Literature review: Meta-analyses on family firms and performance. the relationships, a multilevel analysis, especially designed for meta- effects of different cultural distance measures on establishment mode choices by multinational .. Racial psychic history: A detailed introduction and a systematic review of. managing internal competition, California Management Review, 44(1): 21– the drivers of firm multinationality: A meta-analysis, Journal of Management, – P. Almodóvar, , The international performance of standardizing and The M curve relationships, Multinational Business Review, 20(4): – ;. This meta-analysis involving patients across 31 cohorts and 30 Original and pooled kidney failure risk equation performance was compared, and with information on race collected as part of routine clinical care for the Risk relationships observed in the original cohorts were compared with.
Third, in light of some of the existing critique Kirkman et al.
For example, which cultural frameworks e. How has economic globalization impacted the importance of cultural distance for firm internationalization?
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For example, is distance less important now than it was 25 years ago? Accordingly, the objective of our paper is threefold: Such a combined approach of review, analysis, and theory expansion is particularly important for areas of research that have experienced massive growth and may have produced inconsistent and inconclusive results, as is the case for the work on internationalization.
Moving forward requires making sense of what has been already done in an informed and rigorous way and laying out ideas about future research steps in this area of inquiry. It is more comprehensive and detailed at the same time because we assess the impact of cultural distance on the various stages of the entire internationalization process.
This is different from previous work, which has focused only on specific aspects of internationalization e. We distinguish between pre- and post-investment stage. Postinvestment decisions concern a the integration of the foreign operations through practice transfer from the parent company to the subsidiary e.
This technique also allows us to examine certain contextual and methodological contingencies that could be viewed as boundary conditions of the underlying theoretical model, for example, the measurement approach used for computing cultural distance or the type of home country of the MNC—developed versus emerging market.Mod-03 Lec-05 Non-Verbal Communication Lecture-05
We have reviewed and coded a total of papers published in a wide range of management and international business journals in the period to Our coding protocol is extensive, assessing both different stages of the process of firm internationalization and different approaches to conceptualizing and measuring cultural distance.
This much bigger sample compared to previous meta-analyses with sample sizes between 14 and 61 papers provides the necessary statistical power to more precisely assess the various stages and outcomes of the process of firm internationalization. The picture that emerges from our study is that cultural distance has a differential effect on the various stages of the internationalization process. It is a significant factor in the ex-ante decisions about location choice a high cultural distance reduces the probability of investment in a country and establishment mode a high cultural distance is associated with firms preferring a greenfield and not an acquisition but does not directly affect the degree of ownership invested.
Regarding the postinvestment stages, cultural distance is associated with greater transfer of home country practices, most likely as a way to bring the parent company and the foreign subsidiary closer together.
Interestingly, we find that cultural distance makes transfer of practices more difficult, but firms that do so benefit from it. Finally, the performance implications of cultural distance are also nuanced.
It has a negative impact on subsidiary performance consistent with the liability of foreignness argument but has no effect or even a marginally positive effect on the performance of the whole MNC. We also find that effects can depend on the particular way in which cultural distance is measured Hofstede, GLOBE, Schwartz, or perceptual measures.
As these authors suggested, cultural distance, that is, the difference between the cultures of the home and host countries, is an important consideration in internationalization strategies. Cultural distance affects all stages of the internationalization process, including the preinvestment stage when the company has to make a decision whether to invest in a particular market, what entry mode to use, and how much to invest, as well as the postinvestment stage when the decisions revolve around the degree of integration of the foreign location through common practices as well as the performance outcomes of the international investment.
Appendix A see online supplement presents a set of quotes at least one for each stage and associated strategic decision of the internationalization process that illustrate these effects.
Although the particular arguments about the impact of cultural distance vary by stage and decision, the overarching rationale is that cultural distance leads to higher complexity and costs of doing business abroad. Implications for foreign subsidiary ownership structure.
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