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The Impact of Socio-Cultural Factors on the Business Environment

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  • Cătălina-Ioana TOADER

    (Bucharest University of Economic Studies)

Abstract

The aim of this paper is to understand the importance of the influence of socio-cultural factors on business performance. Society and culture have a significant impact on business environment. Cultural and social differences between countries are a challenge for managers, as they need to acquire intercultural competence and to anticipate the impact of all socio-cultural factors. The study was carried out over the period 2010-2020 on a sample of 28 countries in Europe, the results showing that social factors such as education, government spending on R&D or health in GDP or the Gini indicator of population income inequality, as well as cultural factors such as corruption, the rule of law, the companies’ innovation level significantly influence their income and their prospects of doing business in that state.

Suggested Citation

  • Cătălina-Ioana TOADER, 2022. "The Impact of Socio-Cultural Factors on the Business Environment," CECCAR Business Review, Body of Expert and Licensed Accountants of Romania (CECCAR), vol. 3(7), pages 35-42, July.
    • Handle: RePEc:ahd:journl:v:3:y:2022:i:7:p:35-42
    DOI: 10.37945/cbr.2022.07.04
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    References listed on IDEAS

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    1. Gaganis, Chrysovalantis & Pasiouras, Fotios & Voulgari, Fotini, 2019. "Culture, business environment and SMEs' profitability: Evidence from European Countries," Economic Modelling, Elsevier, vol. 78(C), pages 275-292.
    2. Charilaos Mertzanis & Mona Said, 2019. "Access to skilled labor, institutions and firm performance in developing countries," International Journal of Manpower, Emerald Group Publishing Limited, vol. 40(2), pages 328-355, February.
    3. Cherchye, Laurens & Verriest, Arnt, 2016. "The impact of home-country institutions and competition on firm profitability," International Business Review, Elsevier, vol. 25(4), pages 831-846.
    4. Nicolás Salvador Beltramino & Domingo García Pérez De Lema & Luis Enrique Valdez Juárez, 2020. "Impact of the human capital on the performance of micro-enterprise: an empirical study in Argentina," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 40(4), pages 439-464.
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    More about this item

    Keywords

    social factors; cultural factors; business environment; investment prospects;
    All these keywords.

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • E64 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Incomes Policy; Price Policy
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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