Moores (2010)

Source Details

Moores (2010)
Title:	Untangling the Web of Relationships Between Wealth, Culture, and Global Software Piracy Rates: A Path Model
Author(s):	Moores, T. T.
Year:	2010
Citation:	Moores, Trevor T. (2011). Untangling the Web of Relationships between Wealth, Culture, and Global Software Piracy Rates: A Path Model. International Comparisons of Information Communication Technologies: Advancing Applications: Advancing Applications : 110.
Link(s):	Definitive
Key Related Studies:	Hofstede and Hofstede (2005) BSA (2003) World Bank (2008) Bae and Choi (2006)
Discipline:	D12: Consumer Economics: Empirical Analysis F62: Macroeconomic Impacts K42: Illegal Behavior and the Enforcement of Law O34: Intellectual Property and Intellectual Capital
Linked by:

About the Data
Data Description:	The Business Software Alliance (software piracy rates for 114 countries from 2002 to 2007) and the World Bank (gross national income data for 227 countries) gather world economic data on countries' software piracy rate, treating the globe as a single market, with a heavier influence by larger markets.
Data Type:	Secondary data
Secondary Data Sources:	Business Software Alliance World Bank
Data Collection Methods:	Quantitative data/text mining Document Research
Data Analysis Methods:	Regression Analysis
Industry(ies):	Software publishing
Country(ies):	Global
Cross Country Study?:	Yes
Comparative Study?:	No
Literature review?:	No
Government or policy study?:	No
Time Period(s) of Collection:	2002-2007
Funder(s):

Abstract

This article examines the relationship between Hofstede’s national culture indices (IDV, PSI, MAS, and UAI), economic wealth (GNI), and national software piracy rates (SPR). Although a number of studies have already examined this relationship, the contribution of this article is two-fold. First, we develop a path model that highlights not only the key factors that promote software piracy, but also the inter-relationships between these factors. Second, most studies have used the dataset from the pre-2003 methodology which only accounted for business software and did not take into account local market conditions. Using the latest dataset and a large sample of countries (n=61) we find there is an important triadic relationship between PDI, IDV, and GNI that explains over 80% of the variance in software piracy rates. Implications for combating software piracy are discussed.

Main Results of the Study

This article seeks to explain the differing software piracy rates, especially amongst economically developed countries by examining culture and other correlated factors. Hofstede's four factor cultural model measures PDI (power distance index, the accepted societal the power gap), masculinity-feminity (MAS), uncertainty avoidance index (UAI), and IDV (individual-collectivism) are examined to determine if and how culture influences in for higher software piracy rates. Even taking all into account, low GDP is still the most predictive factor in software piracy, which is significantly and positively correlated with IDV and PDI. However, culture and wealth are interrelated and pose complicated challenges to reducing software piracy rates.

Policy Implications as Stated By Author

To decrease software piracy rates, companies must provide market-sensitive pricing coupled with advertising aimed at high PDI (power distance index, to lessen societal the power gap) and low IDV (individual-collectivism, to increase individuality).

Coverage of Study

Coverage of Fundamental Issues

Issue	Included within Study
Relationship between protection (subject matter/term/scope) and supply/economic development/growth/welfare
Relationship between creative process and protection - what motivates creators (e.g. attribution; control; remuneration; time allocation)?
Harmony of interest assumption between authors and publishers (creators and producers/investors)
Effects of protection on industry structure (e.g. oligopolies; competition; economics of superstars; business models; technology adoption)
Understanding consumption/use (e.g. determinants of unlawful behaviour; user-generated content; social media)

Coverage of Evidence Based Policies

Issue	Included within Study
Nature and Scope of exclusive rights (hyperlinking/browsing; reproduction right)
Exceptions (distinguish innovation and public policy purposes; open-ended/closed list; commercial/non-commercial distinction)
Mass digitisation/orphan works (non-use; extended collective licensing)
Licensing and Business models (collecting societies; meta data; exchanges/hubs; windowing; crossborder availability)
Fair remuneration (levies; copyright contracts)
Enforcement (quantifying infringement; criminal sanctions; intermediary liability; graduated response; litigation and court data; commercial/non-commercial distinction; education and awareness)

Datasets

Sample size:	114
Level of aggregation:	Country
Period of material under study:	2002-2007