Socio-cultural factors and international competitiveness

• Main Authors: Madara Apsalone, Ērika Šumilo
• Format: Article
• Language: English
• Published: Vilnius Gediminas Technical University 2015-12-01
• Series: Business, Management and Education
• Subjects: cross-cultural studies; international competitiveness; socio-cultural factors
• Online Access: http://journals.vgtu.lt/index.php/BME/article/view/2181
• ISSN: 2029-7491; 2029-6169

Socio-cultural factors – shared values, norms and attitudes are significant, but less acknowledged sources of international competitiveness. Previous studies have found socio-cultural factors positively affecting various aspects of international competitiveness – entrepreneurship, innovation, productivity and international cooperation. These factors are more sustainable and less affected by external environment changes in comparison with the traditional factors. Socio-cultural factors provide an opportunity to develop competitiveness strategies based on unique advantages. This research aims to explore the impact of socio-cultural factors on international competiveness in small, open economies. Analysing relationship between 400 socio-cultural indicators and competitiveness indicators such as productivity, economic development, business and government efficiency, innovation capacity and infrastructure in 37 countries, six socio-cultural factors have emerged: Collectivism and Hierarchy; Future, Cooperation and Performance Orientation, Self-expression, Monochronism and Rationality, Economic Orientation and Social structure. The first factor – Collectivism and Hierarchy – tends to reduce the international competitiveness; the other five affect it positively.