The impact of home-host cultural distance on foreign affiliate sales: The moderating role of cultural variation within host countries

Sjoerd Beugelsdijk*, Arjen Slangen, Robbert Maseland, Marjolijn Onrust

*Bijbehorende auteur voor dit werk

OnderzoeksoutputAcademicpeer review

41 Citaten (Scopus)

Samenvatting

Research on how multinational firms deal with home-host cultural differences argues that cultural differences are minimized and assumes that foreign cultures are homogenous. In this paper we relax the cultural homogeneity assumption. In the presence of cultural variation in host countries the minimization of cultural differences leads existing mean-based indices of cultural differences to overestimate the actual cultural differences these firms have to deal with. We test this argument in a 25-year panel analysis of total US multinationals' foreign sales in 54 host countries. At the sample average of cultural variation, the use of mean cultural difference indices yields a 74% overestimate of the actual cultural difference effect. This suggests that home-host cultural differences are a substantially smaller barrier to multinational sales than hitherto assumed. The assumption of cultural homogeneity leads to conclusions in which a too large role is attributed to cultural differences. (C) 2013 Elsevier Inc. All rights reserved.

Originele taal-2English
Pagina's (van-tot)1638-1646
Aantal pagina's9
TijdschriftJournal of Business Research
Volume67
Nummer van het tijdschrift8
DOI's
StatusPublished - aug-2014

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