An improvement to Kogut and Singh measure of cultural distance considering the relationship among different dimensions of culture

Kandoğan, Yener

doi:10.1016/j.ribaf.2011.11.001

Cited by 54 publications

(62 citation statements)

References 22 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…covariance matrix and the same four-dimensional vector -divided the number of dimensions. Thus, the Modified Mahalanobis distance accounts for different variances of each dimension and the covariance between them while being comparable to the standard Kogut and Singh index in magnitude (Kandogan, 2012).…”

Section: Equationmentioning

confidence: 93%

“…The dimensions identified by Hofstede (Table 4) deals with stereotypes and symbols in terms of power distance, individualism/collectivism, masculinity/feminism, and uncertainty avoidance. Hofstede has since the introduction of the four cultural dimensions added two more dimensions, but they are often excluded in studies incorporating a composite index of cultural distance due to missing data (Kogut & Singh, 1988;Ionascu, Meyer, & Estrin, 2004;Kandogan, 2012). Power distance Society's acceptance of unequal distribution of power.…”

Section: Cognitive Institutionsmentioning

confidence: 99%

“…Moreover, some of the dimensions are highly correlated. To avoid such correlations, and to measure cultural distance as such and not the effect of the individual dimensions (Shenkar, 2001), I utilise a construct that measures cultural distance as a composite index of the four dimensions (Kogut & Singh, 1988;Kandogan, 2012). This method will differ from other measure of distance used in this…”

Section: Masculinity Versus Feminismmentioning

confidence: 99%

“…To remedy the situation Kandogan (2012) suggests using a modified Mahalanobis distance that recognises the non-zero covariance among the Hofstede dimensions to measure cultural distance between two countries:…”

Section: Equationmentioning

confidence: 99%

“…In summation, as shown by Kandogan (2012), the Modified Mahalanobis distance is a truer, undistorted, measure of the cultural distance between home and host countries than the standard Kogut & Singh (1988) measure. Moreover, by using metric MDS I am able to visually determine if the calculated distances result in clusters of countries with similar cultural traits compared to a nonmetric MDS visualisation as suggested by .…”

Section: Equationmentioning

confidence: 99%

See 4 more Smart Citations

Global cities and liability of foreignness

Mehlsen

Wernicke

2016

EJIM

View full text Add to dashboard Cite

In recent years, more attention have been given to the sub-national determinants of multinational enterprises' location behaviour. However, the role of 'global cities' has received limited attention despite their central position in the global economy. In this thesis, I analyse and discuss the concepts of location, the liability of foreignness caused by MNEs' spatial separation of foreign operations, and their relation to the factors that drive MNEs toward, or away from, global cities. Rooted in the existing literature on global cities, I follow the arguments that three interrelated distinct characteristics of global cities -cosmopolitanism, interconnectedness, and availability of advanced producer services -help the MNEs overcome the social costs of doing business abroad. In addition, I identify MNEs' operations that benefit or suffer from the locational attributes of global cities, and how they in turn relate to the liability of foreignness associated with the international operations of MNEs. Consistent with these arguments, I operationalise the liability of foreignness as institutional distance and analyse its influence on the location of a large sample of subsidiaries from Nordic and Japanese MNEs. My results indicate that not only do MNEs have a strong propensity to locate in global cities, but also that these choices are affected by institutional distance and industrial characteristics of R&D-and advertising-intensity. Consequently, my results provide empirical support for the arguments of global cities' role in the processes of globalisation, the co-evolution of global cities and MNEs, and the ability of global cities to reduce the liability of foreignness suffered by MNEs. Ultimately, my study contributes to the understanding of the implication of location and distance on MNEs' international strategies, but also points to further investigation on the role of global cities in the nexus of place, space, and organisation to expand our knowledge on the geographic aspect of MNE behaviour.II

show abstract

Section: Equationmentioning

confidence: 93%

Section: Cognitive Institutionsmentioning

confidence: 99%

Section: Masculinity Versus Feminismmentioning

confidence: 99%

Section: Equationmentioning

confidence: 99%

Section: Equationmentioning

confidence: 99%

See 3 more Smart Citations

Global cities and liability of foreignness

Mehlsen

Wernicke

2016

EJIM

View full text Add to dashboard Cite

show abstract

Flexibility as firm value driver: Evidence from offshore outsourcing

Choi

Kotabe

et al. 2017

Global Strategy Journal

View full text Add to dashboard Cite

Research Summary This article tests real options theory predictions that uncertainty and flexibility are key value drivers for offshore outsourcing moderated by switching costs. Examining firm‐specific and market data for outsourcing cases by U.S. firms, we find that the impact of market and environmental uncertainty and flexibility on outsourcing value is net positive and that it is greater for offshore than for domestic outsourcing. Outsourcing benefits are related to flexibility arising from growth options and moderated by switching costs underlying outsourcing activities, including loss of innovative capability and economic, institutional, and cross‐country cultural differences. Managerial Summary In the popular business literature, the “footloose” nature of outsourcing strategy characterized by an outsourcing firm's flexibility, as well as the ability in finding appropriate suppliers on a global basis, has often been touted as an important means of dealing with market uncertainty. However, the academic literature has not offered direct empirical support for the inherent value of such outsourcing strategies. Our study shows that firms tend to perform better financially when they have such outsourcing flexibility under uncertain market and environmental conditions, although this relationship may be somewhat weakened by potential loss of innovative capability and cultural and other differences in dealing with foreign suppliers.

show abstract

Signaling legitimacy across institutional contexts—The intermediary role of corporate social responsibility rating agencies

Kölbel

Busch²

2019

Global Strategy Journal

View full text Add to dashboard Cite

Research Summary Good corporate social responsibility (CSR) ratings can increase a firm's legitimacy and reduce its default risk. Yet, the interpretation of CSR varies between different countries. We investigate whether CSR ratings have a risk‐mitigating effect across different institutional contexts. We find that good CSR ratings have a general risk‐mitigating effect. Yet, we also find that the effect decreases when the rating agency is embedded in the institutional context of its home country and the rated firm operates in a country with a different culture or regulatory system. This suggests that a rating agency's country of origin and its embeddedness in that country's context play an important role in the relationship between CSR ratings and default risk. Managerial Summary In this article, we investigate to what extent CSR rating agencies signal organizational legitimacy across institutional contexts. Specifically, we evaluate how institutional distance between the rating agency and the rated firm moderates the negative effect of the CSR rating on the firm's default risk. We compare two CSR rating agencies, OEKOM, which is strongly embedded in its institutional context, and ASSET4, which operates across diverse institutional contexts. Based on a panel of 604 firms in 13 countries from 2011 to 2016, we show that CSR ratings from both rating agencies have a risk‐mitigating main effect. Yet, only in the case of OEKOM is the effect negatively moderated by regulatory and cultural distance. Thus, the legitimating effect of institutionally embedded CSR rating agencies decreases with institutional distance.

show abstract

An improvement to Kogut and Singh measure of cultural distance considering the relationship among different dimensions of culture

Cited by 54 publications

References 22 publications

Global cities and liability of foreignness

Global cities and liability of foreignness

Flexibility as firm value driver: Evidence from offshore outsourcing

Signaling legitimacy across institutional contexts—The intermediary role of corporate social responsibility rating agencies

Contact Info

Product

Resources

About