The Effect of National Culture on the Choice of Entry Mode

Kogut, Bruce; Singh, Harbir

doi:10.1057/palgrave.jibs.8490394

Cited by 4,962 publications

(4,249 citation statements)

References 30 publications

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“…The formula design originates from Kogut and Singh's (1988) research on cultural distance, in which the authors correct the variance to impose certain weights on indicators in the composite index of Hofstede's cultural dimensions, and is popularly applied by subsequent research on the examination of cultural or institutional differences in international contexts (e.g., Gaur & Lu, 2007;Morosini, Shane, & Singh, 1998).…”

Section: Measures and Control Variablesmentioning

confidence: 99%

Institutional distance and knowledge acquisition in international buyer-supplier relationships: The moderating role of trust

Ghauri

Larimo

2017

Asia Pac J Manag

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Institutional distance can generate expanded opportunities for multinational firms to facilitate learning and responsiveness. However, such distance can also create obstacles regarding knowledge transfer and integration. A theoretical puzzle concerns the mechanisms and conditions in which international buyers and suppliers can overcome institutional distance and acquire new knowledge. We develop an integrative moderated-mediation model in which institutional distance prevents parties from accessing knowledge but, when knowledge is obtained and mutual trust is developed, it promotes cross-border knowledge acquisition in international buyer-supplier exchange, particularly between international firms and firms from the Asia Pacific region. These findings indicate that firms can overcome the challenges of regulative and cognitive distance and facilitate access to knowledge and knowledge acquisition when they are able to develop and cultivate relationships of mutual trust with foreign partners. While normative distance may create learning incentives and opportunities in international buyer-supplier relationships, its impacts on knowledge accessibility and acquisition are insignificant.

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Section: Measures and Control Variablesmentioning

confidence: 99%

Institutional distance and knowledge acquisition in international buyer-supplier relationships: The moderating role of trust

Ghauri

Larimo

2017

Asia Pac J Manag

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“…At the micro-level, substantial research has focused on explaining the way in which international expansion takes shape in studies on entry mode choice (Brouthers, 2002;Chang, 1995;Kogut and Singh, 1988;Makino and Neupert, 2000), including the identification of the determinants of such choices like markets and investment risk, firm strategic factors and ownership advantages (Kim and Hwang, 1992;Agarwal and Ramaswami, 1992), as well as their performance implications, that have been found to be dependent upon host country context, firm-specific resources and organizational control (Woodcock et al, 1994;Slangen, 2006;Siripaisalpipat and Hoshino, 2000), firm strategy (Busija et al, 1997) or entry sequence (Pan et al, 1999).…”

Section: Existing Researchmentioning

confidence: 99%

Internationalization trajectories--a cross-country comparison: Are large Chinese and Indian companies different?

Fortanier¹,

Tulder²

2009

Industrial and Corporate Change

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This paper explores whether the internationalization trajectories -patterns over time in the level, pace, variability and temporal concentration of international expansion -of large firms from China and India are fundamentally different from those of developed country firms. A longitudinal cross-country comparative study of 256 large firms for the 1990-2004 period shows that, although internationalization trajectories of large and leading Chinese and Indian firms are indeed different, there are also considerable similarities between established developed country firms and the new firms from emerging markets, not in the least because they often interact within the same sector

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“…There is a large literature on the impact of culture on firm choices -for instance choice of partners in joint ventures (Shan and Hamilton, 1991;Barkema and Vermeulen,1997), choice of foreign entry mode and ownership patterns (Kogut andSingh, 1988, Erramilli, 1996).…”

Section: Modeling Performance Determinantsmentioning

confidence: 99%

The home country in the age of globalization: how much does it matter for firm performance?

Hawawini

Subramanian

Verdin

2004

Journal of World Business

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The globalization process has created considerable speculation on the impact of the home country environment to a firm's competitive advantage in international markets. Using a random effects model that is partly induced from the concept of comparative advantage and partly following the descriptive modeling of performance determinants, this paper explores the quantitative impact of home country environment on the performance for firms across 6 countries. The paper uses two value based, i.e. risk adjusted and cash-flow based, measures of firm performance. The results indicate that the importance of country factors is low and firm-specific factors dominate performance across and within countries. The results also show that global industry effects are increasingly more important than country effects.

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The Effect of National Culture on the Choice of Entry Mode

Cited by 4,962 publications

References 30 publications

Institutional distance and knowledge acquisition in international buyer-supplier relationships: The moderating role of trust

Institutional distance and knowledge acquisition in international buyer-supplier relationships: The moderating role of trust

Internationalization trajectories--a cross-country comparison: Are large Chinese and Indian companies different?

The home country in the age of globalization: how much does it matter for firm performance?

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