International Management as Management of Diversity: Reconceptualizing Distance as Diversity

Abstract

Despite the importance of distance in international business and management research, the theoretical foundation for the concept and the underlying causal mechanisms are subject to shortcomings. We propose reinvigorating the study of distance through a diversity lens. We draw on research on diversity and develop a theoretical framework that distinguishes types of diversity (separation, variety, and disparity) at three levels (institutional, organizational, and individual). We show how this framework allows scholars to extend their analysis of distance, revisit important questions, and explore new issues. We discuss the theoretical and empirical implications of our diversity lens for the international business and management community.

The inverted curvilinear effects of business relationships on institutional success: the moderating role of global role complexity

“…The measure includes the manager's role related to dealing with diversity in languages, people and processes across national, organizational and functional areas while operating in a foreign country. This is consistent with the recent discussion of using diversity measures to operationalize traditional distance measures within international business (Lumineau et al , 2021).…”

“…AE managers doing business in EEs, or vice versa). If this can be confirmed through future research, it carries important theoretical implications for recent developments in distance-as-diversity research within the international business literature (Lumineau et al , 2021).…”

“…The present case of Indian managers doing business with New Zealand can be argued as a case of lower interdependence BRELs, which is very important in terms of understanding the dynamics of the relational view (Dyer et al , 2018) and has implications for (a)symmetry within the distance concept (Lumineau et al , 2021). The lower interdependence stems from the fact that these are not formal alliances requiring investments in relationships and knowledge sharing routines.…”

“…As institutions take on the function of game rules, the quality of the institutional environment and differences in such quality (compared to their home country) pose operating challenges, if such differences are not well understood (North, 1990). This is particularly the case under conditions of greater diversity/complexity between home–host contexts, which has a knock-on effect on information processing and managerial decision-making (Lumineau et al , 2021). Institutional challenges may arise because of differences in formal (e.g.…”

“…Both the institutional difference-driven risks and uncertainties (Puranam and Vanneste, 2009) and role complexity-based challenges (Sting et al , 2019) increase levels of interdependence and thus enhance the role of BRELs in navigating the distance–diversity–complexity nexus. Within the international business literature, Lumineau et al (2021) have recently suggested that various forms of diversity (e.g. separation, variety and disparity) compound traditional distance effects at institutional and individual levels and thus feed into complexity of information, knowledge or experience.…”