The Role of Cultural Distance Across Quantiles of International Joint Venture Longevity

2019 ◽  
Vol 27 (4) ◽  
pp. 3-21 ◽  
Author(s):  
Annette P. Tower ◽  
Kelly Hewett ◽  
Anton P. Fenik
Keyword(s):  
Cultural Differences ◽  
Joint Venture ◽  
Cultural Distance ◽  
Methodological Approach ◽  
International Marketing ◽  
Cultural Dimensions ◽  
International Joint Venture ◽  
International Joint ◽  
The Impact

Rapid global economic development and liberalization have increased the motivation and opportunities for firms to enter into international joint venture (IJV) agreements. Numerous studies in the international marketing literature have examined the impact of international partners’ cultural differences on IJV longevity; however, results are inconclusive, potentially due to limitations in the methods used. While this study examines the varied impact of cultural differences on IJV longevity based on the IJV’s age, it uses quantile regression, enabling the detection of varying effects’ strengths across the dependent variable’s entire distribution. The results demonstrate variations in the role of cultural differences across individual cultural dimensions as well as variations in the patterns of association between cultural differences and IJV longevity dependent on the IJV’s age. Implications for theory and the practice of international marketing are offered as well as potential applications of this study’s methodological approach.

EXPRESS: Is Ambidextrous Innovation Strategy Beneficial to International Joint Venture Performance? Evidence from China

2021 ◽  
pp. 1069031X2110060
Author(s):  
Jason Lu Jin ◽  
Kevin Zheng Zhou
Keyword(s):  
Joint Venture ◽  
Cultural Distance ◽  
International Marketing ◽  
International Joint Ventures ◽  
Innovation Strategy ◽  
Innovation Research ◽  
Venture Performance ◽  
International Joint ◽  
Ijv Performance ◽  
Parent Control

While the strategic marketing literature promotes ambidexterity as a critical innovation strategy that can enhance firm performance, its value in the international marketing context remains under-explored. Combining the ambidexterity and international marketing literatures, this study investigates how ambidexterity affects performance of the international joint ventures (IJVs) and how parent control asymmetry and cultural distance moderate the effects. Using polynomial analysis, this study simultaneously considers both the balance and intensity elements of ambidexterity and examines their effects on IJV performance in China. The authors argue that ambidexterity balance has a U-shaped effect on IJV performance, whereas ambidexterity intensity exerts an inverted U-shaped effect; such effects are further moderated by the unique features of IJVs—parent control asymmetry and cultural distance. With a dataset that combines survey and archival data on IJVs in China, the authors find strong empirical evidence for the hypotheses. These findings offer important advances to innovation research on IJVs.

Interaction despite of diversity: is it possible?

2015 ◽  
Vol 34 (6) ◽  
pp. 743-750 ◽  
Author(s):  
Rosa Caiazza ◽  
Tiziana Volpe
Keyword(s):  
Cultural Diversity ◽  
Cultural Differences ◽  
Cultural Distance ◽  
Small And Medium Enterprises ◽  
Cross Cultural ◽  
Cultural Dimensions ◽  
Content Type ◽  
Cross Cultural Differences ◽  
Egyptian Culture ◽  
The Impact

Purpose – Italy is traditionally one of Egypt’s main trading partners, ranking first both as import and export partner. However, Italian firms face several cultural problems in Egypt. The purpose of this paper is to investigate the impact of cross-cultural differences faced by Italian firms’ operating in Egypt. The investigation of cross-cultural differences is facilitated by the examination of interaction between Italian and Egyptian culture using Hofstede and GLOBE’s cultural attributes and dimensions. Design/methodology/approach – The qualitative analysis has been conducted through face to face interviews of individuals working for Italian firms operating in Egypt. These interviews were structured to specifically identify the impact of cultural differences on the interaction between Italian and Egyptian firms. Findings – The results show that Italy is one of the most important commercial partners of Egypt. However, cultural diversity results in Italian small and medium enterprises facing risks when operating in Egypt. Cultural distance is a problem for Italian firms investing in Egypt. Thus, interaction between Italian and Egyptian firms requires a common understanding of cultural diversity. Italian firms must develop an understanding of Egyptian culture if they are to avoid cultural clash. Egyptian policy-makers must adopt policies that open national culture to international interactions. Research limitations/implications – The paper is based on a sub-set of the cultural attributes identified in Hofstede and GLOBE’s study. The results presented in this paper may be complimented through a future quantitative analysis, evaluating the relationship between religious values and other cultural dimensions. Originality/value – This paper provides an insight into the interaction between Italian and Egyptian culture. It contributes to the extant literature by filling a gap in the existing literature on cross-cultural diversity and interaction between Europe and Middle East.

Sign in / Sign up

Export Citation Format

Share Document