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Cultural distance and the performance of international joint ventures: a critical assessment of model specifications and variable measurement

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  • Jeppe Christoffersen
  • Steven Globerman
  • Bo Bernhard Nielsen

Abstract

This study provides a critical summary and assessment of the empirical literature on the relationship between cultural distance and the performance of international joint ventures (IJVs) based on studies published over the period 1993-2008. The existing literature reports inconsistent and largely statistically insignificant findings for the relationship. We add to this literature by analysing some 63 empirical studies of the cultural distance - IJV performance linkage. We further confirm the absence of any consistent and statistically significant linkage, despite strong conceptual arguments for anticipating a strong empirical relationship. We also evaluate different proposed explanations of the weak empirical findings in the literature and find some mixed support for these explanations. We conclude with some suggestions for improving the modelling of the cultural distance - IJV performance relationship.

Suggested Citation

  • Jeppe Christoffersen & Steven Globerman & Bo Bernhard Nielsen, 2013. "Cultural distance and the performance of international joint ventures: a critical assessment of model specifications and variable measurement," International Journal of Human Rights and Constitutional Studies, Inderscience Enterprises Ltd, vol. 3(1), pages 93-119.
    • Handle: RePEc:ids:ijhrcs:v:3:y:2013:i:1:p:93-119
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    Cited by:

    1. Castellões, Bernardo & Silva-Rêgo, Bernardo & Dib, Luís Antônio, 2023. "Understanding divestment from an Uppsala school perspective," Journal of International Management, Elsevier, vol. 29(5).
    2. Nakul Parameswar & Sanjay Dhir & Sushil, 2020. "Interpretive Ranking of Choice of Interaction of Parent Firms Post-International Joint Venture Termination using TISM-IRP," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 21(1), pages 1-16, March.
    3. Pablo Cardona & Ivan Malbašić & Carlos Rey, 2018. "Institutions, paradoxes, and compensation logics: evidence from corporate values of the largest Chinese and US companies," Asia Pacific Business Review, Taylor & Francis Journals, vol. 24(5), pages 602-619, October.

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