A Cultural Values Understanding of Nations’ Readiness for Knowledge Economy

Abstract

National culture could be a key factor in explaining nations’ readiness for knowledge economy (RKE). This study extends Khalil and Marouf's (2015) investigation into seeking a cultural values–based understanding of the variation in RKE across nations. Using a data set on 59 nations, nine hypotheses were tested and national wealth’s mediating effect on the national culture–RKE relationship was explored. Results indicate that the cultural values of uncertainty avoidance, future orientation, institutional collectivism, and in-group collectivism have the most negative influence on RKE, respectively, whereas humane orientation has a positive influence. When national wealth is controlled for, uncertainty avoidance is the most influential cultural determinant of RKE. These findings could provide a foundation for culture-based policies and strategies aimed at enhancing RKE across nations.