Is there any relation between Hofstede’s cultural dimensions and corruption in developing countries?

Abstract

Purpose This paper aims to investigate the relation between the cultural dimensions of Hofstede and corruption in developing countries. Design/methodology/approach This study uses a quantitative research approach with multiple regression analysis and quantile regression (QR) analysis. Findings The results showed that all cultural dimensions except power distance index (PDI) influence the level of corruption in developing countries. This study also found something interesting from the significance of the cultural dimensions of individualism and uncertainty avoidance (UAI) in the regression model. The community of developing countries tends to be collective which means that the level of corruption in the country is getting higher. The cultural dimension of UAI in developing countries is also interesting to study because of the positive relation with the Corruption Personal Index value which means it tends to be freer from corruption. Research limitations/implications This research is limited to the number of samples and the scope of the Hofstede’s cultural dimensions which are limited in developing countries. Practical implications The results of this research can add empirical evidence related to cultural variables and corruption, especially in developing countries. Social implications This research is expected to be a reference on cultural aspect and corruption in developing countries to be studied more deeply to investigate the causes of corruption in developing countries. Originality/value This is a preliminary study using cultural dimension and corruption in developing countries with quantile regression (QR) as an analysis tool and can add empirical evidence about the cultural dimensions and corruption.

The Story of Rising Corruption Post-Village Government Reform - A View of Three Theories: Fraud, Managerial Hegemony, and Culture

“…Yet, this result disagrees with Yeganeh (2014) and Callen et al (2011) that the higher the uncertainty avoidance, the higher the unethical behavior. Nevertheless, this result aligns with Guritno et al (2020) Conversely, this research confirms that corruption stems from the village head's great power, leading to the management hegemony in the village government and eventually building up a particular regime. This result verifies Crowe (2010) that the village head's too-strong position has triggered arrogance not to be touched by control procedures.…”

“…The result is in line with Callen et al (2011) that the higher the uncertainty avoidance, the higher the earnings management practice carried out by managers. Nevertheless, these results contradict Guritno et al (2020)…”

The potential of corruption based on Hofstede cultural dimensions and institutional quality: an international evidence

“…This finding also shows that countries whose cultural profile is characterized by positive IDV or collectivism, uncertainty-avoidance and long-term orientation indicate low levels of financial crime. A slightly different result was expressed by Guritno et al (2021); the results of the research show that all cultural dimensions except power distance affect the level of corruption in developing countries. This research also finds interesting finding from the significance of the cultural dimensions of IDV and uncertainty-avoidance in the regression model.…”

“…Corruption in governmental institutions is a social phenomenon that may potentially break the trust of the institutions as well as disrupt the economic growth of a country. According to Husted (2002), Seleim and Bontis (2009) and Guritno et al (2021), corruption will also potentially weaken democracy, exacerbate inequality, cause poverty, social issues and environmental crisis. Based on the data retrieved in the last 10 years, the global average from 131 countries does not indicate any significant development regarding the corruption eradication.…”

“…Research on the correlation between NC and corruption is considerably limited. However, several research correlating NC and corruption have been carried out by Alfarin and Meiranto (2021), Guritno et al (2021), Husted (2002), Irawanto (2018), Mihret (2014), Seleim and Bontis (2009) and Yamen et al (2019). Due to the limited research on the correlation of NC and corruption, to expand the existing literature for the research, the authors have examined the topic by involving the mediation variable of influence, namely, the quality of the institutions.…”