Impact of Hofstede's cultural dimensions on sustainable competitive advantage: The mediating role of entrepreneurial innovativeness among Malaysian ethnic entrepreneurs

Abstract

This study investigated the impact of Hofstede cultural dimensions on sustainable competitive advantage with the mediating role of entrepreneurial innovativeness among Malays, Malaysian Chinese, and Malaysian Indian entrepreneurs in the retail industry. This study involved a quantitative approach with standardized questionnaires distributed among target respondents through non-probability sampling techniques, including snowball sampling, quota sampling, and convenience sampling. The data were collected in a cross-sectional setting from Malaysian retail ethnic entrepreneurs. AMOS-SEM and SPSS were used to analyze the data. The findings of this study revealed a positive and significant influence of indulgence, long-term orientation, masculinity, and low power distance on sustainable competitive advantage among Chinese, Malay, and Indian entrepreneurs. Furthermore, the direct effect of entrepreneurial innovativeness was also positive and significant in terms of sustainable competitive advantage among Chinese, Malay, and Indian entrepreneurs. Finally, the indirect effects of collectivism, indulgence, low uncertainty avoidance, low power distance, masculinity, and long-term orientation on sustainable competitive advantage through mediator entrepreneurial innovativeness were positive and significant among Malaysian Chinese. However, in Malay (indulgence) and India (collectivism, low uncertainty avoidance, and low power distance), these were not significant. Our results suggest that academics and businesses should consider how cultural norms of masculinity, long-term orientation, and uncertainty avoidance impact sustainable competitive advantage activities. Rewards encouraging sustainable competitive advantage in one subculture may not promote it in another. Subcultural norms influence entrepreneurs' decisions, expectations, and incentives in a culturally diverse community.