Cultural Diversity and the Performance of Multinational Firms
We test the hypothesis that culturally related international diversification will have a positive impact on firm performance and that the opposite will be true for culturally unrelated globalization. Cultural diversity for Fortune 500 firms was used to predict performance over a ten-year period (1985–1994), controlling for several organizational and industry characteristics. Regression tests using nine indicators of cultural diversity revealed no significant cultural effects. Alternate interpretations are offered.© 1997 JIBS. Journal of International Business Studies (1997) 28, 309–335
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Volume (Year): 28 (1997)
Issue (Month): 2 (June)
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