Cross-national Distance: Concepts, Measures and Relationships

2012 ◽  
Vol 13 (2) ◽  
pp. 37-59
Author(s):  
Karen Newman
Keyword(s):  
International Business ◽  
Cultural Distance ◽  
Institutional Distance ◽  
Business Practices ◽  
Psychic Distance ◽  
Business Decisions ◽  
Competing Models ◽  
Objective Indicators ◽  
Cross National

Cross-national distances between national cultures and national institutions have been studied extensively in the last two decades, particularly with respect to their effects on the conduct of international business. Yet varying levels of analysis, inconsistent definitions, and different operationalizations of cross-national distances inhibit theoretical and empirical advances. Three approaches to non-geographic cross-national distance permeate the literature: psychic distance, national cultural distance, and institutional distance. The meaning of psychic distance has become muddied by evolving operationalizations, from objective indicators to individual perceptions. National cultural distance has been confused with both psychic distance and institutional distance. Various and inconsistent institutional arrangements and business practices are used as measures of institutional distance. This article reviews overlaps, inconsistencies, and ambiguities in the definitions and measurements of psychic, national cultural and institutional distance; suggests a way to rationalize the three constructs; and offers two competing models to explain the role of all three distances in international business decisions.

Implementing Interactive Multimedia Training

1995 ◽  
Vol 11 (04) ◽  
pp. 264-268
Author(s):  
Ralph E. Matlack ◽  
Edward R. Matlack
Keyword(s):  
Interactive Multimedia ◽  
Interactive Media ◽  
Corporate Training ◽  
Decision Makers ◽  
Business Practices ◽  
Expected Return ◽  
Business Decisions ◽  
Success Stories ◽  
Relevant Factors

This paper provides a brief overview of the role of interactive multimedia (IM) in corporate training, and will discuss the relevant factors in making wise business decisions regarding the implementation of interactive multimedia within U.S. shipyards. Despite the numerous studies and reports citing the efficiencies of delivering instructions in a multisensory format via a computer, shipyards have been slow to implement this technology into their business practices. The reasons for this are twofold: first, the technology is still viewed as nascent and unproven, and second, the business benefits are not well understood by decision-makers. This paper focuses on understanding the business benefits of implementing interactive multimedia in a shipyard environment. Case studies and success stories are referenced for the purpose of understanding how IM training works within the shipyard The main thrust of discussion is towards how to properly analyze the expected return on investment and strategy for implementation of interactive media within a typical shipyard.

Economic freedom reform: does culture matter?

2021 ◽  
pp. 1-19
Author(s):  
Nicholas Moellman ◽  
Danko Tarabar
Keyword(s):  
Economic Freedom ◽  
Cultural Distance ◽  
Institutional Distance ◽  
Long Run

Abstract We analyse the role of culture in economic freedom reform and dispersion in an unbalanced panel of up to 80 countries, and in dyadic models with up to 3,003 unique country pairs. We find that a sense of individualism strengthens the effectiveness of democracy in promoting economic freedom within countries over 1950–2015, and that institutional distance between countries increases in their cultural distance, suggesting an important role of culture in determining long-run institutional equilibria. Our results are robust to a large variety of socio-economic controls, measures of institutions and measures of bilateral geographic, economic and demographic distances.

What is in a name? Cross-national distances and subsidiary’s corporate visual identity change in emerging-market firms’ cross-border acquisitions

2018 ◽  
Vol 35 (2) ◽  
pp. 301-319 ◽  
Author(s):  
Ru-Shiun Liou ◽  
Rekha Rao-Nicholson ◽  
David Sarpong
Keyword(s):  
Cultural Distance ◽  
Emerging Market ◽  
Institutional Distance ◽  
Foreign Subsidiaries ◽  
Content Type ◽  
Cross Border ◽  
Economic Distance ◽  
Visual Identity ◽  
Emerging Market Firms ◽  
Cross National

