The Effects of Hofstede's Cultural Dimensions on Innovation

In a global environment, innovation has become especially important to remain competitive in the market. Many factors affect the rate of innovation. Specifically, national culture significantly impacts a nation's ability to innovate. Using Hofstede's cultural dimensions [Power Distance, Individualism, Masculinity, Uncertainty Avoidance], this research attempts to explain a culture's effects on innovation. Based on data from the Organization for Economic Cooperation and Development (OECD), countries showing higher levels of innovation correlate with better quality of life and profitability amongst corporations in countries. Organizations can use the correlations identified between each of Hofstede's frameworks to improve company culture and increase rates of innovation. A low Power Distance and Uncertainty Avoidance coupled with an Individualistic culture had the largest positive effect on innovation.