The effect of national culture on information flow

Abstract

The primary purpose of this paper is to test the effect of national culture on service provision within Islamic Insurance(Takaful). This paper seeks to incorporate the following constructs: Power distance, information gap and information flow as an observed variable represented by hierarchical driven information gathering and sharing or functional driven information gathering and sharing. The secondary purpose, is to investigate Hofstede’s claim regarding the homogeneity of Arab culture in which he believes dominated by the religion of Islam. The sample (n=462) were employees of Takaful operators in Kuwait and Egypt, and they completed the questionnaires in a self administrated method. To test the hypotheses, structural equation modelling using Analysis of Moments structure (AMOS) was employed. It was found that there is differences in information flow between Kuwait and Egypt. Kuwait was found low power distance and functional driven information gathering and sharing mediated by low information gap, whereas Egypt was found high power distance provide information in hierarchical driven information gathering and sharing mediated by high information gap. Another finding, was the significant evidence that is not supporting Hofested’s claim of homogeneity of all Arab culture. Result show clearly how two different Arab countries varies in the services they provide within a sector that unique to the Arab cluster. This paper confirms an existing theory that to the best of the researcher knowledge has never been tested which adds to the body of knowledge in general and Takaful industry in particular how national culture may affect service provision. Secondly, it disconfirm Hofstede’s claim of homogeneity of the Arab culture as it evidently proves the cultural differences between Kuwait and Egypt.