Cultural distance, investment flow, and control in cross-border cooperation

Seung Hyun Lee; Oded Shenkar; Jiatao Li

doi:10.1002/smj.685

Cultural distance, investment flow, and control in cross-border cooperation

Seung Hyun Lee, Oded Shenkar, Jiatao Li

Research output: Journal Publication › Review article › peer-review

96 Citations (Scopus)

Abstract

Previous research analyzing the impact of cultural distance on joint venture negotiations has often confounded firm and environment effects. To decouple these effects, the cross-border cooperation preferences of small and medium-sized Korean firms were studied, considering simultaneously firms involved in inward and outward investment ventures. While cultural distance showed no significant relationship with the degree of control sought over the cooperative ventures, cultural distance was significantly related with a preference for ventures in domestic or foreign markets. The impact of cultural distance was found to be greater in inward investment than in outward investment.

Original language	English
Pages (from-to)	1117-1125
Number of pages	9
Journal	Strategic Management Journal
Volume	29
Issue number	10
DOIs	https://doi.org/10.1002/smj.685
Publication status	Published - Oct 2008
Externally published	Yes

Keywords

Alliance
Cultural distance
Direction of investment

ASJC Scopus subject areas

Business and International Management
Strategy and Management

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1002/smj.685

Cite this

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abstract = "Previous research analyzing the impact of cultural distance on joint venture negotiations has often confounded firm and environment effects. To decouple these effects, the cross-border cooperation preferences of small and medium-sized Korean firms were studied, considering simultaneously firms involved in inward and outward investment ventures. While cultural distance showed no significant relationship with the degree of control sought over the cooperative ventures, cultural distance was significantly related with a preference for ventures in domestic or foreign markets. The impact of cultural distance was found to be greater in inward investment than in outward investment.",

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AU - Shenkar, Oded

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N2 - Previous research analyzing the impact of cultural distance on joint venture negotiations has often confounded firm and environment effects. To decouple these effects, the cross-border cooperation preferences of small and medium-sized Korean firms were studied, considering simultaneously firms involved in inward and outward investment ventures. While cultural distance showed no significant relationship with the degree of control sought over the cooperative ventures, cultural distance was significantly related with a preference for ventures in domestic or foreign markets. The impact of cultural distance was found to be greater in inward investment than in outward investment.

AB - Previous research analyzing the impact of cultural distance on joint venture negotiations has often confounded firm and environment effects. To decouple these effects, the cross-border cooperation preferences of small and medium-sized Korean firms were studied, considering simultaneously firms involved in inward and outward investment ventures. While cultural distance showed no significant relationship with the degree of control sought over the cooperative ventures, cultural distance was significantly related with a preference for ventures in domestic or foreign markets. The impact of cultural distance was found to be greater in inward investment than in outward investment.

KW - Alliance

KW - Cultural distance

KW - Direction of investment

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M3 - Review article

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Cultural distance, investment flow, and control in cross-border cooperation

Abstract

Keywords

ASJC Scopus subject areas

UN SDGs

Access to Document

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