IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this article

The effect of culture on the responsiveness of firms to mimetic forces: Imitative foreign joint venture entries into China, 1985–2003

Listed author(s):
  • Li, Chengguang
  • Parboteeah, K. Praveen
Registered author(s):

    Institutional theory suggests that firms imitate their peers when deciding to enter a foreign market in order to gain legitimacy and cope with uncertainty. There is little investigation, however, on how home country culture affects a firm's mimetic behavior as a response to institutional influences. To understand culture's role, this paper examines the effect of the cultural environment on mimetic foreign joint venture entries into China. Based on a sample of 1361 international joint venture entries in the 1985–2003 period, we find that the cultural dimensions individualism–collectivism and power distance significantly affect the responsiveness of firms to mimetic forces.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.sciencedirect.com/science/article/pii/S1090951614000510
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by Elsevier in its journal Journal of World Business.

    Volume (Year): 50 (2015)
    Issue (Month): 3 ()
    Pages: 465-476

    as
    in new window

    Handle: RePEc:eee:worbus:v:50:y:2015:i:3:p:465-476
    DOI: 10.1016/j.jwb.2014.08.002
    Contact details of provider: Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/620401/description#description

    Order Information: Postal: http://www.elsevier.com/wps/find/journaldescription.cws_home/620401/bibliographic
    Web: http://www.elsevier.com/wps/find/journaldescription.cws_home/620401/bibliographic

