Meta-analysis of cultural differences: Another slice at the apple

We present a meta-analysis of the effects of cultural differences on multinational firms’ entry strategy and performance. Replicating previous studies, we find only a weak negative relationship between cultural differences and both entry strategy and performance. However, when the moderating effects...

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Bibliographic Details
Published in:International business review 2008-10, Vol.17 (5), p.520-532
Main Authors: Magnusson, Peter, Baack, Daniel W., Zdravkovic, Srdan, Staub, Karin M., Amine, Lyn S.
Format: Article
Language:English
Subjects:
Cultural differences
Cultural distance
Cultural distance Entry strategy Firm performance Meta-analysis Psychic distance
Cultural influence
Economic activity
Entry strategy
Firm performance
Market entry
Meta-analysis
Multinational enterprises
Psychic distance
Strategic planning
Time
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Summary:We present a meta-analysis of the effects of cultural differences on multinational firms’ entry strategy and performance. Replicating previous studies, we find only a weak negative relationship between cultural differences and both entry strategy and performance. However, when the moderating effects of time, MNE origin, and cultural-differences operationalization are taken into account, an interesting picture emerges which presents new insights. The relationships for entry strategy and firm performance are consistently moving in opposite directions across all three moderators. This suggests that cultural differences still have a strong influence on MNE activity and it emphasizes the continued importance of developing cross-culturally competent managers.
ISSN:0969-5931
1873-6149
DOI:10.1016/j.ibusrev.2008.04.003