Title: Cultural distance and the performance of international joint ventures: a critical assessment of model specifications and variable measurement

Authors: Jeppe Christoffersen; Steven Globerman; Bo Bernhard Nielsen

Addresses: Department of Accounting and Auditing, Copenhagen Business School, Solbjerg Plads 3, C 4.29, DK-2000 Frederiksberg, Denmark ' Kaiser Professor of International Business, Western Washington University, College of Business and Economics, Bellingham, WA 98225-9075, USA ' Department of Strategic Management and Globalization, Copenhagen Business School, Porcelaenshaven 24B, 1st floor, DK-2000 Frederiksberg, Denmark

Abstract: This study provides a critical summary and assessment of the empirical literature on the relationship between cultural distance and the performance of international joint ventures (IJVs) based on studies published over the period 1993-2008. The existing literature reports inconsistent and largely statistically insignificant findings for the relationship. We add to this literature by analysing some 63 empirical studies of the cultural distance - IJV performance linkage. We further confirm the absence of any consistent and statistically significant linkage, despite strong conceptual arguments for anticipating a strong empirical relationship. We also evaluate different proposed explanations of the weak empirical findings in the literature and find some mixed support for these explanations. We conclude with some suggestions for improving the modelling of the cultural distance - IJV performance relationship.

Keywords: cultural distance; international joint ventures; IJV performance; model specification; variable measurement; modelling; strategic alliances.

DOI: 10.1504/IJSBA.2013.058299

International Journal of Strategic Business Alliances, 2013 Vol.3 No.1, pp.93 - 119

Received: 15 Jul 2013
Accepted: 30 Sep 2013

Published online: 19 Jul 2014 *

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