The Kogut and Singh national cultural distance index: Time to start using it as a springboard rather than a crutch

This Counterpoint investigates the continued relevance of the 30-year-old Kogut and Singh (KS) index of cultural distance. KS was a seminal contribution, highlighting the relevance of cultural differences in IB. However, since then, simplistic replications of the original arguments and index have pr...

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Bibliographic Details
Published in:Journal of international business studies 2018-12, Vol.49 (9), p.1154-1166
Main Authors: Maseland, Robbert, Dow, Douglas, Steel, Piers
Format: Article
Language:English
Subjects:
Algorithms
Business and Management
Business Strategy/Leadership
COUNTERPOINT
Cultural differences
Globalization
International Business
International comparisons
Management
Multiculturalism & pluralism
Organization
Transaction costs
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Summary:This Counterpoint investigates the continued relevance of the 30-year-old Kogut and Singh (KS) index of cultural distance. KS was a seminal contribution, highlighting the relevance of cultural differences in IB. However, since then, simplistic replications of the original arguments and index have prevented us from progressing towards a better understanding of how cross-national differences matter. We discuss the mechanisms underlying the construct and how they relate to the algorithm, data, and its critiques. We call for more theoretically informed approaches, highlighting the underlying mechanisms, and specifying which data and algorithms best capture those mechanisms in each research context.
ISSN:0047-2506
1478-6990
DOI:10.1057/s41267-018-0183-3