The Kogut and Singh national cultural distance index: Time to start using it as a springboard rather than a crutch

Robbert Maseland, Douglas Dow*, Piers Steel

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

18 Citations (Scopus)

Abstract

This Counterpoint investigates the continued relevance of the 30-year-old Kogut and Singh (KS) index of cultural distance. KS was a seminal contribution, highlighting the relevance of cultural differences in IB. However, since then, simplistic replications of the original arguments and index have prevented us from progressing towards a better understanding of how cross-national differences matter. We discuss the mechanisms underlying the construct and how they relate to the algorithm, data, and its critiques. We call for more theoretically informed approaches, highlighting the underlying mechanisms, and specifying which data and algorithms best capture those mechanisms in each research context.

Original languageEnglish
Pages (from-to)1154-1166
Number of pages13
JournalJournal of International Business Studies
Volume49
Issue number9
DOIs
Publication statusPublished - Dec-2018

Keywords

  • cultural distance
  • psychic distance
  • institutional distance
  • transaction cost theory
  • transaction cost economics or transaction cost analysis
  • institutional theory
  • internationalization theories and foreign market entry
  • new internalization theory
  • ENTRY MODE CHOICE
  • INSTITUTIONAL DISTANCE
  • INTERNATIONALIZATION PROCESS
  • TRANSACTION COSTS
  • LIABILITY
  • FIRM
  • METAANALYSIS
  • FOREIGNNESS
  • ACQUISITION
  • MATTER

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