Cultural distance or cultural positions? Analysing the effect of culture on the HQ–subsidiary relationship

Drogendijk, Rian; Holm, Ulf

doi:10.1016/j.ibusrev.2011.05.002

Cited by 36 publications

(29 citation statements)

References 49 publications

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“…In high NPD countries, international strategic decision‐making is much more centralized and authority differences across echelons more pronounced (Dimitratos, Petrou, Plakoyiannaki, & Johnson, ). TMTs in high NPD cultures will grant less autonomy to subsidiaries and invest less in MNC‐wide structures that would help translate CE activities into MNC innovation (Drogendijk & Holm, ). In low‐power distance cultures, in contrast, less powerful actors are more likely to, and encouraged to, get involved in decision‐making (Li & Harrison, ).…”

Section: Theoretical Background and Hypothesesmentioning

confidence: 99%

Top management team nationality diversity, corporate entrepreneurship, and innovation in multinational firms

Boone

Lokshin

Guenter

et al. 2018

Strategic Management Journal

187

156

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Research Summary: We integrate insights from upper echelon theory and the literature on innovation and multinational corporations (MNCs) to develop a framework explaining when and why nationality diversity in top management teams (TMTs) affects corporate entrepreneurship-as evidenced by diversity in global knowledge sourcing-and through this innovation performance in MNCs. In a panel of 165 manufacturing MNCs based in 20 countries, we confirm that the positive effects of TMT nationality diversity on corporate entrepreneurship and innovation are only unleashed in TMTs with low social stratification and in MNCs located in home countries that are low in national power distance. Our study contributes to opening up the black box of the upper echelon's strategic role in spurring entrepreneurship and innovation in MNCs embedded in different cultures. Managerial Summary: The internationalization of TMTs in MNCs has been increasing in response to the globalization of markets and sources of knowledge. In this study, we examine under what circumstances MNCs that have TMTs comprised of executives with diverse nationalities exhibit stronger innovation performance. Analysis of leading corporations from 20 countries over a period of 10 years reveals that MNCs with diverse TMTs engage more in corporate entrepreneurship and subsequently see increased innovation performance-but only when these TMTs are operating in environments characterized by equal distribution of power and low hierarchy. The findings underscore the important role of corporate headquarters and TMT composition in the strategic management of modern MNCs.

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Section: Theoretical Background and Hypothesesmentioning

confidence: 99%

Top management team nationality diversity, corporate entrepreneurship, and innovation in multinational firms

Boone

Lokshin

Guenter

et al. 2018

Strategic Management Journal

187

156

View full text Add to dashboard Cite

show abstract

“…Albeit criticized (Kandogan, 2012), the Kogut-Singh (KS) cultural distance has been employed to compare cultures in several studies (Drogendijk & Holm, 2012;Drogendijk & Slangen, 2006;Ng, Lee, & Soutar, 2007).…”

Section: Differences Between Users' Perceptionsmentioning

confidence: 99%

Factors affecting mobile users' switching intentions: a comparative study between the brazilian and german markets

Martins¹,

Hor-Meyll

Ferreira

2013

BAR, Braz. Adm. Rev.

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In the competitive wireless market, there are many drivers behind customer defection. Switching barriers, service performance, perceived value in carriers' offers, satisfaction and other constructs can play a pivotal role in customer switching processes among carriers. This study attempts to compare the influence of these factors, taking into account cultural similarities and dissimilarities, between Brazilian and German mobile users. A survey was conducted on two samples, comprising 202 users in Brazil and 200 users in Germany, with culture being employed as a context variable to compare their behavior. Analysis by means of multi-group structural equation modeling suggests that, in both countries, customer satisfaction, service performance and perceived value have important roles in defining customer switching intentions, while switching barriers did not prove to have significant effects upon switching behavior. The results also suggest that the two cultures are sufficiently similar (considering the sample and the variables involved in the model) to not present differences in the studied consumer behavior, except for the effect of service performance upon satisfaction.

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“…Here, we use the "cultural position" approach to represent (strong or weak) cultural level of each country. Cultural distance indicators,-for example, Kogut and Singh's (1988) index or the Euclidean distance index of Drogendijk and Slangen (2006)-ignore the actual cultural characteristics or position on cultural dimensions (Drogendijk and Holm 2015). We are interested in representing position of the countries regarding the cultural characteristics, so it would not be appropriate to use the "cultural distance" concept.…”

Section: Effect Of the National Cultural System: Hofstede's Dimensionsmentioning

confidence: 99%

Culture, Board Composition and Corporate Social Reporting in the Banking Sector

García‐Meca

Bohorquez

Cuadrado‐Ballesteros

2018

Administrative Sciences

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This paper contributes to the debate on the corporate governance of financial institutions, by studying the effect of different board characteristics on the level of corporate social responsibility (CSR) disclosures of banks. For that, we use a sample composed by 159 banks over the period [2004][2005][2006][2007][2008][2009][2010]. We found that independent directors and gender diversity favor the disclosure CSR information in baking sector. But, these results are moderated by the national cultural system; concretely, previous positive effects of independence and diversity of banks' boards on CSR reporting are reduced in countries with a weaker cultural system, that is, individualist, masculine and vertically stratified societies, that are little indulgent and short-term oriented and show high levels of uncertainty avoidance.

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Cultural distance or cultural positions? Analysing the effect of culture on the HQ–subsidiary relationship

Cited by 36 publications

References 49 publications

Top management team nationality diversity, corporate entrepreneurship, and innovation in multinational firms

Top management team nationality diversity, corporate entrepreneurship, and innovation in multinational firms

Factors affecting mobile users' switching intentions: a comparative study between the brazilian and german markets

Culture, Board Composition and Corporate Social Reporting in the Banking Sector

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