An institutional approach to cross-national distance
AbstractCross-national distance is a key concept in the field of management. Previous research has conceptualized and measured cross-national differences mostly in terms of dyadic cultural distance, and has used the Euclidean approach to measuring it. In contrast, our goal is to disaggregate the construct of distance by proposing a set of multidimensional measures, including economic, financial, political, administrative, cultural, demographic, knowledge, and global connectedness as well as geographic distance. We ground our analysis and choice of empirical dimensions on institutional theories of national business, governance, and innovation systems. In order to overcome the methodological limitations of the Euclidean approach, we calculate dyadic distances using the Mahalanobis method, which is scale-invariant and takes into consideration the variance–covariance matrix. We empirically analyze four different foreign expansion choices of US companies to illustrate the importance of disaggregating the distance construct and the usefulness of our distance calculations, which we make freely available to managers and scholars.
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Bibliographic InfoArticle provided by Palgrave Macmillan in its journal Journal of International Business Studies.
Volume (Year): 41 (2010)
Issue (Month): 9 (December)
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- Schmitt, Alexander & Van Biesebroeck, Jo, 2013.
"Proximity strategies in outsourcing relations: the role of geographical, cultural and relational proximity in the European automotive industry,"
Open Access publications from Katholieke Universiteit Leuven
urn:hdl:123456789/390851, Katholieke Universiteit Leuven.
- Alexander Schmitt & Johannes Van Biesebroeck, 2013. "Proximity strategies in outsourcing relations: The role of geographical, cultural and relational proximity in the European automotive industry," Journal of International Business Studies, Palgrave Macmillan, vol. 44(5), pages 475-503, June.
- Alexander SCHMITT & Johannes VAN BIESEBROECK, 2013. "Proximity strategies in outsourcing relations: the role of geographical, cultural and relational proximity in the European automotive industry," Center for Economic Studies - Discussion papers ces13.02, Katholieke Universiteit Leuven, Centrum voor Economische Studiën.
- Barros, Henrique M., 2011. "The Effects of Innovation Partnership, Foreign Ownership and Enhanced Management Practices on the Use of Patents in Brazilian Manufacturing," Insper Working Papers wpe_255, Insper Working Paper, Insper Instituto de Ensino e Pesquisa.
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