The impact of institutional distance on the international diversity–performance relationship |
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| Authors: | Mike Chen-Ho Chao Vikas Kumar |
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| Institution: | 1. Pablo de Olavide University, Department of Management and Marketing, School of Business, Carretera de Utrera, Km. 1, 41013 Seville, Spain;2. Department of Economics, Quantitative Methods, and Economic History, Pablo de Olavide University, Spain;3. Department of International and Spanish Economics, University of Granada, Spain;1. Gupta College of Business, University of Dallas, Irving, TX 75062, United States;2. King''s Business School, King''s College London, Bush House, 30 Aldwych, London WC2B 4BG, UK;3. Vienna University of Economics and Business, Austria;4. Department of Management, Box 19467, College of Business, University of Texas at Arlington, Arlington, TX 76019-0467, United States;1. Poznań University of Economics and Business, al. Niepodleg?o?ci 10, 61-875 Poznań, Poland;2. Jacobs University Bremen, Department of Business and Economics, Campusring 1, 28759 Bremen, Germany;3. University College Dublin, Michael Smurfit Graduate Business School, Carysfort Avenue, Blackrock, co., Dublin, Ireland;1. College of Economics and Management & China-Africa International Business School, Zhejiang Normal University, Yingbin Road 688, Jinhua, Zhejiang 321004, China;2. School of Innovation and Entrepreneurship, Shandong University, 72 Binhai Road, Jimo District, Qingdao, Shandong Province 266237, China;3. Research Center for the Belt & Road Financial and Economic Development, Xiamen National Accounting Institute, Island-Coast Express, Xiamen, Fujian 361005, China |
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| Abstract: | We investigated the impact of institutional distance on the international diversity–performance relationship. We first discussed the international diversity–performance relationship for large multinational firms and later showed the moderation effect of regulative and normative institutional distance. Based on a sample of Fortune 500 firms, we found an inverted U-shaped curve. Regulative institutional distance has a negative moderating effect on the international diversity–performance relationship, while normative institutional distance shows a positive effect. |
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