THE INTERACTION EFFECTS OF LONG-TERM ORIENTATION AND GLOBALIZATION INTERACTION ON A COUNTRY’S INNOVATION WORLDWIDE

Abstract

The author endeavors to examine the impact of globalization on a nation's innovation across sixty-one countries worldwide in 2022. To test the four hypotheses, the author borrowed secondary data from the Hofstede Cultural Dimensions Study in 2012, the World International Property Organization, the World Bank, and the Global Innovation Index websites. The author used the data as evidence to assess innovation, culture, globalization, and per capita income. The study findings validate previous research results and indicate that the cultural values of uncertainty acceptance and long-term orientation are strongly linked to innovation in a country, as revealed by the implementation of the least square multiple regression technique (LSMRA). The study results show two interactions; the first interaction is between long-term orientation and globalization, and the second interaction is between long-term orientation and uncertainty avoidance. These two moderating factors act as significant moderators, as their interactions affect the intensity of the association between uncertainty avoidance and innovation and the intensity of the association between long-term orientation and innovation. In addition, the study suggests that globalization does not have a direct impact on a nation's innovation. Rather, its influence happens through its interaction with long-term orientation, which, in turn, affects the connection between long-term orientation and innovation.