Cultural Diversity and the Performance of Multinational Firms
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- Gómez-mejia, L. & Palich, L. J Int Bus Stud (1997) 28: 309. doi:10.1057/palgrave.jibs.8490103
We test the hypothesis that culturally related international diversification will have a positive impact on firm performance and that the opposite will be true for culturally unrelated globalization. Cultural diversity for Fortune 500 firms was used to predict performance over a ten-year period (1985–1994), controlling for several organizational and industry characteristics. Regression tests using nine indicators of cultural diversity revealed no significant cultural effects. Alternate interpretations are offered.