Title: Cultural diversity and culture specific experiences effect on development of institutional experiential knowledge in SMEs

Authors: Kent Eriksson, Jukka Hohenthal, Jessica Lindbergh

Addresses: CEFIN, The Centre for Banking and Finance, Department of Infrastructure, KTH – The Royal Institute of Technology, 100 44 Stockholm, Sweden. ' Department of Business Studies, Uppsala University, Box 513, 751 20 Uppsala, Sweden. ' Department of Business Studies, Uppsala University, Box 513, 751 20 Uppsala, Sweden

Abstract: Institutional experiential knowledge results from experience of cultural diversity and culture specific experiences. It is studied empirically through a field-scenario questionnaire of ongoing business relationships. Cultural diversity has a negative effect on a firm|s institutional experiential knowledge, whereas culture specific experience has a positive effect. These two experiences contribute very differently to the development of institutional experiential knowledge and the interaction effect should enable one to differentiate kinds of experience, and thus gain greater insight into scale and scope economies.

Keywords: cultural diversity; institutional experiential knowledge; SMEs; business relationships.

DOI: 10.1504/IJESB.2004.005379

International Journal of Entrepreneurship and Small Business, 2004 Vol.1 No.1/2, pp.100 - 120

Available online: 29 Sep 2004 *

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