Cross-country analysis of national sustainable competitiveness: the impact of corruption and culture

This study examines how national cultural dimensions moderate the relationship between institutional quality, innovation efficiency, and eco-efficiency within a two-stage sustainable competitiveness framework, using data from 33 countries over the period 2015–2022. Institutional quality is proxied by the Corruption Perceptions Index (CPI), while culture is captured using Hofstede’s cultural dimensions. The results reveal substantial cross-country heterogeneity in how institutional integrity translates into efficiency outcomes. Power distance and long-term orientation are positively associated with innovation efficiency, whereas individualism and uncertainty avoidance exhibit negative direct effects. Interaction results indicate that the innovation-enhancing benefits of cleaner institutions are weaker in highly individualistic societies but stronger in uncertainty-averse and long-term oriented cultures. In contrast, the effects on eco-efficiency are more complex. Higher CPI scores do not automatically correlate with eco-efficiency, as cultural traits such as masculinity and indulgence tend to reinforce short-term economic–environmental trade-offs. However, institutional transparency significantly associates with eco-efficiency in uncertainty-averse societies by reducing regulatory ambiguity and strengthening compliance. Overall, the findings suggest that lower corruption fosters innovation efficiency and eco-efficiency only when aligned with compatible cultural contexts. This study contributes to the literature by integrating institutional quality and culture into a unified efficiency framework and offers insights for designing culturally aligned anti-corruption, innovation, and sustainability strategies.