Is Home-Host Cultural Distance a Risk? Evidence from Outward Foreign Direct Investment by Chinese Enterprises

Cultural distance is always regarded as a “risk” in the decision making of enterprises involved in the outward foreign direct investment (OFDI), however, investment is a powerful driver of productivity growth and increased innovation capacity of enterprises in both countries. Is cultural distance a “risk” ? Using Hofstede's indicators and the Kogut and Singh index (1988), this paper calculates the cultural distance based on six cultural dimensions and further examines the effect of cultural distance on the outward foreign direct investment by Chinese enterprises and its mediating effects on the role of other factors influencing the decisions of multinationals. The results indicate that there is a nonlinear effect of cultural distance and the mediating effect of cultural distance is negative.

Examining the Impact of Perceived Cultural Distance on the Pragmatic Choices of Saudi Customers in Service Encounters

This study examines service encounters in Saudi Arabia from a pragmatic perspective. Its aim is to investigate the possible impact of perceived cultural distance between customers and service providers on pragmatic choices. It specifically examines how Saudi customers construct their service encounters when talking to service providers of the same (versus different) cultural/ethnic background in terms of discourse structure; strategies of request and internal modifications, and stylistic strategies. Three cafés with service providers of three different ethnic/cultural backgrounds are chosen. One has Saudi service providers, the second café has Arab (non-Saudi) service providers, and the third café has non-Arab service providers. Forty socially minimal service encounter interactions that take place in each café are observed and manually recorded. The study uses the framework of ‘rapport management’ by Spencer-Oatey (2002) as its approach for data analysis. The findings indicate that there are differences among the three sets of data in terms of discourse structure, the realization of the speech act of request, and the stylistic aspect of interactions. According to the special nature of service encounters, customers’ pragmatic choices are explained in terms of expressing certain degrees of social distance rather than politeness. More specifically, the closer cultural distance between customers and service providers, the more pragmatic strategies functioning to achieve more closeness and solidarity are employed.

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

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.

Acquisition versus greenfield in Colombia: Reviewing the effect of cultural distance and vicarious experience

The relation between the cultural distance and the firm’s entry modes to foreign countries has received considerable research attention, and studies have shown the role of experience in this relation. However, previous research has only studied direct experience and neglected the study of vicarious experience. Using a sample of 355 foreign companies that entered Colombia (2007–2017), this research reviews the effect of cultural distance on entry mode choice (e.g., Acquisition vs. Greenfield) and examines the moderating role of vicarious experience in this relationship. The study concludes that the cultural distance positively affects the entry probability by acquisition, and the vicarious experience negatively affects this relationship in four cultural dimensions. If firms have vicarious experience, the effect of cultural distance on the acquisition probability is less and positively influences the entry probability by Greenfield when the cultural distance is in power distance, uncertainty avoidance, individualism, and long-term orientation. Nevertheless, vicarious experience has the opposite effect when considering the masculinity dimension. Consequently, we highlight the importance of considering vicarious experience as a different variable of direct experience and the individual effects of cultural distance dimensions for cross-cultural studies in management.

The Paradigm of Finnish Reviews of "Without Dogma" by Henryk Sienkiewicz: Observations on the Issue of Intercultural Communication and the Functioning of Common Motifs of European Culture

