Cultural Influences on Foreign Direct Investment
Autor(a) principal: | |
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Data de Publicação: | 2019 |
Outros Autores: | , |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Internext |
Texto Completo: | https://internext.espm.br/internext/article/view/458 |
Resumo: | The current business competitive environment has influenced companies to cross national borders to explore foreign markets. The decision about in which country the company should invest isn’t easy. Many factors can influence this decision, and culture is one of factors that international business scholars have incorporated in their researches. This article deals with the influence of cultural distances on Foreign Direct Investment, specifically it aims to examine whether cultural values affects bilateral Foreign Direct Investment, that is, Foreign Direct Investment Stock. Data that include bilateral Multiple Regression Quadratic Assignment Procedure technique between 45 countries in 2007 were used, representing almost 95% of the Foreign Direct Investment Stock worldwide. The Multiple Regression Quadratic Assignment Procedure technique was used. It was found that the similarities in Power Distance between two countries positively affects the Foreign Direct Investment stock between them (it means that companies prefer countries similar from their home country) and the presence of high Uncertainty Avoidance in one or in both countries of a dyad negatively affects the Foreign Direct Investment stock between them (it means that companies avoid countries that are different from their home country). Contributions: (1) uses an innovative approach Multiple Regression Quadratic Assignment Procedure technique to analyze how individual cultural dimensions influence Foreign Direct Investment; (2) responds to the critique by Shenkar, by applying separate rather than aggregate cultural distance; (3) unveils how some cultural dimensions work in influencing FDI. |
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Cultural Influences on Foreign Direct InvestmentCultural influencesForeign Direct Investment (FDI)National culturesCultural distanceHofstedeInvestimento Direto no ExteriorThe current business competitive environment has influenced companies to cross national borders to explore foreign markets. The decision about in which country the company should invest isn’t easy. Many factors can influence this decision, and culture is one of factors that international business scholars have incorporated in their researches. This article deals with the influence of cultural distances on Foreign Direct Investment, specifically it aims to examine whether cultural values affects bilateral Foreign Direct Investment, that is, Foreign Direct Investment Stock. Data that include bilateral Multiple Regression Quadratic Assignment Procedure technique between 45 countries in 2007 were used, representing almost 95% of the Foreign Direct Investment Stock worldwide. The Multiple Regression Quadratic Assignment Procedure technique was used. It was found that the similarities in Power Distance between two countries positively affects the Foreign Direct Investment stock between them (it means that companies prefer countries similar from their home country) and the presence of high Uncertainty Avoidance in one or in both countries of a dyad negatively affects the Foreign Direct Investment stock between them (it means that companies avoid countries that are different from their home country). Contributions: (1) uses an innovative approach Multiple Regression Quadratic Assignment Procedure technique to analyze how individual cultural dimensions influence Foreign Direct Investment; (2) responds to the critique by Shenkar, by applying separate rather than aggregate cultural distance; (3) unveils how some cultural dimensions work in influencing FDI.Escola Superior de Propaganda e Marketing - ESPM2019-03-29info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionquantitativa com análise de redesapplication/pdfhttps://internext.espm.br/internext/article/view/45810.18568/internext.v14i2.458Internext - International Business and Management Review ; Vol. 14 No. 2 (2019): Maio - Agosto; 128-144Internext; v. 14 n. 2 (2019): Maio - Agosto; 128-1441980-4865reponame:Internextinstname:Escola Superior de Propaganda e Marketing (ESPM)instacron:ESPMenghttps://internext.espm.br/internext/article/view/458/pdfCopyright (c) 2019 Internextinfo:eu-repo/semantics/openAccessGoraieb, Marcelo RibeiroReinert do Nascimento, MaurícioVerdu, Fabiane Cortez2023-06-06T20:52:22Zoai:ojs.emnuvens.com.br:article/458Revistahttps://internext.espm.br/internextPRIhttps://internext.espm.br/internext/oaiinternext@espm.br1980-48651980-4865opendoar:2023-06-06T20:52:22Internext - Escola Superior de Propaganda e Marketing (ESPM)false |
