Impact of National Culture on Financial Performance of Pharmaceutical Sector in UK

MENTAL WEALTH: PROFESSIONAL EXCHANGE AND APPLIED RESEARCH
Research Topic: An Impact of National Culture on Financial Performance of
Pharmaceutical Sector in UK. A research work on Pfizer Ltd.
Introduction
The current research poster is based on the topic of Impact of National Culture on
Financial Performance of Selected Corporate Sector in UK for which selected sector is
Pharmaceutical. The Pharmaceutical sector mainly associated with and deals in
discovery, development, and manufacture of drugs and medications. The organisation
selected for current research project is Pfizer Ltd which is a principal subsidiary of the
well known multinational pharmaceutical company Pfizer the main headquarter of
which is suited at Tadworth, Surrey in the United Kingdom.
Abstract
With a rise in multiculturalism and expansion of organisation at international level the
impact of national culture has increased on financial performance and development of
an organisation as they need to set a balance between different aspects of diversified
nations having varied social and cultural dynamics. Thus, current investigation is lead
out to get a glimpse of how culture diversify leads an impact of financial decision of a
firm along with investigation about the part of national culture on firm’s performance.
Thus, to understand the Impact of National Culture on Financial Performance of a firm
implication of Hofstede's work and its application is made.
Background
Hypothesis (Research questions)
The set hypothesis for current investigation are provided below in form of research
questions:
What influence does the national culture have on firm's financial performance?
Does national culture intervene or affect financing decision of firm?
How alteration in financial decision transforms the financial performance of firm?
Objectives / Purpose
In the literature of finance, the studies are emerging which explore the role of cultural
diversities on firm financing decision.
Research have also proved that the capital structure decision is essential financial
decision which directly corresponds to the firm performance.
To investigate the part of national culture on firm's performance when capital structure
decision plays a mediate role
This sections form a vital part of research which provides information about proposed
methods used for leading out current investigation for which use of research onion has
been made:
Research philosophy- Adoption of positivism philosophy is made to conduct current
research in a systematic and scientific way.
Research approach- Application of deductive approach is made to support
quantifiable nature of investigation.
Research strategy- Utilisation of survey method is made as it ensures collection of
data with the help of questionnaire that offers easiest and simplest way of data
collection.
Choices of method- Use of quantitative form of method is made to have easy
collection of information in numeric terms along with better presentation and
measures results of current investigation.
Sources of data collection- Data has been collected from primary sources with help of
below stated questionnaires. A sample size of 50 participants had been selected from
employees of GlaxoSmithKline, AstraZeneca and Pfizer UK with the help of random
References
Prince, N.R., Prince, J.B. and Kabst, R., 2020. National culture and incentives:
Are incentive practices always good?. Journal of World Business.
55(3). p.101075.
Amoako, G.K., 2019. Relationship marketing, orientation, brand equity and firm
value: The mediating role of customer value—an emerging market
perspective. Journal of Relationship Marketing. 18(4). pp.280-308.
Online:
Umar Farooq and Shamshair Khan, 2019. National Culture and Firm Financial
Performance: A Mediating Role of Firm Financing Decision. [Online]
Available Through:<
https://www.researchgate.net/publication/334883817_National_Culture
_and_Firm_Financial_Performance_A_Mediating_Role_of_Firm_Fina
ncing_Decision>.
Interpretation
It has been observed that 14 participants believes that positive
impact is lead by National Culture on Financial Performance of Pfizer Ltd
where as 16 supported negative impact along with 20 other who opted for
mixed impact.
Conclusion
It has been concluded from current investigation that Hofstede's
culture dimension theory provides information about the Impact of National
Culture on Financial Performance. Furthers, it could be summarised that
High power distance, High individualistic behaviour and Long term
orientation are negative aspects of national cultures whereas Have high
masculine, High uncertainty avoidance and Indulgence culture lead positive
impact of financial performance of a firm.
Literature Review
With respect to the information provided by the Umar Farooq and
Shamshair Khan, 2019 it has been evaluated that Hofstede’s Cultural Dimensions
Theory have various aspects which distinguish between various national culture
and their impact on a business and performance of firm. It has been summarised
that high power distance, high individualistic behaviour along with long term
orientation are dimension of national cultures that have adverse impact on
financial performance where as high masculine, high uncertainty avoidance and
indulgence culture are aspects of national culture which have positive impact on
financial performance of a firm in Pharmaceutical Sector.
Theme 1: Role and influence of cultural diversities on firm financing decision
Interpretation
The above pie chart is showing that 20 participants supported for
Attitudes toward financial institutions, 14 respondents favoured Differences in
religious beliefs where as 16 opted for Presence of different demographic groups
showing the role and influence of cultural diversities on firm financing decision.
Theme 2: Capital structure decision forms an essential financial decision
which could lead direct corresponds on the firm performance
Interpretation
40 participants were agreed with the above stated fact where as 2
were disagreed along with 8 others who seemed neutral.
Theme 3: National cultural aspects leads an adverse impact on firm's
performance
Interpretation
From a total of 50 participants, 15 supported for High power
distance, 18 opted for High individualistic behaviour while 17 favoured Long
term orientation as Kind of national cultural aspects leads an adverse impact on
firm's performance and capital structure decision of on Pfizer Ltd.
Theme 4: Aspects of National Culture have positive impact
Interpretation
The above pie chart is depicting that 16 favoured have high
masculine, 19 supported for High uncertainty avoidance where as 15 opted for
Indulgence culture as aspects of National Culture have positive impact on the
financial performance of a firm.
Theme 5: Overall impact of National Culture on Financial Performance
Q1) Which factor is representing and showing the role and influence
of cultural diversities on firm financing decision?
Frequency
a) Attitudes toward financial institutions 20
b) Differences in religious beliefs 14
c) Presence of different demographic groups 16
Q2) Are you agreed with the fact that capital structure decision
forms an essential financial decision which could lead direct
corresponds on the firm performance?
Frequency
a) Agreed 40
b) Disagreed 2
c) Neutral 8
Q3) Which Kind of national cultural aspects leads an adverse impact
on firm's performance and capital structure decision of on Pfizer Ltd?
Frequency
a) High power distance 15
b) High individualistic behaviour 18
c) Long term orientation 17
Q4) What aspects of National Culture have positive impact on the
financial performance of a firm?
Frequency
a) Have high masculine 16
b) High uncertainty avoidance 19
c) Indulgence culture 15
Q5) What overall impact of National Culture is seen on Financial
Performance of Pfizer Ltd?
Frequency
a) Positive 14
b) Negative 16
c) Mixed Impact 20