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Meta-analysis of cultural differences: Another slice at the apple

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  • Magnusson, Peter
  • Baack, Daniel W.
  • Zdravkovic, Srdan
  • Staub, Karin M.
  • Amine, Lyn S.
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    Abstract

    We present a meta-analysis of the effects of cultural differences on multinational firms' entry strategy and performance. Replicating previous studies, we find only a weak negative relationship between cultural differences and both entry strategy and performance. However, when the moderating effects of time, MNE origin, and cultural-differences operationalization are taken into account, an interesting picture emerges which presents new insights. The relationships for entry strategy and firm performance are consistently moving in opposite directions across all three moderators. This suggests that cultural differences still have a strong influence on MNE activity and it emphasizes the continued importance of developing cross-culturally competent managers.

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    Bibliographic Info

    Article provided by Elsevier in its journal International Business Review.

    Volume (Year): 17 (2008)
    Issue (Month): 5 (October)
    Pages: 520-532

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    Handle: RePEc:eee:iburev:v:17:y:2008:i:5:p:520-532

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    Related research

    Keywords: Cultural distance Entry strategy Firm performance Meta-analysis Psychic distance;

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    1. James P Johnson & Tomasz Lenartowicz & Salvador Apud, 2006. "Cross-cultural competence in international business: toward a definition and a model," Journal of International Business Studies, Palgrave Macmillan, vol. 37(4), pages 525-543, July.
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    Cited by:
    1. Roth, Kendall & Kostova, Tatiana & Dakhli, Mourad, 2011. "Exploring cultural misfit: Causes and consequences," International Business Review, Elsevier, vol. 20(1), pages 15-26, February.
    2. Aggarwal, Raj & Goodell, John W., 2010. "Financial markets versus institutions in European countries: Influence of culture and other national characteristics," International Business Review, Elsevier, vol. 19(5), pages 502-520, October.
    3. Parente, Ronaldo C. & Baack, Daniel W. & Hahn, Eugene D., 2011. "The effect of supply chain integration, modular production, and cultural distance on new product development: A dynamic capabilities approach," Journal of International Management, Elsevier, vol. 17(4), pages 278-290.
    4. Buck, Trevor & Liu, Xiaohui & Ott, Ursula, 2010. "Long-term orientation and international joint venture strategies in modern China," International Business Review, Elsevier, vol. 19(3), pages 223-234, June.
    5. Freeman, Susan & Lindsay, Sarah, 2012. "The effect of ethnic diversity on expatriate managers in their host country," International Business Review, Elsevier, vol. 21(2), pages 253-268.
    6. Ellis, Paul D., 2010. "International trade intermediaries and the transfer of marketing knowledge in transition economies," International Business Review, Elsevier, vol. 19(1), pages 16-33, February.
    7. Hutzschenreuter, Thomas & Horstkotte, Julian, 2013. "Performance effects of international expansion processes: The moderating role of top management team experiences," International Business Review, Elsevier, vol. 22(1), pages 259-277.
    8. Agndal, Henrik & Chetty, Sylvie & Wilson, Heather, 2008. "Social capital dynamics and foreign market entry," International Business Review, Elsevier, vol. 17(6), pages 663-675, December.
    9. Awang-Rozaimie Awang-Shuib Author_Email: aras09_nu0090@student.usm.my & Brandon Oii & Anees Janee Ali, 2011. "Multicultural Awareness For Better Ways Of Life: A Scale Validation Among Malaysian Undergraduate Students," 2nd International Conference on Business and Economic Research (2nd ICBER 2011) Proceeding 2011-234, Conference Master Resources.

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