National power equality and innovation performance – The moderating role of societal tightness

Received:October 15, 2017  Revised:October 15, 2017

Key Words:  National culture; innovation; cultural tightness; egalitarianism

Author NameAffiliation
Chenchen Li* Southwestern University of Finance and Economics 
Chi-yue Chiu0 The Chinese University of Hong Kong 

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Abstract:
      We examined whether national differences in innovation arise from cross-cultural variations in power equality in the present study. We further proposed that equal nations are more innovative because they attract and foster talents by offering equal access to resources, which in turn sparks innovation. Besides, societal tightness constrains nations to fully enjoy innovation benefits associated with power equality. With national level data on innovation outputs, national democracy, talent competitiveness, we find evidence supporting the positive influence of national power equality on time-lagged national innovation performance and the mediating role of talent development in the relationship. Consistent with our hypotheses, societal tightness moderates the positive association between power equality and talent development. Specifically, the positive effect of equality on talent development is more pronounced in loose societies than that in tight societies. The linkage between power equality and innovation outputs through talent development is moderated by societal tightness as well that the indirect effect is stronger in tight versus loose societies.

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