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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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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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description	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.
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source	International Bibliography of the Social Sciences (IBSS); Elsevier
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
title	Meta-analysis of cultural differences: Another slice at the apple
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