scholarly journals The Nearer, the Better? The Impact of Cultural and Geographic Distance on Crowdfunding Project Attractiveness

2021 ◽  
Vol 2021 ◽  
pp. 1-12
Author(s):  
Hui Fan ◽  
Teng Gao ◽  
Shuman Liu
Keyword(s):  
Information Asymmetry ◽  
Cultural Distance ◽  
Geographic Distance ◽  
Home Bias ◽  
Underlying Mechanism ◽  
Shape Effect ◽  
Asymmetric Effects ◽  
The Social ◽  
World Hypothesis ◽  
The Impact

Information asymmetry between backers and project creators impedes the crowdfunding success. Consequently, creators usually rely on various information to alleviate information asymmetry. Particularly, the location information of both backers and creators embodies their geographic and cultural distance, which may affect crowdfunding project attractiveness. Whereas current literature almost ignores the role cultural distance in crowdfunding, this research focuses on the reward-based crowdfunding, so that it becomes salient to form the appreciation and judgment of the innovative, creative, or artistic nature of projects. Meanwhile, geographic distance is examined to join the debates between flat world hypothesis and home bias proposition. A series of econometric models are examined based on a sample of 264 fundraising projects collected from Kitckstarter.com through Python program. Results show that cultural distance exerts a U-shape effect, which initially impedes the crowdfunding performance but promote projects when large enough. Geographic distance generally exerts insignificant impact on crowdfunding performance. Furthermore, cultural and geographic distance exerts the asymmetric effects on experienced versus new backers. This article underscores the important implications of cultural distance on reward-based crowdfunding. By showing the differential effects of cultural and geographic distance on experience versus new backers, it empirically infers the social capital as the underlying mechanism.

The impact of “distance” on multinational enterprise subsidiary capabilities

2016 ◽  
Vol 24 (2) ◽  
pp. 168-190 ◽  
Author(s):  
Alain Verbeke ◽  
Wenlong Yuan
Keyword(s):  
Value Chain ◽  
Design Methodology ◽  
Cultural Distance ◽  
Geographic Distance ◽  
Multinational Enterprise ◽  
Foreign Subsidiaries ◽  
Content Type ◽  
Special Cases ◽  
Mne Subsidiary ◽  
The Impact

Purpose The aim of this paper is to investigate how multinational enterprise (MNE) subsidiary capabilities are influenced by the firm-specific advantages (FSAs) of the parent company, as well as by cultural and geographic distance between the home and host country. Design/methodology/approach This paper assesses how the effects of the parent FSAs, cultural distance and geographic distance on subsidiary capabilities vary for different value-chain activities, with an empirical application to 60 foreign subsidiaries operating in Canada. Findings This paper uncovers distinct, three-way interaction effects among parent-level FSAs, cultural distance and geographic distance for upstream versus downstream activities in the value chain. Originality/value We find that in special cases, high levels of distance can be positive for MNEs, in terms of driving the creation of stronger subsidiary capabilities.

scholarly journals Social Environment and Healthy Investment Behavior: Joint Influence of Culture and Institution on China

2022 ◽  
Vol 19 (1) ◽  
pp. 607
Author(s):  
Dongao Li ◽  
Songdong Shen
Keyword(s):  
Social Environment ◽  
Direct Investment ◽  
Cultural Distance ◽  
Institutional Distance ◽  
Investment Behavior ◽  
Joint Influence ◽  
The Social ◽  
Negative Effect ◽  
Using Data ◽  
The Impact

The influence of the social environment on healthy investment behavior is a vital research topic. This paper focuses on foreign direct investment (FDI) as an important part of its broad impact in improving the level of capital circulation and diversifying the non-systemic risk of a single country portfolio. Using data from 35 countries on direct investment in China, we find that the impact of the social environment on healthy investment behavior is mainly reflected in investors’ resistance to cultural distance and their benefit compensation across institutional distance. In addition, their joint influence is still negative, dominated by cultural distance, which can still verify that institutional distance mitigates the negative effect of cultural distance on FDI. Therefore, in order to promote international healthy investment behavior, it is feasible to improve both the mitigation effect of the institution in the short term and promote the level of cultural exchange in the long term, according to the research results of this paper.

The Dutch–German Border: Relating Linguistic, Geographic and Social Distances

2008 ◽  
Vol 2 (1-2) ◽  
pp. 119-134 ◽  
Author(s):  
Folkert de Vriend ◽  
Charlotte Giesbers ◽  
Roeland van Hout ◽  
Louis ten Bosch
Keyword(s):  
Continuum Model ◽  
Spatial Configuration ◽  
Geographic Distance ◽  
Research Area ◽  
The State ◽  
Social Model ◽  
Linguistic Variation ◽  
German State ◽  
The Social ◽  
The Impact

In this paper we relate linguistic, geographic and social distances to each other in order to get a better understanding of the impact the Dutch-German state border has had on the linguistic characteristics of a sub-area of the Kleverlandish dialect area. This area used to be a perfect dialect continuum. We test three models for explaining today's pattern of linguistic variation in the area. In each model another variable is used as the determinant of linguistic variation: geographic distance (continuum model), the state border (gap model) and social distance (social model). For the social model we use perceptual data for friends, relatives and shopping locations. Testing the three models reveals that nowadays the dialect variation in the research area is closely related to the existence of the state border and to the social structure of the area. The geographic spatial configuration hardly plays a role anymore.