Purpose Addressing the unique challenge facing emerging-market firms (EMFs) of branding and marketing in their foreign subsidiaries, the purpose of this paper is to evaluate the foreign subsidiary’s corporate visual identity (CVI) transitions during the post-acquisition period. Design/methodology/approach Data on 330 cross-border acquisitions from five emerging markets, namely, Brazil, Russia, India, China and South Africa (BRICS) are used. The cross-sectional multivariate analyses are used to test the hypotheses. Findings Utilizing a sample of worldwide acquisitions conducted by EMFs originated from BRICS, this study establishes that various cross-national distances do not consistently cause the targets to take on the parent’s CVI. While economic distance and formal institutional distance increase the likelihood of an acquired subsidiary’s CVI change, cultural distance decreases the likelihood of CVI change. Practical implications Lacking international experience and shaped by national differences between the host and home markets, EMFs often grant foreign subsidiaries substantial autonomy to respond to diverse stakeholder demands in subsidiary branding. Contrary to extant literature, the findings show that some distances are more pertinent to CVI transformation in the subsidiaries than others in the context of the EMFs. Originality/value This research shows that the formal institutional distance and economic distance will increase the likelihood of CVI changes in the subsidiaries, whereas, the cultural distance requiring soft skills like the cultural adaptability from the EMFs will decrease the CVI change possibility. The findings presented in the paper have significant implications for future research and strategic application.

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 Pay for Being Responsible: The Effect of Target Firm’s Corporate Social Responsibility on Cross-Border Acquisition Premiums

2019 ◽  
Vol 11 (5) ◽  
pp. 1291 ◽  
Author(s):  
Lu Qiao ◽  
Jianfeng Wu
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Cultural Distance ◽  
Institutional Distance ◽  
Target Firm ◽  
Socially Responsible ◽  
Cross Border ◽  
Acquisition Premium ◽  
Corporate Social

This study examines the effect of a target firm’s corporate social responsibility (CSR) on its cross-border acquisition premium. Building upon the resource-based view and the institutional theory, we argue that the target firm’s CSR positively affect the cross-border acquisition premium, while institutional distance, cultural distance, and the number of fellow acquisitions moderate the above relationship. Hypotheses are tested in a sample of 252 cross-border acquisitions between 1991 and 2016. Empirical findings show that an acquirer is more likely to pay a higher acquisition premium when acquiring a socially responsible target firm; furthermore, such an effect weakens as institutional distance, cultural distance, and the number of fellow acquisitions increase. This study extends existing research on the importance of CSR as a strategic asset and sheds new light on the role of CSR played in the setting of cross-border acquisitions.

A literature review on firms' internationalisation through e-commerce

2019 ◽  
pp. 121-143
Author(s):  
Riccardo Resciniti ◽  
Federica De Vanna
Keyword(s):  
Systematic Review ◽  
Literature Review ◽  
International Business ◽  
Decision Process ◽  
Foreign Markets ◽  
New Markets ◽  
Integrative Framework ◽  
The Past ◽  
The Relationship

The rise of e-commerce has brought considerable changes to the relationship between firms and consumers, especially within international business. Hence, understanding the use of such means for entering foreign markets has become critical for companies. However, the research on this issue is new and so it is important to evaluate what has been studied in the past. In this study, we conduct a systematic review of e-commerce and internationalisation studies to explicate how firms use e-commerce to enter new markets and to export. The studies are classified by theories and methods used in the literature. Moreover, we draw upon the internationalisation decision process (antecedents-modalities-consequences) to propose an integrative framework for understanding the role of e-commerce in internationalisation

Employees’ Motivation for Creating International Business Venture: The Role of Perceived Competence and Job Satisfaction

2020 ◽  
Vol 25 (2) ◽  
Author(s):  
Anh D. Pham ◽  
Men T. Bui ◽  
Dung P. Hoang
Keyword(s):  
Job Satisfaction ◽  
International Business ◽  
Structural Equation ◽  
Positive Impact ◽  
Entrepreneurial Intention ◽  
Perceived Competence ◽  
Equation Model ◽  
Network Building ◽  
Perceived Desirability

This research investigates the determinants of entrepreneurial intention among Vietnamese employees, a crucial segment of potential entrepreneurs yet mostly neglected in previous studies. Given the focus on intention to create an international business venture and the working segment, we expand the entrepreneurial event theory by supplementing perceived competence and job satisfaction as determinants of entrepreneurial intention while testing the mediation of perceived feasibility and perceived desirability in such relationships correspondingly. Three focus groups on 27 Vietnamese employees were conducted to explore the specific relevant competences and develop the conceptual model. Afterwards, data from an empirical survey on 567 Vietnamese employees was analysed using a partial least squares structural equation model to test the hypothesised relationships. The empirical results indicate that perceived competences, viz. administrative competence, communication skills, network building competence, and international business expertise have a positive impact on entrepreneurial intention. The relationships between either administrative competence, network building capacity or international business expertise, and entrepreneurial intention are totally mediated by perceived feasibility. The study also reveals a noteworthy finding about the negative direct effect of overall job satisfaction on entrepreneurial intention and the partial mediating role of perceived desirability in this relationship.

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