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Does national culture affect firm investment in training and development?

The research highlights three key cultural factors: power distance (the acceptance of unequal power distribution), future orientation (emphasis on long-term planning), and uncertainty avoidance (preference for stability over ambiguity). Findings reveal that firms in low-power-distance, high-future-orientation, and high-uncertainty-avoidance cultures (e.g., Germanic and Scandinavian countries) invest more in training, as these cultures value skill development, future preparedness, and risk mitigation. Conversely, high-power-distance cultures (e.g., parts of Asia and Latin America) or those with low future orientation (e.g., some African nations) invest less. The study also notes that larger firms and high-tech industries amplify these cultural effects, with larger companies using training to counter uncertainty and high-tech firms prioritizing future-ready skills. The research underscores the need for multinational firms to tailor training strategies to local cultural contexts while acknowledging potential moderators like organizational culture.

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