Cultural Distance and the Performance of International Joint Ventures

A Critical Assessment of Model Specifications and Variable Measurement

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Abstract

This study provides a critical summary and assessment of the empirical literature on the relationship between cultural distance and the performance of international joint ventures (IJVs) based on studies published over the period 1993-2008. The existing literature reports inconsistent and largely statistically insignificant findings for the relationship. We add to this literature by analyzing some 63 empirical studies of the cultural distance IJV performance linkage. We further confirm the absence of any consistent and statistically significant linkage, despite strong conceptual arguments for anticipating a strong empirical relationship. We also evaluate different proposed explanations of the weak empirical findings in the literature and find some mixed support for these explanations. We conclude with some suggestions for improving the modeling of the cultural distance IJV performance relationship.
Original languageEnglish
JournalInternational Journal of Strategic Business Alliances
Volume3
Issue number1
Pages (from-to)93-119
ISSN1756-6444
Publication statusPublished - 2013

Bibliographical note

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Cite this

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title = "Cultural Distance and the Performance of International Joint Ventures: A Critical Assessment of Model Specifications and Variable Measurement",
abstract = "This study provides a critical summary and assessment of the empirical literature on the relationship between cultural distance and the performance of international joint ventures (IJVs) based on studies published over the period 1993-2008. The existing literature reports inconsistent and largely statistically insignificant findings for the relationship. We add to this literature by analyzing some 63 empirical studies of the cultural distance IJV performance linkage. We further confirm the absence of any consistent and statistically significant linkage, despite strong conceptual arguments for anticipating a strong empirical relationship. We also evaluate different proposed explanations of the weak empirical findings in the literature and find some mixed support for these explanations. We conclude with some suggestions for improving the modeling of the cultural distance IJV performance relationship.",
keywords = "Cultural distance, International joint venture, Performance, Model specification, Variable measurement",
author = "Jeppe Christoffersen and Steven Globerman and Nielsen, {Bo Bernhard}",
note = "CBS Library does not have access to the material",
year = "2013",
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issn = "1756-6444",
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T1 - Cultural Distance and the Performance of International Joint Ventures

T2 - A Critical Assessment of Model Specifications and Variable Measurement

AU - Christoffersen, Jeppe

AU - Globerman, Steven

AU - Nielsen, Bo Bernhard

N1 - CBS Library does not have access to the material

PY - 2013

Y1 - 2013

N2 - This study provides a critical summary and assessment of the empirical literature on the relationship between cultural distance and the performance of international joint ventures (IJVs) based on studies published over the period 1993-2008. The existing literature reports inconsistent and largely statistically insignificant findings for the relationship. We add to this literature by analyzing some 63 empirical studies of the cultural distance IJV performance linkage. We further confirm the absence of any consistent and statistically significant linkage, despite strong conceptual arguments for anticipating a strong empirical relationship. We also evaluate different proposed explanations of the weak empirical findings in the literature and find some mixed support for these explanations. We conclude with some suggestions for improving the modeling of the cultural distance IJV performance relationship.

AB - This study provides a critical summary and assessment of the empirical literature on the relationship between cultural distance and the performance of international joint ventures (IJVs) based on studies published over the period 1993-2008. The existing literature reports inconsistent and largely statistically insignificant findings for the relationship. We add to this literature by analyzing some 63 empirical studies of the cultural distance IJV performance linkage. We further confirm the absence of any consistent and statistically significant linkage, despite strong conceptual arguments for anticipating a strong empirical relationship. We also evaluate different proposed explanations of the weak empirical findings in the literature and find some mixed support for these explanations. We conclude with some suggestions for improving the modeling of the cultural distance IJV performance relationship.

KW - Cultural distance

KW - International joint venture

KW - Performance

KW - Model specification

KW - Variable measurement

M3 - Journal article

VL - 3

SP - 93

EP - 119

JO - International Journal of Strategic Business Alliances

JF - International Journal of Strategic Business Alliances

SN - 1756-6444

IS - 1

ER -