Seeking a Friend and Ally

Hyde, Steven J.; Bachura, Eric; Kamal, Darcy Fudge; Thornton-Lugo, Meghan A.

doi:10.5465/ambpp.2021.6

Cited by 1 publication

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“…This condition can hinder entrepreneurial activities because running a business involves making difficult decisions that could cause hurt feelings among the members of a network; they will try to evade this situation (Weinberger et al, 2010). Accordingly, this cultural attribute could be a determinant for networking behaviors as individuals from these societies will build relationships and will try to maintain them (Hyde et al, 2021). However, not necessarily are going to use those links because their main interest is not to pursue an instrumental purpose but to build networks (Wolff et al, 2018).…”

Section: Cultural Dimensions Ethnic Network and Foreign Direct Invest...mentioning

confidence: 99%

When do ethnic networks help with foreign direct investment location?

Alcaráz

Salamanca

2022

RIBS

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Purpose The purpose of this paper is to identify how the cultural attributes of ethnic networks affect foreign direct investment (FDI) location. Design/methodology/approach The study tests on panel data the effect of ethnic networks in interaction with their member’s cultural attributes on FDI location. Findings Results show that ethnic networks whose members predominantly exhibit a human orientation do not affect FDI location. However, when performance orientation is the predominant cultural attribute of the members of an ethnic network, there is a positive and significant effect on FDI location. Practical implications Managers need to be aware that not all networks will be equally helpful in achieving particular goals. For instance, ethnic networks where the performance orientation is dominant among their members affect FDI location, unlike ethnic networks where human orientation is dominant. Therefore, decision-makers need to identify and align these two elements (networks and goals) to maximize outcomes. Originality/value This study contributes to the literature by suggesting that FDI location is affected by ethnic networks where performance orientation is dominant among the members, which is not the case when human orientation is dominant among the members of the ethnic networks.

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Section: Cultural Dimensions Ethnic Network and Foreign Direct Invest...mentioning

confidence: 99%