Title

Meta-analysis of Cultural Differences: Another Slice at the Apple

Authors

Peter Magnusson, Northern Illinois UniversityFollow
Daniel W. Baack, Miller College of Business
Srdan Zdravkovic, Bryant University
Karin M. Staub, Boeing Institute of International Business
Lyn S. Amine

Document Type

Article

Comments

Published by Elsevier in the International Business Review, volume 17 issue 5, 2008. Bryant users may access this article here.

Keywords

Cultural distance; Entry strategy; Firm performance; Meta-analysis; Psychic distance

Publisher

Elsevier

Publication Source

International Business Review

Abstract

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.