The Role of Non-Market Factors in International Trade: A Case of Southern Africa

2017 ◽  
Vol 18 (2) ◽  
pp. 102-125
Author(s):  
Mikhail Grachev ◽  
Mariya Bobina
Keyword(s):  
International Trade ◽  
Cultural Distance ◽  
Geographic Distance ◽  
Gravity Models ◽  
Negative Effects ◽  
African Countries ◽  
Market Factors ◽  
The Impact ◽  
Cross National

This study examines the impacts of non-market factors on international trade in four regionally clustered African countries (Namibia, South Africa, Zambia, and Zimbabwe). It applies the concept of cross-national distance from international business and incorporates statistical and empirically generated data into the augmented gravity models of international trade to predict the impact of those non-market factors. The study reveals negative effects of geographic distance and positive or mixed cultural distance effects in these countries’ foreign trade flows. This paper also suggests useful implications to business scholars and practitioners.

scholarly journals Understanding the relationships between distances and herd behavior in online reviews: the moderating effects of hospitality experience

2020 ◽  
Vol 32 (10) ◽  
pp. 3295-3314
Author(s):  
Fujing Xue ◽  
Longzhu Dong ◽  
Baojun Gao ◽  
Zhen Yu ◽  
Vasyl Taras
Keyword(s):  
Cultural Distance ◽  
Geographic Distance ◽  
Online Reviews ◽  
Review Literature ◽  
Herd Behavior ◽  
Content Type ◽  
The Social ◽  
Hotel Service ◽  
Data Volume ◽  
The Usa

Purpose This study aims to investigate the determinants of herd behavior in online hotel service evaluations, focusing on the cultural and geographic distance characteristics of customers. Design/methodology/approach On the basis of 381,462 TripAdvisor reviews of hotels in the USA written by more than 100,000 customers from 92 countries, this study uses the empirical analysis to explore the collective roles of cultural distance, geographic distance and hospitality experience on herd behavior in online hotel ratings. Findings Cultural and geographic distances between customers and product and service locations positively affect herding and these two effects are substitutable. The hospitality experience of customers attenuates the impacts of distances on herding. These results are robust for multiple hotel service ratings. Practical implications Findings help hotels understand perceptual biases of customers on hotel services under the social influence and consequently develop effective marketing strategies to boost hotel revenues and increase profitability. Originality/value The research contributes to hospitality and online review literature by understanding how cultural and geographic distances shape online hotel service evaluations under the root of the uncertainty of decision-making and the observation of others’ behavior. The research also contributes to the distances in international business literature by deepening the understanding of the substitution and heterogeneity of distance effects. Methodologically, a time-varying and monotonously increasing variable is constructed to depict customers’ hospitality experience. The extensive data volume ensures the generalizability of our results.

scholarly journals Home Bias and Corporate Environmental Social Responsibility

2021 ◽  
Vol 13 (11) ◽  
pp. 5860
Author(s):  
Xing Rong ◽  
Bingjie Song ◽  
Tingting Zhang ◽  
Kai Liu
Keyword(s):  
Social Network ◽  
Social Responsibility ◽  
Pressure Effect ◽  
Home Bias ◽  
Listed Companies ◽  
Positive Evidence ◽  
Informal System ◽  
The Social ◽  
Micro Level ◽  
The Impact

This paper analyzes the impact of executives’ hometown identification on corporate environmental social responsibility (CESR) using a sample of Chinese A-share-listed companies from 2007 to 2018. It finds that: the CESR scores of companies are higher when executives work in their hometowns, indicating that executives’ hometown identification significantly improves the fulfillment of CESR; mechanism tests show that the above relationship is more significant in regions with superior environmental quality, indicating that executives take CESR more seriously in their hometowns more due to social pressure; further tests found that executive characteristics, such as executive type and age, have a regulating effect on this relationship. In addition, the nature of property rights of listed companies also affects executives’ hometown identification. Executives of state-owned enterprises have a stronger hometown identification, which enhances the fulfillment of CESR to a higher extent. In the context of the micro level of the enterprise, this paper provides positive evidence that an informal system, named as “hometown identity”, can enhance the performance of CESR and the pressure effect implicitly behind the social network, which enriches and expands the research related to CESR fulfillment.

The Impact of Endorsing the Belief in a Just World on Social Judgments

2013 ◽  
Vol 44 (3) ◽  
pp. 209-218 ◽  
Author(s):  
Benoît Testé ◽  
Samantha Perrin
Keyword(s):  
Social Desirability ◽  
Social Value ◽  
Social Utility ◽  
Western Society ◽  
Social Judgments ◽  
Just World ◽  
The Social ◽  
Main Effect ◽  
The Impact

The present research examines the social value attributed to endorsing the belief in a just world for self (BJW-S) and for others (BJW-O) in a Western society. We conducted four studies in which we asked participants to assess a target who endorsed BJW-S vs. BJW-O either strongly or weakly. Results showed that endorsement of BJW-S was socially valued and had a greater effect on social utility judgments than it did on social desirability judgments. In contrast, the main effect of endorsement of BJW-O was to reduce the target’s social desirability. The results also showed that the effect of BJW-S on social utility is mediated by the target’s perceived individualism, whereas the effect of BJW-S and BJW-O on social desirability is mediated by the target’s perceived collectivism.

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