The Influence of Globalization on a Country’s Cultural Values: Has Globalization Influenced Power Distance among Countries?

Abstract

AbstractThe scope of this research is to examine the impact of globalization on people socially and culturally in many countries regarding power distance. Hence, this research study empirically investigates the relationship between globalization and Hofstede’s cultural value of power distance in fifty countries and regions worldwide. The authors borrowed secondary data from two different sources, the Manikov and Hofstede’s Research in 2012 study and the KOF Globalization Index in 2019, to test the relationship between globalization and power distance using single regression analysis. The study results show a negative and significant relationship between globalization and power distance among countries and nations (β= -1.174; P-value=0.000). The study results could benefit policymakers to consider accommodating globalization, top-level managers in multi-global corporations as power distance impacts consumer buying behavior. The authors also discuss the theoretical implications and future studies in the discussion section.Keywords: Globalization, National Culture, Rates of Innovation