21:7<723::AID-SMJ114>3.0.CO;2-H.

Nachum, L. (2003). Does nationality of ownership make any difference and, if so, under what circumstances? Professional service MNEs in global competition. Journal of International Management, 9(1), 1–32. https://doi.org/10.1016/S1075-4253(03)00005-X.

Newman, K. L., & Nollen, S. D. (1996). Culture and congruence: the fit between management practices and national culture. Journal of International Business Studies, 27(4), 753–779. https://doi.org/10.1057/palgrave.jibs.8490152.

Offerman, L. R., & Hellmann, P. S. (1997). Culture’s consequences for leadership behavior: National values in action. Journal of Cross-Cultural Psychology, 28(3), 342–351. https://doi.org/10.1177/0022022197283008.

Outreville, J. F. (2013). The Relationship Between Insurance and Economic Development: 85 Empirical Papers for a Review of the Literature. Risk Management and Insurance Review, 16(1), 71–122. https://doi.org/10.1111/j.1540-6296.2012.01219.x.

Oyserman, D., Coon, H. M., & Kemmelmeier, M. (2002). Rethinking Individualism and Collectivism: Evaluation of Theoretical Assumptions and Meta-Analyses. Psychological Bulletin, 128(1), 3–72. https://doi.org/10.1037/0033-2909.128.1.3.

Pan, Y. (1996). Influences on foreign equity ownership level in joint ventures in China. Journal of International Business Studies, 27(1), 1–26. https://doi.org/10.1057/palgrave.jibs.8490123.

Pan, Y. (2002). Equity Ownership in International Joint Ventures: The Impact of Source Country Factors. Journal of International Business Studies, 33(2), 375–384. https://doi.org/10.1057/palgrave.jibs.8491022.

Park, H., Borde, S. F., & Choi, Y. (2002). Determinants of insurance pervasiveness: a crossnational analysis. International Business Review, 11(1), 79–96. https://doi.org/10.1016/S0969 5931(01)00048-8 .

Park, S. C., & Lemaire, J. (2011a). The Impact of Culture on the Demand for Non-Life Insurance (Wharton School IRM Working Paper No. 2). https://doi.org/10.2143/AST.42.2.2182806.

Park, S. C., & Lemaire, J. (2011b). Culture Matters: Long-Term Orientation and the Demand for Life Insurance. Asia-Pacific Journal of Risk and Insurance, 5(2), 1–23. https://doi.org/10.2202/2153-3792.1105.

Park, S. H., & Ungson, G. R. (1997). The effect of national culture, organizational complementarity, and economic motivation on joint venture dissolution. Academy of Management Journal, 40(2), 279–307. https://doi.org/10.5465/256884.

Peterson, M. F., & Smith, P. B. (1997). Does national culture or ambient temperature explain crossnational differences in role stress? No sweat!. Academy of Management Journal, 40(4), 930–946. https://doi.org/10.2307/256953.

Pothukuchi, V., Damanpour, F., Choi, J., Chen, C. C., & Park, S. H. (2002). National and Organizational Culture Differences and International Joint Venture Performance. Journal of International Business Studies, 33(2), 243–265. https://doi.org/10.1057/palgrave.jibs.8491015.

Riahi-Belkaoui, A. (1998). Cultural determinism and systematic risk of global stock exchanges. International Journal of Commerce and Management, 8(3/4), 102–108. https://doi.org/10.1108/eb047377.

Richards, M., & De Carolis, D. M. (2003). Joint venture research and development activity: an analysis of the international biotechnology industry. Journal of International Management, 9(1), 33–49. https://doi.org/10.1016/S1075-4253(03)00002-4.

Robie, C., Ryan, A. M., Schmieder, R. A., Parra, L. F., & Smith, P. C. (1998). The Relation Between Job Level and Job Satisfaction. Group and Organization Management, 23(4), 470–495. https://doi.org/10.1177/1059601198234007.

Roth, K., & O’Donnell, S. (1996). Foreign subsidiary compensation strategy: an agency theory perspective. Academy of Management Journal, 39(3), 678–703. https://doi.org/10.2307/256659.

