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Article
Publication date: 14 May 2021

Hui Li, Lei Xu and Youqing Fan

The purpose of this paper is to explore mechanisms of cultural distance in the base of Chinese Service Multi-National Enterprise (MNE) settings. When attempting to enter…

Abstract

Purpose

The purpose of this paper is to explore mechanisms of cultural distance in the base of Chinese Service Multi-National Enterprise (MNE) settings. When attempting to enter overseas markets, many service MNEs face challenges caused by the cultural distance between the home and host countries. Culture distance attracts much attention in academia and industry. However, there are few empirical works to examine how cultural distance affects customer orientation strategies in a global supply chain. This paper aims to answer the following research question: How is the effect of cultural distance on customer acquisition and customer retention strategies, and the effect of customer orientation strategies on the performance of service-oriented MNEs controlled by Chinese capital along the Belt and Road Initiative?

Design/methodology/approach

This paper examines the effect of cultural distance on the customer acquisition strategy and customer retention strategy, and the effect of customer orientation strategies on the performance of Chinese Service MNEs. A large-scale empirical study of Chinese Service MNEs operating in overseas markets is performed and questionnaires were distributed and collected. This paper uses Hofstede's method (Hofstede, 2010), Schwartz's method (Schwartz, 2003) and House et al.'s method (House et al., 2004) to calculate cultural distance. By using each kind of method, this study calculates the absolute culture distance and relative culture distance respectively.

Findings

The results suggest that cultural distance negatively affects customer orientation strategy, customer acquisition strategy positively affects performance and the interaction of customer acquisition and customer retention positively affects performance.

Research limitations/implications

This study aims to contribute to the existing literature with a more fine-grained understanding of the inclusion of customer orientation strategy of Chinese Service MNEs in global supply chains.

Practical implications

The findings outline several important implications that Chinese Service MNEs seeking to expand to overseas markets.

Originality/value

This paper contributes a novel, combined perspective of culture distance and customer orientation strategy.

Details

Cross Cultural & Strategic Management, vol. 28 no. 3
Type: Research Article
ISSN: 2059-5794

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Book part
Publication date: 5 July 2016

Pankaj C. Patel and David R. King

The globalization of knowledge has driven an increased emphasis on cross-border, high-technology acquisitions where a target firm in a technology industry is acquired by a…

Abstract

The globalization of knowledge has driven an increased emphasis on cross-border, high-technology acquisitions where a target firm in a technology industry is acquired by a firm in another nation. However, learning depends on similarity of knowledge, and we find that needed similarity can be provided by either technology or culture. As a result, firms can learn from acquiring targets at increasing cultural distance or at increasing technological distance, but not both. We find an interaction where acquisitions made at longer cultural distances and less technological distance, and acquisitions at shorter cultural distances and greater technological distance improve financial performance. This means technological distance and cultural distance are substitutes or represent a trade-off where improved acquisition performance depends on having commonality (low distance) for one of the variables.

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Article
Publication date: 7 April 2021

Ying Zhang, Yuran Li, Mark Frost, Shiyu Rong, Rong Jiang and Edwin T.C. Cheng

This paper aims to examine the critical role played by cultural flow in fostering successful expatriate cross-border transitions.

Abstract

Purpose

This paper aims to examine the critical role played by cultural flow in fostering successful expatriate cross-border transitions.

Design/methodology/approach

The authors develop and test a model on the interplay among cultural intelligence, organizational position level, cultural flow direction and expatriate adaptation, using a data set of 387 expatriate on cross-border transitions along the Belt & Road area.

Findings

The authors find that both organizational position level and cultural flow moderate the relationship between cultural intelligence and expatriate adaptation, whereby the relationship is contingent on the interaction of organizational position status and assignment directions between high power distance and low power distance host environments.

Originality/value

Previous research has shown that higher levels of cultural intelligence are positively related to better expatriate adaptation. However, there is a lack of research on the effect of position difference and cultural flow on such relationship. Our study is among the first to examine how the interaction between cultural flow and organizational position level influences the cultural intelligence (CI) and cultural adjustment relationship in cross-cultural transitions.

