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Strategic decision-making processes in internationalization: Does national culture of the focal firm matter?

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  • Dimitratos, Pavlos
  • Petrou, Andreas
  • Plakoyiannaki, Emmanuella
  • Johnson, Jeffrey E.

Abstract

We seek to examine how national culture values affect strategic decision-making processes (SDMPs) of internationalized firms. We employ the cultural relativity theory to explain how firms from different countries make international decisions. We advance hypotheses regarding the associations between three SDMP dimensions and three national culture aspects, notably the relationships between hierarchical decentralization and power distance; lateral communication and individualism; and, formalization and uncertainty avoidance. We present evidence from a large-scale study conducted on 528 internationalized small and medium-sized firms based in the USA, UK, Greece and Cyprus. The findings support our hypotheses with the exception of that concerning lateral communication and individualism. The national culture of the focal firm matters as far as SDMPs in internationalization are concerned. Implications and further research directions are discussed.

Suggested Citation

  • Dimitratos, Pavlos & Petrou, Andreas & Plakoyiannaki, Emmanuella & Johnson, Jeffrey E., 2011. "Strategic decision-making processes in internationalization: Does national culture of the focal firm matter?," Journal of World Business, Elsevier, vol. 46(2), pages 194-204, April.
  • Handle: RePEc:eee:worbus:v:46:y:2011:i:2:p:194-204
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    Cited by:

    1. Ji, Junzhe & Dimitratos, Pavlos, 2013. "Confucian dynamism and Dunning's framework: Direct and moderation associations in internationalized Chinese private firms," Journal of Business Research, Elsevier, vol. 66(12), pages 2375-2382.
    2. Dietmar Sternad, 2012. "Adaptive Strategies in Response to the Economic Crisis: A Cross-Cultural Study in Austria and Slovenia," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 10(3 (Fall)), pages 257-282.
    3. Antonin Ricard & Ekaterina Pennec & Emmanuelle Reynaud, 2016. "Representation as a driver of internationalization: The case of a singular Russian SME," Journal of International Entrepreneurship, Springer, vol. 14(1), pages 96-120, March.
    4. Gnizy, Itzhak & Cadogan, John W. & Oliveira, João S. & Nizam, Asmat, 2017. "The empirical link between export dispersion and export performance: A contingency-based approach," International Business Review, Elsevier, vol. 26(2), pages 239-249.
    5. Lee, Sang-Gun & Trimi, Silvana & Kim, Changsoo, 2013. "The impact of cultural differences on technology adoption," Journal of World Business, Elsevier, vol. 48(1), pages 20-29.
    6. repec:eco:journ3:2017-03-31 is not listed on IDEAS
    7. Musso, Fabio & Francioni, Barbara, 2012. "The Influence Of Decision-Maker Characteristics On The International Strategic Decision-Making Process: An SME Perspective," MPRA Paper 50063, University Library of Munich, Germany.
    8. Jia, Fu & Lamming, Richard & Sartor, Marco & Orzes, Guido & Nassimbeni, Guido, 2014. "Global purchasing strategy and International Purchasing Offices: Evidence from case studies," International Journal of Production Economics, Elsevier, vol. 154(C), pages 284-298.
    9. Lewellyn, Krista B. & Bao, Shuji ‘Rosey’, 2015. "R&D Investment in the Global Paper Products Industry: A Behavioral Theory of the Firm and National Culture Perspective," Journal of International Management, Elsevier, vol. 21(1), pages 1-17.
    10. Dimitratos, Pavlos & Buck, Trevor & Fletcher, Margaret & Li, Nicolas, 2016. "The motivation of international entrepreneurship: The case of Chinese transnational entrepreneurs," International Business Review, Elsevier, vol. 25(5), pages 1103-1113.
    11. Dejun Tony Kong & Roger Volkema, 2016. "Cultural Endorsement of Broad Leadership Prototypes and Wealth as Predictors of Corruption," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 127(1), pages 139-152, May.
    12. Child, John & Hsieh, Linda H.Y., 2014. "Decision mode, information and network attachment in the internationalization of SMEs: A configurational and contingency analysis," Journal of World Business, Elsevier, vol. 49(4), pages 598-610.
    13. repec:spr:manint:v:54:y:2014:i:4:d:10.1007_s11575-014-0211-x is not listed on IDEAS

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