The relationship between cultural values and innovativeness: a study of Malay and Chinese entrepreneurs in Malaysia

Abstract

In today’s competitive business environment, innovation is critical not only to facilitate differentiation, but also to reduce cost and add value for the customers. Interestingly, many studies have shown that innovation is related with culture. In particular, Hofstede’s (1980) cultural dimensions have been widely used to demonstrate how societies around the world differ in terms of innovativeness. However, little is known about ethnic differences in Malaysia. The current study takes the first step to address the issue by proposing a theoretical framework to guide future quantitative studies on the relationship between ethnicity, cultural values and entrepreneurial innovativeness. In addition, a survey instrument is also developed based on Hofstede’s (1980) measures of cultural values, and Schumpeter’s (1934) definition of entrepreneurial innovation. Focus is given on the Malays and Chinese communities as they constitute the two largest ethnic groups in Malaysia.