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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.

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.

Suggested Citation

  • Magnusson, Peter & Baack, Daniel W. & Zdravkovic, Srdan & Staub, Karin M. & Amine, Lyn S., 2008. "Meta-analysis of cultural differences: Another slice at the apple," International Business Review, Elsevier, vol. 17(5), pages 520-532, October.
    • Handle: RePEc:eee:iburev:v:17:y:2008:i:5:p:520-532
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