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Corporate Spirit as Secret Ingredient. Proximity in Corporate Culture as Moderating Success Factor in Collaborations

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  • Cathrin Sollner

Abstract

Successful collaborations between organizations lead to effectiveness and economic growth. Accordingly, collaborating partners strive to optimize factors contributing to collaboration performance. Earlier research on collaboration offers a variety of success factors. However, there are still aspects, of which the effects are not completely clarified, as in the case of distance between collaborating organizations due to corporate culture. While the literature claims that economic activities are culturally embedded, investigations on the contribution of distance in corporate culture on economic interactions’ success remain superficial and unclear. Addressing this deficiency, the present paper investigates direct and indirect effects of distance in corporate culture on collaboration performance. Empirical evidence reveals a negative direct effect of distance in corporate culture. At the same time, as a moderator, high distance compensates for the negative effect of social distance, while proximity compensates for the negative effect of cognitive distance.

Suggested Citation

  • Cathrin Sollner, 2021. "Corporate Spirit as Secret Ingredient. Proximity in Corporate Culture as Moderating Success Factor in Collaborations," Papers in Evolutionary Economic Geography (PEEG) 2137, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Dec 2021.
    • Handle: RePEc:egu:wpaper:2137
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    File URL: http://econ.geo.uu.nl/peeg/peeg2137.pdf
    File Function: Version December 2021
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    More about this item

    Keywords

    collaboration performance; proximities; proximity in corporate culture; Hofstede; Germany;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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