The influence of national culture on changes in R&D expenses among agrochemical firms

Abstract

Research and development (R&D) represents a significant expenditure and investment into the future competitiveness of a given firm. The behavioural theory of the firm assumes that these expenditures are subject to changes caused by performance feedback. This paper builds upon these assumptions and extends them by considering the possible effect of national cultures on the nature of these responses to the performance feedback. The research follows 119 firms from nine countries over the period 2001-2015 and analyses their behaviour using generalized linear mixed models. The findings mostly support an effect of national cultures, measured by Hofstede’s cultural dimensions, on changes in R&D expenditure and indicate that national culture is one of the factors which needs to be taken into account when utilizing the behavioural theory of the firm.