Attention to human capital has been widely recognized as critical in influencing Foreign Direct Investment (FDI) in host countries. While numerous studies have examined the direct effect of cultural factors on FDI attraction, there remains a notable gap in research exploring the mediating role of national culture dimensions, particularly in the context of Central Africa. Chad, in particular, continues to underperform in leveraging the potential benefits of FDI. This is largely attributed to several structural challenges, including limited human resource capacity. The aim of this study is to examine the mediating role of Hofstede’s cultural dimensions (power distance, uncertainty avoidance, and individualism versus collectivism) in the relationship between human capital and FDI attraction in Chad. Adopting quantitative research design, data were collected using a structured questionnaire. The target respondents included top-level management personnel such as managers, directors, and executives of foreign firms operating in Chad. PLS-SEM was employed to test the hypothesized relationships. The analysis revealed that human capital had no effect on FDI attraction in Chad, whereas national culture dimensions; specifically, power distance, uncertainty avoidance, and individualism versus collectivism significantly mediate the relationship between human capital and FDI attraction in Chad. This study offers several practical implications for policymakers, investors, development agencies, and other stakeholders involved in promoting FDI in Chad and comparable emerging economies.
Published in: 3rd GCC International Conference on Industrial Engineering and Operations Management, Tabuk, Saudi Arabia
Publisher: IEOM Society International
Date of Conference: February 2
-4
, 2026
ISBN: 979-8-3507-6175-7
ISSN/E-ISSN: 2169-8767