Culture Matters : Analysis of Culture in Sweden and Finland and Its Influence on Innovation and Job Performance

Abstract: The present paper aimed to study the culture in Sweden and Finland, by analyzing two research centers of one multinational organization in each location. Hofstede’s cultural framework was used as a benchmark for the research. Further, the study investigated the significant impact that culture has on innovation and job performance. To achieve the purpose, quantitative approach was adopted and a self-competition questionnaire was distributed to the employees of both research centers. Two hypotheses were tested concerning with the relationship between any of Hofstede’s cultural dimensions and innovation, respectively job performance. After a regression analysis was conducted, two models were created which described the impact of the cultural constructs. All of Hofstede’s initial four dimensions indicated a relationship with innovation, while only individualism and uncertainty avoidance showed to be significant in predicting job performance. An unexpected result was discovered in the individualism index, which has drastically shifted, putting Finland in the collectivist societies, with Sweden following the same trend. The study’s results should be able to contribute to the better understanding of culture’s influence on innovation and job performance in multinational organizations and help practitioners by demonstrating the importance of considering culture’s effect.