Impact of National Cultural Networks on Trade Network: QAP Analysis

Purpose The purpose of this study is to reveal the dimensions in which each country’s cultural score has an effect on the size of trade, and to suggest ways to improve trade volume in the future. Design/Methodology/Approach We build an intercultural network using intercultural distance across nations using GLOBE dimension scores (House et al., 2004) and then analyzes the network. And We first selected 54 countries to match the nodes of the trade and cultural distance network. After building a matrix of trade and culture distances between 54 countries, the matrix was visualized as a network. We performed QAP analysis with the Trade Network as the dependent variable and the Cultural Network as the independent variable. Findings We performed a QAP regression analysis using the 2019 trade network between countries as the dependent variable and the cultural distance network between countries based on nine cultural dimensions as an independent variable. The results of this analysis are as follows: Among the 9 cultural dimensions, Assertiveness, Performance Orientation, Power Distance and Uncertainty Avoidance were found to significantly affect the trade network between countries. Research Implications This study explored the effects of cultural distance networks between countries on trade network using QAP regression analysis. As a practical implication, Overseas sales and trade representatives in the company should seek measures to increase the size of trade between countries with small cultural differences