Ryan, A. M., McFarland, L., Baron, H., & Page, R. (1999). An international look at selection practices: nation and culture as explanations for variability in practice. Personnel Psychology, 52(2), 359–391. https://doi.org/10.1111/j.1744-6570.1999.tb00165.x.

Salter, S. B., & Niswander, F. (1995). Cultural influence on the development of accounting systems internationally: a test of Gray’s theory. Journal of International Business Studies, 26(2), 379–397. https://doi.org/10.1057/palgrave.jibs.8490179.

Schneider, S. C., & De Meyer, A. (1991). Interpreting and responding to strategic issues: the impact of national culture. Strategic Management Journal, 12(4), 307–320. https://doi.org/10.1002/smj.4250120406.

Seidenfuss, K. U., & Storm, J. (2022). Adapting project management methodologies for different cultures: teams, toolboxes and Hofstede. Journal of Modern Project Management, 10(1), 110–125. https://doi.org/10.19255/JMPM02907.

Shane, S. A. (1992). The effect of cultural differences in perceptions of transaction costs on national differences in the preference for licensing. Management International Review, 32(4), 295–311. https://doi.org/10.5465/ambpp.1992.17515164.

Shane, S. (1994). The effect of national culture on the choice between licensing and direct foreign investment. Strategic Management Journal, 15(8), 627–642. https://doi.org/10.1002/smj.4250150805.

Shane, S., Venkataraman, S., & MacMillan, I. (1995). Cultural Differences in Innovation Championing Strategie. Journal of Management, 21(5), 931–952. https://doi.org/10.1177/014920639502100507.

Shen, L. (2023). Culture and Explicitness of Persuasion: Linguistic Evidence From a 51-Year Corpus-Based Cross-Cultural Comparison of the United Nations General Debate Speeches Across 55 Countries (1970–2020). Cross-Cultural Research, 57(2–3), 166–192. https://doi.org/10.1177/10693971221139523.

Smith, P. B., Dugan, S., Peterson, M. F., & Leung, K. (1998). Individualism: Collectivism and the handling of disagreement. A 23 country study. International Journal of Intercultural Relations, 22(3), 351–367. https://doi.org/10.1016/S0147-1767(98)00012-1.

Śliwiński, A. (2016). Popyt na ubezpieczenia na życie: przegląd badań światowych. In S. Nowak, A. Z. Nowak, & A. Sopoćko (Eds.), Polski rynek ubezpieczeń na tle kryzysów społeczno-gospodarczych, (pp. 110–125). Wydawnictwo Naukowe Wydziału Zarządzania Uniwersytetu Warszawskiego. http://www.wz.uw.edu.pl/portaleFiles/6133-wydawnictwo-/Polski_rynek_ubezpieczen_e-book.pdf.

Śliwiński, A. (2019). Rola ubezpieczeń w gospodarce. Oficyna Wydawnicza SGH.

Taras, V., Kirkman, B. L., & Steel, P. (2010). Examining the impact of culture’s consequences: A three-decade, multilevel, meta-analytic review of Hofstede’s cultural value dimensions. Journal of Applied Psychology, 95(3), 405–439. https://doi.org/10.1037/a0018938.

Thomas, A. S., & Mueller, S. L. (2000). A Case for Comparative Entrepreneurship: Assessing the Relevance of Culture. Journal of International Business Studies, 31(2), 287–301. https://doi.org/10.1057/palgrave.jibs.8490906.

Treerattanapun, A. (2011). The Impact of Culture on Non-Life Insurance Consumption. Wharton Research Scholars, 78. https://repository.upenn.edu/wharton_research_scholars/78/.

Van de Vliert, E., & Van Yperen, N. W. (1996). Why cross-national differences in role overload? Don’t overlook ambient temperature!. Academy of Management Journal, 39(4), 986–1004. https://doi.org/10.5465/256720.

Zhou, Y., & Kwon, J.-W. (2020). Overview of Hofstede-Inspired Research Over the Past 40 Years: The Network Diversity Perspective. SAGE Open, 10(3). https://doi.org/10.1177/2158244020947425.

Zietz, E. N. (2003). An Examination of Demand for Life Insurance. Risk Management and Insurance Review, 6(2), 159–191. https://doi.org/10.1046/J.1098-1616.2003.030.x.

Wróć do: