- مبلغ: ۸۶,۰۰۰ تومان
- مبلغ: ۹۱,۰۰۰ تومان
Cultural distance is one of the most widely used distance construct in international business. However, scholars have long questioned the notion that cultural distance has a homogenous impact on organizational actions and performance. We redress this by examining how the relationship between cultural differences and deal abandonment in cross-border acquisitions is contingent on firm-level cultural experience reserve and industry affiliation. Drawing on the organizational learning theory and cultural friction perspective, we first propose that the cultural experience reserve of a focal firm mitigates the positive impact of cultural differences on cross-border deal abandonment. We then hypothesize that the firm’s industry context affects the uncertainties associated with cultural differences. Our findings based on a sample of 197 Indian services sector firms support our theoretical predictions.
5. Discussion and conclusion
As a focal construct for IB, cultural distance has infiltrated multiple theoretical and empirical contexts as a proxy for the conceptualisation of environmental uncertainty (Luo & Shenkar, 2011; Shenkar, 2012). Despite an impressive body of knowledge in IB literature, which analyses relationships between cultural distance and various firm level outcomes, we do not yet have a clear understanding of the role of culture. Scholars have attributed this inadequate understanding to the superficial manner in which country-level cultural scores are applied to firm level outcomes. To address these limitations, scholars have called for a more finegrained analysis to study the effect of cultural difference (Stahl & Voigt, 2008). Given the state of literature, our primary motivation was to understand if the effect of cultural distance is homogenous across all firms. To this end, we explore whether learning accrued from prior experience of firms in similar country cultures conditions the relationship between country-level cultural distance scores and the probability of cross-border M&A deal abandonment. Further, we also investigated whether a firm’s industry context sets the boundary conditions for the effect of cultural distance.