An institutional approach to cross-national distance

Cross-national distance is a key concept in the field of management. Previous research has conceptualized and measured cross-national differences mostly in terms of dyadic cultural distance, and has used the Euclidean approach to measuring it. In contrast, our goal is to disaggregate the construct o...

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Published inJournal of international business studies Vol. 41; no. 9; pp. 1460 - 1480
Main Authors Berry, Heather, Guillén, Mauro F, Zhou, Nan
Format Journal Article
LanguageEnglish
Published London Palgrave Macmillan 01.12.2010
Palgrave Macmillan UK
SeriesJournal of International Business Studies
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Abstract Cross-national distance is a key concept in the field of management. Previous research has conceptualized and measured cross-national differences mostly in terms of dyadic cultural distance, and has used the Euclidean approach to measuring it. In contrast, our goal is to disaggregate the construct of distance by proposing a set of multidimensional measures, including economic, financial, political, administrative, cultural, demographic, knowledge, and global connectedness as well as geographic distance. We ground our analysis and choice of empirical dimensions on institutional theories of national business, governance, and innovation systems. In order to overcome the methodological limitations of the Euclidean approach, we calculate dyadic distances using the Mahalanobis method, which is scaleinvariant and takes into consideration the variance-covariance matrix. We empirically analyze four different foreign expansion choices of US companies to illustrate the importance of disaggregating the distance construct and the usefulness of our distance calculations, which we make freely available to managers and scholars.
AbstractList Cross-national distance is a key concept in the field of management. Previous research has conceptualized and measured cross-national differences mostly in terms of dyadic cultural distance, and has used the Euclidean approach to measuring it. In contrast, our goal is to disaggregate the construct of distance by proposing a set of multidimensional measures, including economic, financial, political, administrative, cultural, demographic, knowledge, and global connectedness as well as geographic distance. We ground our analysis and choice of empirical dimensions on institutional theories of national business, governance, and innovation systems. In order to overcome the methodological limitations of the Euclidean approach, we calculate dyadic distances using the Mahalanobis method, which is scale-invariant and takes into consideration the variance–covariance matrix. We empirically analyze four different foreign expansion choices of US companies to illustrate the importance of disaggregating the distance construct and the usefulness of our distance calculations, which we make freely available to managers and scholars.
Cross-national distance is a key concept in the field of management. Previous research has conceptualized and measured cross-national differences mostly in terms of dyadic cultural distance, and has used the Euclidean approach to measuring it. In contrast, our goal is to disaggregate the construct of distance by proposing a set of multidimensional measures, including economic, financial, political, administrative, cultural, demographic, knowledge, and global connectedness as well as geographic distance. We ground our analysis and choice of empirical dimensions on institutional theories of national business, governance, and innovation systems. In order to overcome the methodological limitations of the Euclidean approach, we calculate dyadic distances using the Mahalanobis method, which is scale-invariant and takes into consideration the variance-covariance matrix. We empirically analyze four different foreign expansion choices of US companies to illustrate the importance of disaggregating the distance construct and the usefulness of our distance calculations, which we make freely available to managers and scholars. Reprinted by permission of Palgrave Macmillan Ltd.
Cross-national distance is a key concept in the field of management. Previous research has conceptualized and measured cross-national differences mostly in terms of dyadic cultural distance, and has used the Euclidean approach to measuring it. In contrast, our goal is to disaggregate the construct of distance by proposing a set of multidimensional measures, including economic, financial, political, administrative, cultural, demographic, knowledge, and global connectedness as well as geographic distance. We ground our analysis and choice of empirical dimensions on institutional theories of national business, governance, and innovation systems. In order to overcome the methodological limitations of the Euclidean approach, we calculate dyadic distances using the Mahalanobis method, which is scale-invariant and takes into consideration the variance-covariance matrix. We empirically analyze four different foreign expansion choices of US companies to illustrate the importance of disaggregating the distance construct and the usefulness of our distance calculations, which we make freely available to managers and scholars. [PUBLICATION ABSTRACT]
Cross-national distance is a key concept in the field of management. Previous research has conceptualized and measured cross-national differences mostly in terms of dyadic cultural distance, and has used the Euclidean approach to measuring it. In contrast, our goal is to disaggregate the construct of distance by proposing a set of multidimensional measures, including economic, financial, political, administrative, cultural, demographic, knowledge, and global connectedness as well as geographic distance. We ground our analysis and choice of empirical dimensions on institutional theories of national business, governance, and innovation systems. In order to overcome the methodological limitations of the Euclidean approach, we calculate dyadic distances using the Mahalanobis method, which is scaleinvariant and takes into consideration the variance-covariance matrix. We empirically analyze four different foreign expansion choices of US companies to illustrate the importance of disaggregating the distance construct and the usefulness of our distance calculations, which we make freely available to managers and scholars.
Author Zhou, Nan
Berry, Heather
Guillén, Mauro F
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  surname: Guillén
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– sequence: 3
  givenname: Nan
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BackLink http://econpapers.repec.org/article/paljintbs/v_3a41_3ay_3a2010_3ai_3a9_3ap_3a1460-1480.htm$$DView record in RePEc
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Snippet Cross-national distance is a key concept in the field of management. Previous research has conceptualized and measured cross-national differences mostly in...
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StartPage 1460
SubjectTerms Business and Management
Business management
Business strategies
Business Strategy/Leadership
Business structures
Countries
Cross-national analysis
Cultural differences
Cultural diversity
Cultural dynamics
Cultural values
Culture
Demography
Entrepreneurs
Foreign subsidiaries
Gross domestic product
Host country
Human resource management
Individualism
International Business
International trade
Literature
Management
Management research
Management techniques
Market entry
Multinational corporations
Organization
Organization theory
Strategic management
Studies
Title An institutional approach to cross-national distance
URI https://www.jstor.org/stable/40928299
http://dx.doi.org/10.1057/jibs.2010.28
https://link.springer.com/article/10.1057/jibs.2010.28
http://econpapers.repec.org/article/paljintbs/v_3a41_3ay_3a2010_3ai_3a9_3ap_3a1460-1480.htm
https://www.proquest.com/docview/812102932/abstract/
https://search.proquest.com/docview/847098451
Volume 41
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