dc.title.none.fl_str_mv |
Cultural Influences on Foreign Direct Investment |
title |
Cultural Influences on Foreign Direct Investment |
spellingShingle |
Cultural Influences on Foreign Direct Investment Goraieb, Marcelo Ribeiro Cultural influences Foreign Direct Investment (FDI) National cultures Cultural distance Hofstede Investimento Direto no Exterior |
title_short |
Cultural Influences on Foreign Direct Investment |
title_full |
Cultural Influences on Foreign Direct Investment |
title_fullStr |
Cultural Influences on Foreign Direct Investment |
title_full_unstemmed |
Cultural Influences on Foreign Direct Investment |
title_sort |
Cultural Influences on Foreign Direct Investment |
author |
Goraieb, Marcelo Ribeiro |
author_facet |
Goraieb, Marcelo Ribeiro Reinert do Nascimento, Maurício Verdu, Fabiane Cortez |
author_role |
author |
author2 |
Reinert do Nascimento, Maurício Verdu, Fabiane Cortez |
author2_role |
author author |
dc.contributor.author.fl_str_mv |
Goraieb, Marcelo Ribeiro Reinert do Nascimento, Maurício Verdu, Fabiane Cortez |
dc.subject.por.fl_str_mv |
Cultural influences Foreign Direct Investment (FDI) National cultures Cultural distance Hofstede Investimento Direto no Exterior |
topic |
Cultural influences Foreign Direct Investment (FDI) National cultures Cultural distance Hofstede Investimento Direto no Exterior |
description |
The current business competitive environment has influenced companies to cross national borders to explore foreign markets. The decision about in which country the company should invest isn’t easy. Many factors can influence this decision, and culture is one of factors that international business scholars have incorporated in their researches. This article deals with the influence of cultural distances on Foreign Direct Investment, specifically it aims to examine whether cultural values affects bilateral Foreign Direct Investment, that is, Foreign Direct Investment Stock. Data that include bilateral Multiple Regression Quadratic Assignment Procedure technique between 45 countries in 2007 were used, representing almost 95% of the Foreign Direct Investment Stock worldwide. The Multiple Regression Quadratic Assignment Procedure technique was used. It was found that the similarities in Power Distance between two countries positively affects the Foreign Direct Investment stock between them (it means that companies prefer countries similar from their home country) and the presence of high Uncertainty Avoidance in one or in both countries of a dyad negatively affects the Foreign Direct Investment stock between them (it means that companies avoid countries that are different from their home country). Contributions: (1) uses an innovative approach Multiple Regression Quadratic Assignment Procedure technique to analyze how individual cultural dimensions influence Foreign Direct Investment; (2) responds to the critique by Shenkar, by applying separate rather than aggregate cultural distance; (3) unveils how some cultural dimensions work in influencing FDI. |
publishDate |
2019 |
dc.date.none.fl_str_mv |
2019-03-29 |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion quantitativa com análise de redes |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
https://internext.espm.br/internext/article/view/458 10.18568/internext.v14i2.458 |
url |
https://internext.espm.br/internext/article/view/458 |
identifier_str_mv |
10.18568/internext.v14i2.458 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
https://internext.espm.br/internext/article/view/458/pdf |
dc.rights.driver.fl_str_mv |
Copyright (c) 2019 Internext info:eu-repo/semantics/openAccess |
rights_invalid_str_mv |
Copyright (c) 2019 Internext |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
Escola Superior de Propaganda e Marketing - ESPM |
publisher.none.fl_str_mv |
Escola Superior de Propaganda e Marketing - ESPM |
dc.source.none.fl_str_mv |
Internext - International Business and Management Review ; Vol. 14 No. 2 (2019): Maio - Agosto; 128-144 Internext; v. 14 n. 2 (2019): Maio - Agosto; 128-144 1980-4865 reponame:Internext instname:Escola Superior de Propaganda e Marketing (ESPM) instacron:ESPM |
instname_str |
Escola Superior de Propaganda e Marketing (ESPM) |
instacron_str |
ESPM |
institution |
ESPM |
reponame_str |
Internext |
collection |
Internext |
repository.name.fl_str_mv |
Internext - Escola Superior de Propaganda e Marketing (ESPM) |
repository.mail.fl_str_mv |
internext@espm.br |
_version_ |
1793890310057623552 |