Untangling the Web of Relationships Between Wealth, Culture, and Global Software Piracy Rates: A Path Model

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.