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Journal of International Business Studies

, Volume 29, Issue 1, pp 137–158 | Cite as

National Cultural Distance and Cross-Border Acquisition Performance

  • Piero Morosini
  • Scott Shane
  • Harbir Singh
Article

Abstract

Previous theoretical research has argued that national cultural distance hinders cross-border acquisition performance by increasing the costs of integration. This article tests the alternative hypothesis that national cultural distance enhances cross-border acquisition performance by providing access to the target's and/or the acquirer's diverse set of routines and repertoires embedded in national culture. Using a multi-dimensional measure of national cultural distance and controlling for other effects, we examine a sample of 52 cross-border acquisitions that took place between 1987 and 1992, and find a positive association between national cultural distance and cross-border acquisition performance.

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Copyright information

© Academy of International Business 1998

Authors and Affiliations

  • Piero Morosini
    • 1
  • Scott Shane
    • 2
  • Harbir Singh
    • 1
  1. 1.The Wharton School of the University of Pennsylvania
  2. 2.Sloan School of Management, Massachusetts Institute of Technology

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