The paper provides a state-of-the-art review of several innovative advances in culture and international business (IB) to stimulate new avenues for future research. We first review the issues surrounding cultural convergence and divergence, and the processes underlying cultural changes. We then examine novel constructs for characterizing cultures, and how to enhance the precision of cultural models by pinpointing when cultural effects are important. Finally, we examine the usefulness of experimental methods, which are rarely used by IB researchers. Implications of these path-breaking approaches for future research on culture and IB are discussed. Journal of International Business Studies (2005) 36, 357–378. doi:10.1057/palgrave.jibs.8400150
spectively. Data in this paper were originally collected for a cross-cultural experimental study, reported in Buchan et al. (1998). The authors thank Eric Johnson for his help and support, as well as Bingfu Chen, Wujin Chu, and Hotatka Katahira, and their research assistants, for their help in collecting the data for this research. 1 This game is similar to the trust game in David Kreps (1990) and the peasant-dictator game in John Van Huyck et al. (1995). All have the same prediction that play should end immediately, even though strict Pareto improvements to payoffs can be found in later stages. For a detailed comparison of the games see Berg et al. (1995).
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