Journal of International Business Studies

, Volume 28, Issue 2, pp 309–335

Cultural Diversity and the Performance of Multinational Firms

Authors

  • Luis R. Gómez-mejia
    • Arizona State University
  • Leslie E. Palich
    • Baylor University
Article

DOI: 10.1057/palgrave.jibs.8490103

Cite this article as:
Gómez-mejia, L. & Palich, L. J Int Bus Stud (1997) 28: 309. doi:10.1057/palgrave.jibs.8490103

Abstract

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.

Copyright information

© Academy of International Business 1997