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Impact of cultural positions on FDI’s entry mode

Bibliographic Data

ID20501528
AuthorsCristina López‐Duarte (0000-0002-4785-9176, Universidad de Oviedo), Cristina López-Duarte, Marta María Vidal Suárez (0000-0002-9579-8750, Universidad de Oviedo), Marta M Vidal-Suárez, Belén González (0000-0002-4403-9359, Universidad de Oviedo), Belén González-Díaz (0000-0001-5031-8787)
Year2015
Volume22
Issue3
Pages509-526
Publication date2015-08-03
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueCross Cultural Management An International Journal (JOURNAL)
Journal identifiersISSN: 1352-7606 • E-ISSN: 1758-6089
PublisherEmerald (PUBLISHER)
DOI10.1108/ccm-07-2014-0086
OpenAlexW1523449711
LanguageEN
References cited77

Purpose – The purpose of this paper is to study the influence of cultural positions on the choice of entry mode in foreign direct investment (FDI) – joint ventures vs wholly owned subsidiaries. The paper focusses on the impact of cultural positions along four cultural dimensions, as well as on the interactions between these positions and FDI’s contextual variables (i.e. linguistic differences). Design/methodology/approach – A fuzzy set qualitative comparative analysis is performed on a data set of Spanish investments located in the European Union. Findings – Existence of interaction effects among cultural positions along different dimensions, as well as between cultural positions and FDI’s contextual variables. Research limitations/implications – Main limitations relate to the data set, as only FDIS carried out by big corporations and coming from a single country are considered. Practical implications – Managers making decisions on the choice of entry mode must take into account the position relative to each individual cultural dimension, as well as its interaction with other cultural dimensions and FDI’s contextual variables, rather than just considering cultural distances (CDs) between countries. Originality/value – First, focus on cultural positions (rather than CDs). It allows taking into account both the cultural characteristics of each party and their relative values along individual cultural dimensions. Second, development of a qualitative analysis that considers the contextual features of the investment

Business · Cultural diversity · Cultural values · Economic geography · Economics · European union · Foreign direct investment · Hofstede's cultural dimensions theory · International trade · Multinational corporation · Originality · Qualitative comparative analysis · Qualitative research · Social science · Sociology · Statistics · Subsidiary · Computer Science · Innovation and Knowledge Management · International Business and FDI · Mathematics · Psychology · Qualitative Comparative Analysis Research · Social Psychology

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