THEORETICAL-CONCEPTUAL FOUNDATIONS OF THE COLLECTIVISM– INDIVIDUALISM CULTURAL DIMENSION AND ITS MECHANISMS OF INFLUENCE ON ECONOMIC DEVELOPMENT

Abstract

This article analyzes the theoretical-conceptual foundations of the collectivism–individualism cultural dimension and its mechanisms of influence on economic development within the framework of contemporary social sciences. The study demonstrates that collectivism and individualism should be understood not merely as opposing value orientations, but also as multidimensional and dynamic cultural systems shaping psychological self-construals, behavioral patterns, social interactions, and mechanisms of institutional coordination. By systematizing classical and contemporary theoretical approaches, the article argues that collectivism–individualism should be interpreted not as a static binary model, but as an adaptive cultural structure transformed in response to changing socioeconomic conditions. It is further shown that the influence of this cultural dimension on economic development is realized indirectly through institutional quality, innovation, entrepreneurship, risk behavior, family structures, social capital, and trust relations, thereby shaping different models of economic coordination and long-term development trajectories. The scientific novelty of the article lies in conceptualizing collectivism–individualism as a multilevel and transformable cultural mechanism linking micro-level individual behavior with macro-level institutional and economic processes, as well as in presenting a dynamic analytical approach integrating psychological, institutional, and socio-economic mechanisms within a unified theoretical framework.