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Cultural Distance and Firm A Meta-Analytical Review and Theoretical Implications pdf

This paper presents the most comprehensive review and meta-analysis of the literature on cultural distance and firm internationalization to date. We analyze the effects of cultural distance on key strategic decisions throughout the entire process of internationalization. For the preinvestment stage, we examine the decisions on where to invest (location choice), how much to invest (degree of ownership), and how to organize the foreign expansion (entry and establishment mode). For the postinvestment stage, we examine the decisions of how to integrate the foreign subsidiary into the organization (transfer of practices) as well as the performance effects of cultural distance at both the subsidiary and the firm level. We find that firms are less likely to expand to culturally distant locations but if they do, they prefer greenfield investments and integrate subsidiaries more through transfer of management practices. Cultural distance does not seem to affect how much capital firms invest and whether they enter through a joint

https://journals.sagepub.com/doi/pdf/10.1177/0149206317729027http://mpi.uinsgd.ac.id/wp-content/uploads/2019/03/Cultural-Distance-and-Firm-A-Meta-Analytical-Review-and-Theoretical-Implications.pdfhttps://journals.sagepub.com/doi/pdf/10.1177/0149206317729027

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