The Paradigm of Finnish Reviews of Without Dogma by Henryk Sienkiewicz: Observations on the Issue of Intercultural Communication and the Functioning of Common Motifs of European CultureThe translation of Henryk Sienkiewicz’s novel Without Dogma into Finnish, entitled Anielka (1913), generated considerable interest in the Finnish press, evidenced by as many as twelve reviews of the work. The article analyses these reviews, describes them in terms of a paradigm and presents their functioning on the book market. Taking into account cultural distance between Poles and Finns, the reviews are approached as a testimony to intercultural communication, which was enabled thanks to community – the paradigm of European culture and its common motifs, such as the mal du siècle or l’improductivite slave, the latter highlighted by Sienkiewicz and particularly interesting for Finnish reviewers. Cultural distance turns out to be a factor that reveals new aspects of interpretation of Without Dogma and, more broadly, the specificity of Finnish thinking about Poland. Paradygmat fińskich recenzji Bez dogmatu Henryka Sienkiewicza. Obserwacje dotyczące kwestii komunikacji międzykulturowej i funkcjonowania wspólnych motywów kultury europejskiejPrzekład powieści Henryka Sienkiewicza Bez dogmatu na język fiński pod tytułem Anielka (1913) spotkał się z widocznym zainteresowaniem prasy fińskiej, czego poświadczeniem jest aż 12 recenzji tego dzieła. Przedmiotem zainteresowania autora artykułu są te właśnie recenzje, które poddał analizie i opisał w ramach paradygmatu oraz przedstawił ich funkcjonowanie na rynku księgarskim. Biorąc pod uwagę odległość kulturową Polaków i Finów, autor opracowania potraktował te recenzje jako świadectwo komunikowania międzykulturowego, umożliwionego przez wspólnotę, jaką stanowi paradygmat kultury europejskiej i jego obiegowe motywy, jak motyw choroby wieku czy wyeksponowany przez Sienkiewicza motyw l’improductivite slave, szczególnie interesujący dla recenzentów fińskich. Odległość kulturowa okazała się czynnikiem odsłaniającym nowe aspekty interpretacji Bez dogmatu i – szerzej – specyfikę fińskiego myślenia o Polsce.

The spread of agriculture in Iberia through Approximate Bayesian Computation and Neolithic projectile tools

In the present article we use geometric microliths (a specific type of arrowhead) and Approximate Bayesian Computation (ABC) in order to evaluate possible origin points and expansion routes for the Neolithic in the Iberian Peninsula. In order to do so, we divide the Iberian Peninsula in four areas (Ebro river, Catalan shores, Xúquer river and Guadalquivir river) and we sample the geometric microliths existing in the sites with the oldest radiocarbon dates for each zone. On this data, we perform a partial Mantel test with three matrices: geographic distance matrix, cultural distance matrix and chronological distance matrix. After this is done, we simulate a series of partial Mantel tests where we alter the chronological matrix by using an expansion model with randomised origin points, and using the distribution of the observed partial Mantel test’s results as a summary statistic within an Approximate Bayesian Computation-Sequential Monte-Carlo (ABC-SMC) algorithm framework. Our results point clearly to a Neolithic expansion route following the Northern Mediterranean, whilst the Southern Mediterranean route could also find support and should be further discussed. The most probable origin points focus on the Xúquer river area.

The Nature of Interethnic Relations in the Republic of Sakha (Yakutia) During the Pandemic

The article is devoted to the analysis of interethnic relations in the Republic of Sakha (Yakutia) against the background of the coronavirus pandemic. The study was conducted taking into account the methodology of monitoring studies implemented by the FADN of Russia. This material presents data that allow us to make comparisons with representative ethnosociological studies carried out in the RS(Ya) in different years, and to trace the patterns of development of interethnic relations. The article presents conclusions about the state of interethnic relations in the RS (Ya) in 2020. The results of the study allow us to speak about a benevolent interethnic climate in the republic: 75% of Yakuts assess interethnic relations in the republic as benevolent and normal. These indicators are close to the all-Russian ones. The analysis of assessments of interethnic relations in the settlements of the republic for the period 2015–2020 shows a positive dynamics. The interethnic attitudes of the respondents demonstrate a positive trend – 70–80% of the respondents expressed their readiness for interethnic interactions in the labor and informal spheres. The dynamics of measurements on the Bogardus scale demonstrates a steady reduction in the socio-cultural distance. The factors influencing the current trends in interethnic attitudes are highlighted. Negative assessments of the social well-being of the population affect the perception of interethnic relations. Those who are dissatisfied with their life and financial situation are more likely to assess the interethnic situation in their locality as tense.

