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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.

Article
Publication date: 20 December 2021

Okharedia Goodheart Akhimien and Simon Ayo Adekunle

The purpose of this study is to investigate the relationship between cultural distance and psychological adjustment of expatriates in Nigeria and perceived social supports…

Abstract

Purpose

The purpose of this study is to investigate the relationship between cultural distance and psychological adjustment of expatriates in Nigeria and perceived social supports moderating the relationship.

Design/methodology/approach

The study used a cross-sectional survey research design. Data were collected through 236 validly filled questionnaires by expatriates working in different industries in Nigeria. The research variables were measured using appropriate validated scales developed by different experts. Data collected were analyzed using frequency, percentages, mean and standard deviation. Correlation and regression analyses were conducted to establish the relationships among the variables.

Findings

The study found that the distance between expatriates’ home and Nigeria on each of the dimensions of cultural values: power distance, individualism, masculinity, uncertainty avoidance cultural value, long-term orientation and indulgence negatively influence the psychological adjustment of the expatriates in Nigeria. The study demonstrated that the larger the distance between expatriates’ home and Nigeria's cultural values, the larger the difficulties in the psychological adjustment of expatriates in the country.

Practical implications

This study provides useful insights and a better understanding to both present and future global human resource practitioners, multinational organizations, international institutions and local organizations operating in Nigeria with a global mindset on the cultural profiles of expatriates that are critical to adjust to working, social interactions and living environments in Nigeria.

Originality/value

It provides practical guidance to global human resource practitioners and employers on dimensions of cultural values distance between Nigeria and the home countries of expatriates that should be considered when deciding on, searching for, selecting, recruiting and relocating expatriates to work and live in Nigeria.

Details

International Journal of Organizational Analysis, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1934-8835

Keywords

Article
Publication date: 8 December 2021

Ying Zhu, Jun Li, Lei Wang and Qiqi Xu

Based on an ensemble sample of multinational enterprises (MNEs), this study aims to explore the effect of the interactions between Chinese parent firms’ knowledge…

Abstract

Purpose

Based on an ensemble sample of multinational enterprises (MNEs), this study aims to explore the effect of the interactions between Chinese parent firms’ knowledge (including both technological and marketing knowledge), equity control and cultural distance on the business performance of their overseas branches under different subsidiary roles.

Design/methodology/approach

The study uses a data set compiled from 138 listed Chinese manufacturing enterprises and their 231 overseas subsidiaries to test the hypotheses regarding the interactive effects of transferred knowledge types and the subsidiary’s control mode.

Findings

The empirical results suggest that the moderating effects of equity control and cultural distance vary with the types of the parent firm’s knowledge and subsidiary roles. Specifically, equity control positively regulates the relationship between technological knowledge and subsidiary performance while negatively moderating the relationship between marketing knowledge and subsidiary performance. Cultural distance appears to negatively regulate the relationship between marketing knowledge and subsidiary performance. This binary relationship is shown to be more significant for the implementer subsidiaries.

Originality/value

Drawing on the literature on inter-firm governance and knowledge-induced innovation mechanisms, the authors develop a theoretical contingency framework to derive some managerial implications for inter-firm and infra-firm knowledge transfer in light of MNEs’ performance integrity.

Details

Journal of Business & Industrial Marketing, vol. 37 no. 6
Type: Research Article
ISSN: 0885-8624

Keywords

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

Keywords

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

Keywords

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. 18 no. 2
Type: Research Article
ISSN: 1742-2043

Keywords

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

1336

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

Keywords

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…

2341

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

Keywords

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

Keywords

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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