How much distance do we need? Revisiting the “National cultural distance paradox”

被引:0
|
作者
Huanglin Wang
Jean-Louis Schaan
机构
[1] University of Western Ontario,Richard Ivey School of Business
[2] University of Western Ontario,J. Armand Bombardier Chair in Global Management, Richard Ivey School of Business
来源
关键词
Cultural Distance; Entry Mode; Performance; Multinationals; National Cultural Distance Paradox; Logistic Regression;
D O I
暂无
中图分类号
学科分类号
摘要
Abstract and Key ResultsThis study revisits the “national cultural distance paradox” based on a sample of Japanese foreign direct investment (FDI) in 53 countries and regions over 30 years. Earlier studies on cultural distance assumed linear relationships and showed mixed results. We examine nonlinear relationships between cultural distance (CD) and entry mode and between CD and performance.Results suggest that there is a nonlinear (inverted U-shape) relationship between CD and the choice of a joint venture as the preferred market entry mode, and between CD and performance.We also found that the relationship between CD and performance is moderated by entry mode choice: the nonlinear relationship between CD and performance is stronger for joint ventures than for wholly owned subsidiaries.
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页码:263 / 278
页数:15
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