Asia Pacific Journal of Management

, Volume 26, Issue 1, pp 55–74 | Cite as

An assessment of alternative empirical measures of cultural distance: Evidence from the Republic of Korea

Article

Abstract

This study assesses the relative merits of alternative cultural frameworks as the basis to construct indices of cultural distance using the one introduced by Kogut and Singh (1988). We assess not only Hofstede (1980, 1991) but also the more recent Schwartz (1994, 2003) and GLOBE (2004) frameworks. Using primary data collected through a questionnaire survey of 228 foreign manufacturing firms in the Republic of Korea, we find consistently across the three different frameworks that cultural distance has a positive association with full ownership. These results support not only the robustness of Kogut and Singh’s method to construct an index of cultural distance but also the consistency of the alternative indices of cultural distance used to explain ownership mode decisions by MNEs.

Keywords

National culture distance Cultural frameworks FDI ownership modes Republic of Korea 

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Copyright information

© Springer Science+Business Media, LLC 2007

Authors and Affiliations

  1. 1.School of Organisation and ManagementThe University of New South WalesSydneyAustralia
  2. 2.Faculty of Economics and Business, Discipline of International BusinessThe University of SydneyDarlingtonAustralia

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