Impact of cultural positions on FDI's entry mode. Issue 3 (3rd August 2015)

• Record Type: Journal Article
• Authors: López-Duarte, Cristina; Vidal-Suárez, Marta M.; González-Díaz, Belén
• Is Part Of: Cross cultural management. Volume 22:Issue 3(2015)
• Page Start: 509
• Page End: 526
• Publication Date: 2015-08-03
• Subjects: Management -- Cross-cultural studies -- Periodicals; Management -- Social aspects -- Periodicals; International business enterprises -- Management -- Social aspects -- Periodicals; Diversity in the workplace -- Periodicals; 658
• DOI: 10.1108/CCM-07-2014-0086
• Languages: English
• ISSNs: 1352-7606

Abstract

<abstract> <title> <x content-type="archive" xml:space="preserve">Abstract</x> </title> <sec> <title content-type="abstract-heading">Purpose</title> <p> – The purpose of this paper is to study the influence of cultural positions on the choice of entry mode in foreign direct investment (FDI) – joint ventures vs wholly owned subsidiaries. The paper focusses on the impact of cultural positions along four cultural dimensions, as well as on the interactions between these positions and FDI's contextual variables (i.e. linguistic differences). </p> </sec> <sec> <title content-type="abstract-heading">Design/methodology/approach</title> <p> – A fuzzy set qualitative comparative analysis is performed on a data set of Spanish investments located in the European Union. </p> </sec> <sec> <title content-type="abstract-heading">Findings</title> <p> – Existence of interaction effects among cultural positions along different dimensions, as well as between cultural positions and FDI's contextual variables. </p> </sec> <sec> <title content-type="abstract-heading">Research limitations/implications</title> <p> – Main limitations relate to the data set, as only FDIS carried out by big corporations and coming from a single country are considered. </p> </sec> <sec> <title content-type="abstract-heading">Practical implications</title> <p> – Managers making decisions on the choice of entry mode must take into account the position relative to each individual cultural dimension, as well as its interaction with other cultural dimensions and FDI's contextual variables, rather than just considering cultural distances (CDs) between countries. </p> </sec> <sec> <title content-type="abstract-heading">Originality/value</title> <p> – First, focus on cultural positions (rather than CDs). It allows taking into account both the cultural characteristics of each party and their relative values along individual cultural dimensions. Second, development of a qualitative analysis that considers the contextual features of the investment.</p> </sec> </abstract>