Details

Cross Cultural & Strategic Management, vol. 28 no. 2
Type: Research Article
ISSN: 2059-5794

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Article
Publication date: 9 April 2021

Mike Szymanski, Ivan Valdovinos and Evodio Kaltenecker

This study aims to examine the relationship between cultural distances between countries and their scores in the Corruption Perception Index (CPI), which is the most…

Abstract

Purpose

This study aims to examine the relationship between cultural distances between countries and their scores in the Corruption Perception Index (CPI), which is the most commonly used measure of corruption in international business (IB) research.

Design/methodology/approach

The authors applied fixed-effect (generalized least squares) statistical modeling technique to analyze 1,580 year-country observations.

Findings

The authors found that the CPI score is determined to a large extent by cultural distances between countries, specifically the distance to the USA and to Denmark.

Research limitations/implications

CPI is often used as a sole measure of state-level corruption in IB research. The results show that the measure is significantly influenced by cultural differences and hence it should be applied with great caution, preferably augmented with other measures.

Originality/value

To the best of the authors’ knowledge, this is the first study to look at cultural distances as determinants of CPI score. The authors empirically test whether the CPI is culturally biased.

Details

critical perspectives on international business, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1742-2043

Keywords

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Article
Publication date: 4 July 2018

Davor Vlajcic, Giacomo Marzi, Andrea Caputo and Marina Dabic

The purpose of this paper is to investigate the ways in which the geographical distance between headquarters and subsidiaries moderates the relationship between cultural

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Abstract

Purpose

The purpose of this paper is to investigate the ways in which the geographical distance between headquarters and subsidiaries moderates the relationship between cultural intelligence and the knowledge transfer process.

Design/methodology/approach

A sample of 103 senior expatriate managers working in Croatia from several European and non-European countries was used to test the hypotheses. Data were collected using questionnaires, while the methodology employed to test the relationship between the variables was partial least square. Furthermore, interaction-moderation effect was utilized to test the impact of geographical distance and, for testing control variables, partial least square multigroup analysis was used.

Findings

Cultural intelligence plays a significant role in the knowledge transfer process performance. However, geographical distance has the power to moderate this relationship based on the direction of knowledge transfer. In conventional knowledge transfer, geographical distance has no significant impact. On the contrary, data have shown that, in reverse knowledge transfer, geographical distance has a moderately relevant effect. The authors supposed that these findings could be connected to the specific location of the knowledge produced by subsidiaries.

Practical implications

Multinational companies should take into consideration that the further away a subsidiary is from the headquarters, and the varying difference between cultures, cannot be completely mitigated by the ability of the manager to deal with cultural differences, namely cultural intelligence. Thus, multinational companies need to allocate resources to facilitate the knowledge transfer between subsidiaries.

Originality/value

The present study stresses the importance of cultural intelligence in the knowledge transfer process, opening up a new stream of research inside these two areas of research.

Details

Business Process Management Journal, vol. 25 no. 1
Type: Research Article
ISSN: 1463-7154

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Article
Publication date: 1 February 2016

Ying Zhang and Edward Oczkowski

The expansion of the phenomenon of two-way flow expatriation due to the accelerated process of globalization has resulted in an increasing need for a better understanding…

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2210

Abstract

Purpose

The expansion of the phenomenon of two-way flow expatriation due to the accelerated process of globalization has resulted in an increasing need for a better understanding of cross-cultural transitions. Given the absence of convincing a priori theoretical explanations, as part of an inductive discovery process, the purpose of this paper is to examine the relationships between cultural intelligence (CQ), job position, and cross-cultural adjustment (CCA) for expatriates.

Design/methodology/approach

Explicit consideration is given to uncovering the potential importance of cultural distance asymmetry (CDA) effects. Structural equation modelling techniques are employed to analyse survey data from a two-flow sample of expatriates between Australia and China.

Findings

Results indicate that motivational CQ has a statistically significant effect on CCA. CDA is found to moderate the relationship between job positions and expatriate adjustment, such that the relationship depends on the direction of cultural flow between more and less authoritarian cultural contexts.