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as
    in new window


    1. Stein, Ernesto & Daude, Christian, 2007. "Longitude matters: Time zones and the location of foreign direct investment," Journal of International Economics, Elsevier, vol. 71(1), pages 96-112, March.
    2. Heather Berry & Mauro F Guillén & Nan Zhou, 2010. "An institutional approach to cross-national distance," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(9), pages 1460-1480, December.
    3. Bruce Kogut & Harbir Singh, 1988. "The Effect of National Culture on the Choice of Entry Mode," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(3), pages 411-432, September.
    4. Peterson, Robert M. & Clay Dibrell, C. & Pett, Timothy L., 2002. "Long- vs. short-term performance perspectives of Western European, Japanese, and U.S. countries: where do they lie?," Journal of World Business, Elsevier, vol. 37(4), pages 245-255, January.
    5. Keith D. Brouthers & Lance Eliot Brouthers, 2003. "Why Service and Manufacturing Entry Mode Choices Differ: The Influence of Transaction Cost Factors, Risk and Trust," Journal of Management Studies, Wiley Blackwell, vol. 40(5), pages 1179-1204, 07.
    6. Holtz-Eakin, Douglas & Joulfaian, David & Rosen, Harvey S, 1994. "Sticking It Out: Entrepreneurial Survival and Liquidity Constraints," Journal of Political Economy, University of Chicago Press, vol. 102(1), pages 53-75, February.
    7. Shi, Yizheng, 2001. "Technological capabilities and international production strategy of firms: the case of foreign direct investment in China," Journal of World Business, Elsevier, vol. 36(2), pages 184-204, July.
    8. Oded Shenkar, 2001. "Cultural Distance Revisited: Towards a More Rigorous Conceptualization and Measurement of Cultural Differences," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 32(3), pages 519-535, September.
    9. Lee, Sang M. & Peterson, Suzanne J., 2000. "Culture, entrepreneurial orientation, and global competitiveness," Journal of World Business, Elsevier, vol. 35(4), pages 401-416, January.
    10. Jane W Lu, 2002. "Intra- and Inter-organizational Imitative Behavior: Institutional Influences on Japanese Firms' Entry Mode Choice," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 33(1), pages 19-37, March.
    11. Deng, Ping, 2009. "Why do Chinese firms tend to acquire strategic assets in international expansion?," Journal of World Business, Elsevier, vol. 44(1), pages 74-84, January.
    12. Taras, Vas & Steel, Piers & Kirkman, Bradley L., 2012. "Improving national cultural indices using a longitudinal meta-analysis of Hofstede's dimensions," Journal of World Business, Elsevier, vol. 47(3), pages 329-341.
    13. Yadong Luo, 1998. "Timing of Investment and International Expansion Performance in China," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 29(2), pages 391-407, June.
    14. Gordon Redding, 2005. "The thick description and comparison of societal systems of capitalism," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(2), pages 123-155, March.
    15. Luthans, Fred & Zhu, Weichun & Avolio, Bruce J., 2006. "The impact of efficacy on work attitudes across cultures," Journal of World Business, Elsevier, vol. 41(2), pages 121-132, June.
    16. Erumban, Abdul Azeez & de Jong, Simon B., 2006. "Cross-country differences in ICT adoption: A consequence of Culture?," Journal of World Business, Elsevier, vol. 41(4), pages 302-314, December.
    17. Bradley L Kirkman & Kevin B Lowe & Cristina B Gibson, 2006. "A quarter century of Culture's Consequences: a review of empirical research incorporating Hofstede's cultural values framework," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(3), pages 285-320, May.
    18. Metcalf, Lynn E. & Bird, Allan & Shankarmahesh, Mahesh & Aycan, Zeynep & Larimo, Jorma & Valdelamar, Dídimo Dewar, 2006. "Cultural tendencies in negotiation: A comparison of Finland, India, Mexico, Turkey, and the United States," Journal of World Business, Elsevier, vol. 41(4), pages 382-394, December.
    19. Li, Jiatao & Yao, Fiona Kun, 2010. "The role of reference groups in international investment decisions by firms from emerging economies," Journal of International Management, Elsevier, vol. 16(2), pages 143-153, June.
    20. Andrew Delios & Ajai S. Gaur & Shige Makino, 2008. "The Timing of International Expansion: Information, Rivalry and Imitation Among Japanese Firms, 1980-2002," Journal of Management Studies, Wiley Blackwell, vol. 45(1), pages 169-195, 01.
    21. Yang, Monica & Hyland, MaryAnne, 2012. "Similarity in Cross-border Mergers and Acquisitions: Imitation, Uncertainty and Experience among Chinese Firms, 1985–2006," Journal of International Management, Elsevier, vol. 18(4), pages 352-365.
    22. Elango, B., 2009. "Minimizing effects of 'liability of foreignness': Response strategies of foreign firms in the United States," Journal of World Business, Elsevier, vol. 44(1), pages 51-62, January.
    23. Raymond Loi & Long Lam & Ka Chan, 2012. "Coping with Job Insecurity: The Role of Procedural Justice, Ethical Leadership and Power Distance Orientation," Journal of Business Ethics, Springer, vol. 108(3), pages 361-372, July.
    24. Chwo-Ming J Yu & Kiyohiko Ito, 1988. "Oligopolistic Reaction and Foreign Direct Investment: The Case of the U.S. Tire and Textiles Industries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(3), pages 449-460, September.
    25. Parboteeah, K. Praveen & Cullen, John B. & Lim, Lrong, 2004. "Formal volunteering: a cross-national test," Journal of World Business, Elsevier, vol. 39(4), pages 431-441, November.
    26. Jan Johanson & Jan-Erik Vahlne, 1977. "The Internationalization Process of the Firm—A Model of Knowledge Development and Increasing Foreign Market Commitments," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 8(1), pages 23-32, March.
    27. Demirbag, Mehmet & Glaister, Keith W. & Tatoglu, Ekrem, 2007. "Institutional and transaction cost influences on MNEs' ownership strategies of their affiliates: Evidence from an emerging market," Journal of World Business, Elsevier, vol. 42(4), pages 418-434, December.
    28. Christine M Chan & Shige Makino & Takehiko Isobe, 2006. "Interdependent behavior in foreign direct investment: the multi-level effects of prior entry and prior exit on foreign market entry," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(5), pages 642-665, September.
    29. Dorfman, Peter & Javidan, Mansour & Hanges, Paul & Dastmalchian, Ali & House, Robert, 2012. "GLOBE: A twenty year journey into the intriguing world of culture and leadership," Journal of World Business, Elsevier, vol. 47(4), pages 504-518.
    30. Luo, Yadong, 2007. "From foreign investors to strategic insiders: Shifting parameters, prescriptions and paradigms for MNCs in China," Journal of World Business, Elsevier, vol. 42(1), pages 14-34, March.
    31. Shane, Scott A., 1992. "Why do some societies invent more than others?," Journal of Business Venturing, Elsevier, vol. 7(1), pages 29-46, January.
    32. Geert Hofstede & Cheryl A Van Deusen & Carolyn B Mueller & Thomas A Charles, 2002. "What Goals Do Business Leaders Pursue? A Study in Fifteen Countries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 33(4), pages 785-803, December.
    33. Child, John & Yan, Yanni, 1999. "Investment and control in international joint ventures: the case of China," Journal of World Business, Elsevier, vol. 34(1), pages 3-15, April.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:eee:worbus:v:50:y:2015:i:3:p:465-476. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.