Objective – Globalization has enabled the increase of competitiveness and opportunities for companies to sell their goods to worldwide consumers. Due to the wider range of products offered and increasing similarity of those products, the country of origin becomes an important variable when...

Das Konzept der psychischen Distanz ist von zentraler Bedeutung für die International Management Forschung. Es beschreibt, wie nah oder ähnlich wir uns fremden Nationen und deren Bewohnern fühlen oder auch wie stark wir uns von ihnen unterscheiden, ob in realen oder nur subjektiv...

This paper studies if 'cultural distance' between two firms determines the entry mode of a foreign organization. We study two different modes of entering a market: cooperative agreements and acquisitions. We analyze a database that gathers 1,292 cooperative ventures and acquisitions in ten Latin...

Prior research has argued that multinational enterprises (MNEs) prefer to enter culturally-distant countries through greenfields rather than through acquisitions, since acquisitions in such countries are costlier to manage. This argument contains two hidden assumptions: (1) the additional costs...

Anecdotal evidence suggests that new CEOs with foreign backgrounds direct their firms to become more international in their operations. We examine this hypothesis formally using data on U.S. S&P-500 manufacturing firms from 1992 through 1997 and biographical information on CEOs' birth and...

This study investigates whether the cultural distance between Korea and the home countries of foreign subsidiaries in Korea affects the subsidiaries’ financial performance. It contributes to the literature on international business in that it sheds light on cultural distance, a...