Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
1002396 | Journal of World Business | 2015 | 12 Pages |
Abstract
Institutional theory suggests that firms imitate their peers when deciding to enter a foreign market in order to gain legitimacy and cope with uncertainty. There is little investigation, however, on how home country culture affects a firm's mimetic behavior as a response to institutional influences. To understand culture's role, this paper examines the effect of the cultural environment on mimetic foreign joint venture entries into China. Based on a sample of 1361 international joint venture entries in the 1985–2003 period, we find that the cultural dimensions individualism–collectivism and power distance significantly affect the responsiveness of firms to mimetic forces.
Related Topics
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Authors
Chengguang Li, K. Praveen Parboteeah,