Journal of International Business Studies

, Volume 28, Issue 2, pp 309–335

Cultural Diversity and the Performance of Multinational Firms

  • Luis R. Gómez-mejia
  • Leslie E. Palich
Article

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.

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Copyright information

© Academy of International Business 1997

Authors and Affiliations

  • Luis R. Gómez-mejia
    • 1
  • Leslie E. Palich
    • 2
  1. 1.Arizona State University
  2. 2.Baylor University

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