Title: Evaluating the effects of cultural and psychic distance on multinational corporate performance: a meta-analysis

Authors: Anthi Avloniti; Fragkiskos Filippaios

Addresses: School of Business and Management, University of Central Lancashire, Cyprus 12–14 University Avenue, Pyla 7080, Larnaka, Cyprus ' Kent Business School, University of Kent, Canterbury CT2 7PE, Kent, UK

Abstract: The conceptual and empirical relationship between cultural and psychic distance (CD&PD) and multinational enterprises' (MNE) performance is a subject that still remains considerably underexplored. Regardless of the large number of studies, previous studies have delivered a mixed bag of results. Although previous meta-analyses have analysed the overall relationship as presented in the literature, they did not produce in-depth investigations of the moderators of the relationship. In this paper, we claim that it is this lack of moderators which is the potential source of inconsistency in literature findings. Using a sample of 56 articles, the meta-analysis results indicate that different variables advocate a different relationship between CD&PD and multinational enterprises' performance, thus confirming the vast number of moderators for the relationship as well as their crucial role. The most important sources of inconsistency identified from the analysis are the different measures used to capture the CD&PD and multinational enterprises' performance.

Keywords: cultural distance; psychic distance; performance; meta-analysis.

DOI: 10.1504/GBER.2018.088481

Global Business and Economics Review, 2018 Vol.20 No.1, pp.54 - 87

Received: 22 Nov 2015
Accepted: 05 May 2016
Published online: 11 Dec 2017 *

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