Originality/value

These findings discover and highlight the potential importance of identifying the direction of cultural flows of expatriation in understanding successful expatriates’ CCA.

Details

Cross Cultural & Strategic Management, vol. 23 no. 1
Type: Research Article
ISSN: 2059-5794

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Article
Publication date: 18 July 2016

Alain Verbeke and Wenlong Yuan

The aim of this paper is to investigate how multinational enterprise (MNE) subsidiary capabilities are influenced by the firm-specific advantages (FSAs) of the parent…

Abstract

Purpose

The aim of this paper is to investigate how multinational enterprise (MNE) subsidiary capabilities are influenced by the firm-specific advantages (FSAs) of the parent company, as well as by cultural and geographic distance between the home and host country.

Design/methodology/approach

This paper assesses how the effects of the parent FSAs, cultural distance and geographic distance on subsidiary capabilities vary for different value-chain activities, with an empirical application to 60 foreign subsidiaries operating in Canada.

Findings

This paper uncovers distinct, three-way interaction effects among parent-level FSAs, cultural distance and geographic distance for upstream versus downstream activities in the value chain.

Originality/value

We find that in special cases, high levels of distance can be positive for MNEs, in terms of driving the creation of stronger subsidiary capabilities.

Details

Multinational Business Review, vol. 24 no. 2
Type: Research Article
ISSN: 1525-383X

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Article
Publication date: 5 August 2021

Li Huang, Qingyan Zheng, Xin Yin, Mingzhi Luo and Yang Yang

Some researchers have found that disasters may have a “blessing in disguise effect” that some disaster sites transformed into more popular tourism destinations; however…

Abstract

Purpose

Some researchers have found that disasters may have a “blessing in disguise effect” that some disaster sites transformed into more popular tourism destinations; however, no studies have analyzed the heterogeneity of the “blessing in disguise effect”. This paper aims to explore and determine the effect of cultural distance on international inbound tourist arrivals to a post-disaster tourist destination that could explain this heterogeneous phenomenon.

Design/methodology/approach

This study used a threshold regression model and a differences-in-differences (DID) approach to analyze 2000–2016 international tourist arrival data from 13 main origin countries to Sichuan Province before and after the 2008 Wenchuan Earthquake in China.

Findings

The effect of cultural distance on post-disaster inbound arrivals from the various origin countries followed a non-linear U-shaped “double-edged sword” pattern rather than displaying a simple linear relationship. Most notably, the disaster appeared to have a more positive effect on arrivals from countries with larger cultural distances, while the effect on arrivals from countries with shorter cultural distances was negative.

Originality/value

This study found that cultural distance could explain the heterogeneous “blessing in disguise” phenomenon, and it had both positive and negative impacts on tourism destination recovery; that is, a definite “double-edged sword effect” of cultural distance was found, which could help destination marketing organizations and management departments to design appropriately targeted marketing for post-disaster tourism destination recovery.

研究目的

些研究人员发现, 灾难可能会产生“因祸得福效应”, 即一些灾难现场变成了更受欢迎的旅游目的地。然而, 目前还没有研究分析这种“因祸得福效应”的异质性。本研究旨在探讨文化距离对灾后旅游目的地的国际入境旅游流的影响, 从而解释这种异质性现象。

研究设计/方法

本文采用门槛回归模型和双重差分法(DID)分析了2008年汶川地震发生前后(2000–2016年)来自13个主要来源国到中国四川省旅游的国际入境旅游流数据。

结果

文化距离对灾后客源国的入境旅游人数的影响呈现非线性的U型“双刃剑”模式, 而不是简单的线性关系。最值得注意的是, 灾难似乎对来自文化距离较大的客源国的游客人数产生了更积极的影响, 而对来自文化距离较短的客源国的游客人数产生了消极的影响。

原创性/价值

本研究发现, 文化距离可以解释异质性的“因祸得福”现象, 文化距离对旅游目的地恢复既有积极影响, 也有消极影响, 即文化距离具有明确的“双刃剑效应”。这可以帮助旅游目的地的灾后恢复设计合理的、有针对性的营销策略和恢复政策。

Propósito

Algunos investigadores han encontrado que los desastres pueden tener la “bendición del efecto disfraz” de que algunos sitios de desastre se transformen en destinos turísticos más populares;Sin embargo, ningún estudio ha analizado la heterogeneidel “efecto de bendición disfrazado”.El objetivo de este estudio es explorar y determinar el efecto de la distancia cultural en los flujos turísticos internacionales hacia un destino turístico después del desastre, lo que podría explicar este fenómeno heterogéneo.

