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Reconceptualizing cultural distance: The role of cultural experience reserve in cross-border acquisitions
, Akbar M, Kumar V, Gaur A
Published in Elsevier
2015
Volume: 51
   
Issue: 3
Pages: 404 - 412
Abstract
Cultural distance is one of the most widely used distance construct in international business. However, scholars have long questioned the notion that cultural distance has a homogenous impact on organizational actions and performance. We redress this by examining how the relationship between cultural differences and deal abandonment in cross-border acquisitions is contingent on firm-level cultural experience reserve and industry affiliation. Drawing on the organizational learning theory and cultural friction perspective, we first propose that the cultural experience reserve of a focal firm mitigates the positive impact of cultural differences on cross-border deal abandonment. We then hypothesize that the firm's industry context affects the uncertainties associated with cultural differences. Our findings based on a sample of 197 Indian services sector firms support our theoretical predictions.
About the journal
JournalData powered by TypesetJournal of World Business
PublisherData powered by TypesetElsevier
ISSN1090-9516
Open AccessNo
Concepts (3)
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