Determinants of Staff Localization in Headquarters-Subsidiary-Subsidiary Relationships

This paper investigates how cultural distance, the local experience of a foreign subsidiary, and the intensity of local competition jointly affect the staff localization of MNEs’ subsidiaries. While previous studies on the effects of cultural distance have mainly focused on the gap between home and host countries, we extend the existing “home-host” country perspective to the home-intermediary-host country relationship. This study regards Korea as an intermediary country and utilizes 520 observations from a unique survey conducted by the Export-Import Bank of Korea from 2006 to 2013. The results suggest that the impact of cultural distance on staff localization is a function of local experience and competitive environment in the home-intermediate-host relationship structure. This paper makes a theoretical contribution to our understanding of the behavior of multinational corporations by expanding the cultural distance perspective between the home and host countries explored in previous research to the home-subsidiary-subsidiary structure.

Coopetition among competitors in global industries: drivers that lead to coopetitive agreements

Purpose The purpose of this study is to focus on a growing strategic approach in global industries: the coopetition. Cooperation among competitors, namely, coopetition, is a strategic guideline in many global industries affected by technological innovation. This study discussed the effect of firm-, inter-firm- and industry-level drivers leading to coopetitive agreements in global industries affected by technological innovation. Design/methodology/approach By using an event history analysis, the authors develop a framework on firm-, inter-firm- and industry-level drivers on the likelihood of each competitor in the industry entering into coopetitive agreements in global competitive contexts. Empirical data are analyzed in five global industries: car industry, telecommunication industry, air transportation industry, bank industry and computer programming services industry. Findings The results of this study suggest that firms’ experience in cooperation (H1) predicts whether a firm will enter a coopetitive agreement. Moreover, the cultural similarity among competitors (H2) predicts whether a firm will enter a coopetitive agreement with a culturally similar competitor, while the total number of competitors already involved in coopetitive agreements (H3) has a low positive effect on the likelihood of a firm to coopete. Finally, the speed of agreements among competitors (H4) and the total number of coopetitive agreements in the industry (H5) (only in the car industry and software industry) are positively related to the chance of a firm entering into a coopetitive agreement. Research limitations/implications First, the authors identified and tested specific drivers of coopetition as a result of the literature review and data accessibility. The results may have omitted some variables able to further explain the event of coopetition. Second, the results of cultural distance versus cultural similarity revealed differences on firms’ behavior according to their different nationality. Chinese firms were the most oriented to deal coopetitive agreements with other Chinese firms, while firms from other countries were progressively less oriented by cultural similarity. These results may lead to studies of the “country of origin effect” on which partners to include in coopeititve agreements or which network of partners to join. Finally, the findings of this study are based on five industries over a specific ten years period of time. Consequently, the results certainly reflect the evolution of these industries over the time period considered. Practical implications The empirical investigation clarifies the relationship between decisions on strategy and competitive dynamics with the decision-making option to coopete. While managers take into account strategic moves against competitors, according to the authors’ investigation, it is valuable to consider coopetitive actions, especially when other competitors are involved in coopetitive agreements and the industry is affected by technological innovation. Moreover, the knowledge of drivers at the firm, inter-firm and industry level affecting coopetition is helpful to identify the weak or strong signals that show the rise and proliferation of coopetition in an industry. Social implications This study highlights the relevance of coopetition as an emerging approach in the competition among firms for developing or exploiting technological innovations. This approach can improve results in technological innovations that can have an impact in sustainability as well as new innovative solutions for social progress. Originality/value In literature, attention has been focused on drivers explaining the growing number of coopetitive agreements in several industries. Some contributions already discussed this topic from the perspective of costs and benefits for players. This study tries to continue to fill this research gap by studying, at firm, inter-firm and industry level, drivers of the likelihood of each competitor in the industry entering into coopetitive agreements in global competitive contexts.