This research was supported by the Social Sciences and Humanities Research Council of Canada (SIG program) and Ryerson University.
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Research Article
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Geographic Distance as a Moderator of Curvilinear Relationship Between Cultural Distance and Shared Ownership
Article first published online: 13 JAN 2012
DOI: 10.1002/cjas.234
Copyright © 2012 ASAC. Published by John Wiley & Sons, Ltd.
Issue
Canadian Journal of Administrative Sciences / Revue Canadienne des Sciences de l'Administration
Volume 29, Issue 3, pages 218–230, September 2012
Additional Information
How to Cite
Malhotra, S. (2012), Geographic Distance as a Moderator of Curvilinear Relationship Between Cultural Distance and Shared Ownership. CAN J ADM SCI, 29: 218–230. doi: 10.1002/cjas.234
Publication History
- Issue published online: 18 SEP 2012
- Article first published online: 13 JAN 2012
- Abstract
- Article
- References
- Cited By
Keywords:
- cultural distance;
- geographic distance;
- shared ownership;
- foreign direct investment;
- mergers and acquisitions
- distance culturelle;
- distance géographique;
- copropriété;
- investissements directs étrangers;
- fusions et acquisitions
Abstract
This study tests geographic distance as a moderator of the curvilinear relationship between cultural distance and a firm's preference for shared ownership entry mode. The sample consisted of US foreign direct investments in 60 countries spread over 18 years. Results showed that an inverted U-shaped relationship between cultural distance and preference for shared ownership is stronger for firms separated by high geographic distance. While full equity ownership is most likely when both cultural and geographic distances are either low or high, shared ownership is most likely when the cultural distance is high (low) but the geographic distance is low (high). Copyright © 2012 ASAC. Published by John Wiley & Sons, Ltd.
Résumé
La présente étude examine, à partir d'un échantillon d'investissements directs américains dans soixante pays étrangers étalés sur plus de dix-huit ans, la probabilité d'un impact modérateur de la distance géographique sur la relation curvilinéaire entre la distance culturelle et la préférence de la firme pour le mode d'entrée en copropriété. Les résultats indiquent que la relation en U inversée entre la distance culturelle et la préférence pour la copropriété est renforcée pour les firmes séparées par une grande distance géographique. Tandis que la participation totale est plus probable lorsque les distances culturelles et géographique sont soit grandes, soit faibles, la copropriété est plus probable lorsque la distance culturelle est grande (faible) et la distance géographique faible (grande). Copyright © 2012 ASAC. Published by John Wiley & Sons, Ltd.