Diseño/metodología/enfoque

se empleun modelo de regresión de umbral y un enfoque de diferencias en diferencias (DID) para analizar los datos de llegada de turistas internacionales de 2000–2016 de trece países de origen principal A la provincia de Sichuan antes y después del terremoto de Wenchuan de 2008 en China.

Conclusiones

el efecto de la distancia cultural en las llegde los diversos países de origen después del desastre siguió un patrón de “espada de doble filo” no lineal en forma de u, en lugar de mostrar una relación lineal simple.Más notablemente, el desastre pareció tener un efecto más positivo en las llegde países con distancias culturales más grandes, mientras que el efecto en las llegde países con distancias culturales más cortas fue negativo.

Originalidad/valor

este estudio encontró que la distancia cultural podría explicar el heterogéneo fenómeno de la “bendición disfrazada” y que tenía impactos tanto positivos como negativos en la recuperación de un destino turístico;Es decir, se encontró un “efecto de doble filo” de la distancia cultural, que podría ayudar a las organizaciones de comercialización de destinos turísticos y a los departamentos de administración a diseñar estrategias de comercialización dirigidas adecuadamente para la recuperación de destinos turísticos después del desastre.

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Article
Publication date: 4 August 2021

Ming Ning Xiong, Tao Wang and Peng Zhao

Based on the transaction cost theory, this paper aims to investigate the impact of cultural distance on international strategic alliance formation and its underlying mechanisms.

Abstract

Purpose

Based on the transaction cost theory, this paper aims to investigate the impact of cultural distance on international strategic alliance formation and its underlying mechanisms.

Design/methodology/approach

This paper uses the investment of foreign firms in the Chinese Venture Capital market as an empirical background, Obtaining VC data from Zero2IPO Private Equity, CVsource Investment Database (2001–2015). This paper chooses the Logit regression method, according to Lind’s three-step method to test the inverted U-shaped relationship.

Findings

The empirical analysis of foreign venture capital firms invested in China revealed that there is an inverted U-shaped relationship between cultural distance and the possibility of international strategic alliances. This relationship is the result of two opposing mechanisms, which are the need and the feasibility of international strategic alliances. In addition, this study further examined the moderating effects of social embeddedness and social reputation, revealing the boundary effects on the complex relationship between cultural distance and possible international strategic alliance formation.

Originality/value

This study focuses on cultural difference, which is a key factor leading to a firm’s transaction costs. Based on the transaction cost theory, this paper investigates the impact of cultural distance on international strategic alliance formation and its underlying mechanisms.

Details

Nankai Business Review International, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2040-8749

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Book part
Publication date: 2 September 2010

Rian Drogendijk and Lena Zander

What we know is that the concept of cultural distance is frequently used, hotly debated and for many intuitively appealing. Suffering from a series of illusionary…

Abstract

What we know is that the concept of cultural distance is frequently used, hotly debated and for many intuitively appealing. Suffering from a series of illusionary properties, it is argued to have outlived its usefulness. What we need to know is how to conceptualize the complexity of culture as a multi-dimensional, multi-level concept, taking context into account to measure quality rather than quantity (or distance). It is our ambition to do justice to the idea that cultural diversity not only leads to friction or problem creation, but also to enrichment and to generation of solutions. We discuss cultural conceptualizations and suggest cultural profiling and cultural positioning as alternative ways of comparing and contrasting critical cultural differences.

Details

The Past, Present and Future of International Business & Management
Type: Book
ISBN: 978-0-85724-085-9

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