IDEAS home Printed from https://ideas.repec.org/a/ahd/journl/v3y2022i7p35-42.html
   My bibliography  Save this article

The Impact of Socio-Cultural Factors on the Business Environment

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://www.ceccarbusinessreview.ro/the-impact-of-socio-cultural-factors-on-the-business-environment-a235d/download-PDF/
    Download Restriction: no
    File URL: https://www.ceccarbusinessreview.ro/the-impact-of-socio-cultural-factors-on-the-business-environment-a235a/abstract/
    Download Restriction: no
    File URL: https://libkey.io/10.37945/cbr.2022.07.04?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. 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.
    3. 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.
    4. 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.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Oleksiuk Adam & Pleśniak Agnieszka, 2022. "Environment Characteristics and Internationalization of SMEs: Insights from a Polish and Finnish Sample," Journal of Management and Business Administration. Central Europe, Sciendo, vol. 30(3), pages 175-194, September.
    2. Skrynkovskyy, Ruslan & Pavlenchyk, Nataliia & Tsyuh, Svyatoslav & Zanevskyy, Ihor & Pavlenchyk, Anatoliі, 2022. "Economic-mathematical model of enterprise profit maximization in the system of sustainable development values," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 8(4), December.
    3. Buitrago R., Ricardo E. & Barbosa Camargo, María Inés, 2021. "Institutions, institutional quality, and international competitiveness: Review and examination of future research directions," Journal of Business Research, Elsevier, vol. 128(C), pages 423-435.
    4. Gull, Ammar Ali & Ahsan, Tanveer & Qureshi, Muhammad Azeem & Mushtaq, Rizwan, 2023. "Striving to safeguard shareholders or maintain sustainability in periods of high uncertainty: A multi-country evidence," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    5. Farah, Bassam & Chakravarty, Dwarka & Dau, Luis & Beamish, Paul W., 2022. "Multinational enterprise parent-subsidiary governance and survival," Journal of World Business, Elsevier, vol. 57(2).
    6. Huang, Liangxiong & Ma, Minghui & Wang, Xianbin, 2022. "Clan culture and risk-taking of Chinese enterprises," China Economic Review, Elsevier, vol. 72(C).
    7. Dicky Jhon Anderson Butarbutar & Annisa Lisdayanti, 2020. "The impact of internal business environment on marketing strategies effecting marketing performance: Case of retail industry Bandung city, Indonesia," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 9(4), pages 385-391, July.
    8. Moraes, Ricardo Kalil & Wanke, Peter Fernandes & Faria, João Ricardo, 2021. "Unveiling the endogeneity between social-welfare and labor efficiency: Two-stage NDEA neural network approach," Socio-Economic Planning Sciences, Elsevier, vol. 77(C).
    9. Anton, Sorin Gabriel & Nucu, Anca Elena Afloarei, 2022. "On the role of institutional factors in shaping working capital management policies: Empirical evidence from European listed firms," Economic Systems, Elsevier, vol. 46(2).
    10. Muhammad Usman & Rizwan Shabbir & Ilyas Ahmad & Ahsan Zubair, 2022. "Host Countries’ Institutional Environment and Multinational Enterprises: Does Home-Host Developmental Status Matter?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(4), pages 2640-2664, December.
    11. Eric E. O. Opoku & Isabel K. M. Yan & Kate Hynes, 2020. "Reaching up and reaching out: The impact of competition on firms’ productivity and export decisions," Pacific Economic Review, Wiley Blackwell, vol. 25(1), pages 69-101, February.
    12. David B. Audretsch & Maksim Belitski & Farzana Chowdhury & Sameeksha Desai, . "Home-country export regulations, credit markets, and corruption: implications for different types of internationalization," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    13. Hasan, Iftekhar & Jackowicz, Krzysztof & Kowalewski, Oskar & Kozłowski, Łukasz, 2023. "Cultural values of parent bank board members and lending by foreign subsidiaries: The moderating role of personal traits," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 83(C).
    14. Foroudi, Pantea & Gupta, Suraksha & Patel, Parth & Batsakis, Georgios & Vaatanen, Juha & Czinkota, Michael, 2023. "The effect of home country characteristics on the internationalization of EMNEs: The moderating role of knowledge stock," International Business Review, Elsevier, vol. 32(2).
    15. Natalia Shmatko & Galina Volkova, 2020. "Bridging the Skill Gap in Robotics: Global and National Environment," SAGE Open, , vol. 10(3), pages 21582440209, September.
    16. Omar Farooq & Khondker Aktaruzzaman & Harit Satt & Fatima Zahra Bendriouch, 2022. "Innovations as a Response to Shadow Economy: Evidence from Privately Held Firms," Journal of Industry, Competition and Trade, Springer, vol. 22(3), pages 349-370, December.
    17. Mustafa Ozguven & Chong Yan Gao & Mohamed Yacine Si Tayeb, 2021. "The Utilization of Autoregressive Forecasting Models in Strategic Management," International Journal of Science and Business, IJSAB International, vol. 5(7), pages 170-185.
    18. Rodríguez, Alicia & Hernández, Virginia & Nieto, María Jesús, 2022. "International and domestic external knowledge in the innovation performance of firms from transition economies: The role of institutions," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    19. Priya, Pragati & Sharma, Chandan, 2023. "Reinforcing the effects of corruption and financial constraints on firm performance: Normal versus crisis period in developing economies," Economic Modelling, Elsevier, vol. 127(C).
    20. Kaya, Orcun, 2022. "Determinants and consequences of SME insolvency risk during the pandemic," Economic Modelling, Elsevier, vol. 115(C).

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ahd:journl:v:3:y:2022:i:7:p:35-42. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Radu CIOBANU (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.