The Impact of Psychic Distance on the Internationalisation of the Australian Firm

Abstract

This paper explores the relationship between management characteristics and psychic distance, psychic distance and internationalisation and management characteristics and internationalisation. It is argued that internationalisation takes different forms and that psychic distance will impact differently on each form whether it is outward, inward or linked. It is shown that whereas some management characteristics impact on internationalisation directly, others have impact through psychic distance acting as an intervening variable. The management implications for the above are discussed, as is its effect on planning future international activities.     

Unbundling the differences between Psychic and Cultural Distance: An empirical examination of the existing measures

The diversity between the country-scores of Hofstede, Schwartz, GLOBE, Håkanson and Ambos and Dow and Karunaratna is the main focus of this study. To investigate the correlation between the country-scores of these CD (Cultural Distance), pPD (perceived Psychic Distance) and PDs (Psychic Distance stimuli) instruments we apply the Mantel test, a test predominantly used in anthropology and genetics, which can be particularly insightful when examining “distance” data. The matrix correlation findings provide evidence supporting the high diversity between these measures and their lack of consistent results for the same countries. Therefore, despite the similarity between the way of conceptualizing and operationalizing CD that Hofstede, Schwartz and GLOBE share, these CD measures do not report consistent findings. Consistently, the lack of correlation, between the PDs measure of Dow & Karunaratna and pPD of Håkanson & Ambos, indicates the diversity between PD stimuli measures and perceived PD measures. At the same time, while the two Psychic Distance (PD) measures indicate high correlation in some cases, overall they are highly diverse from the CD measures. We argue, therefore, that identical studies could reach significantly different conclusions by simply using different measures of CD,pPD&PDs which then denotes significant implications for the reliability of research findings. Additionally, we point out potential weaknesses of these measures when examining culturally proximate countries and multicultural nations.     

Cultural Values and International Differences in Business Ethics

We analyze ethical policies of firms in industrialized countries and try to find out whether culture is a factor that plays a significant role in explaining country differences. We look into the firm’s human rights policy, its governance of bribery and corruption, and the comprehensiveness, implementation and communication of its codes of ethics. We use a dataset on ethical policies of almost 2,700 firms in 24 countries. We find that there are significant differences among ethical policies of firms headquartered in different countries. When we associate these ethical policies with Hofstede’s cultural indicators, we find that individualism and uncertainty avoidance are positively associated with a firm’s ethical policies, whereas masculinity and power distance are negatively related to these policies. Bert Scholtens received his Ph.D. at the Universtiy of Amsterdam. Since 1999 he has been working at the Department of Finance of the University of Groningen, the Netherlands. His research particularly looks into the interaction between financial institutions and corporate social responsibility. He has published in, among others, Ecological Economics, Journal of Banking and Finance, Finance Letters, Journal of Investing, Sustainable Development, and Journal of Business Ethics. Lammertjan Dam is a Ph.D. student at the Universtiy of Groningen. He expects to defend his thesis about the integration of corporate social responsibility in economic valuation in Summer 2007.     

心理距离对跨国公司进入模式的影响

基于65 670家外商直接投资企业数据,本文使用群组Logit模型,分析了心理距离对跨国公司进入中国市场模式选择的影响。研究发现语言差异和工业发展水平差异与跨国公司采取独资模式进入的机会比率呈显著负相关关系,宗教差异与跨国公司采取独资模式进入的机会比率呈显著正相关关系,而教育水平差异和民主差异对跨国公司进入模式选择的影响并不显著。     

期货经纪公司内控制度设计要点分析

期货企业作为金融体系中最重要的组成部分,同时也是引发金融危机的最脆弱的部分。近期一系列期货丑闻事件都与其内部控制形同虚设有重大关系。防止内部控制形同虚设,重要的是从源头开始,力求其设计的严密性与适应性。     

文化差异对国际商务活动的影响

在国际商务活动中,文化对于商务活动的各个方面都有着直接的影响。因为世界各国在文化方面差异很大。如时间观、权力和决策、法律的意见、关系网等,所以在商务活动中只有了解了对方的文化,才能使国际商务活动顺利地进行。     

文化产业的商业属性及商业模式

文化产业作为一种新兴的经济结构形态具有一般产业所具备的商业属性,其核心要素包括生产者、生产过程和产品,就其所提供产品的性质而言,文化产业可以被理解为向消费者提供精神产品或服务的行业。在经济全球化的今天,商业模式作为文化产业创造价值的核心逻辑,其重要作用已经得到社会各界的高度重视。     

The Influence of Regionalization and Cultural Distance on the Direction of Exports

Research has identified two distinct influences on the direction of firm internationalisation, cultural distance, and regionalisation. This paper sets out to test the strength of these influences on the direction of exports in circumstances where they act in different directions. The paper applies a quantitative methodology to a large, purposively compiled data set of Australian export values over the period 1990 to 2004. The Australian context provides an interesting case because its cultural linkages and its geographic connections lie in different directions. It is shown that regionalisation is the dominant influence on the direction of exports in the Australian context.     

The Effect of Cultural Distance on International Marketing Strategy: A Comparison of Cultural Distance and Managerial Perception Measures

ABSTRACT

The purpose of this article is to examine whether service convenience increases customer satisfaction that fosters customer loyalty in Indian commercial banks. A cross-sectional study of 352 retail banking customers through questionnaires was conducted. The population of the study is retail urban customers of banks in Rajasthan. Responses are analyzed using structural equation modeling. Dimensions of service convenience are decision convenience, access convenience, transaction convenience, benefit convenience, and postbenefit convenience. Decision convenience was found to influence customer satisfaction more than the other dimensions of service convenience. Customer satisfaction furthers customer loyalty. The article emphasizes the significance of SERVCON on customer satisfaction for the Indian banking sector. The direct impact of SERVCON on customer loyalty is also studied.     

A Study of the Relationship Between Personal Values and Moral Reasoning of Undergraduate Business Students

This study examines values and value types as well as scores in levels of moral reasoning for␣students enrolled in a business program. These two factors are measured using the Schwartz Personal Values␣Questionnaire and the Defining Issues Test 2. No statistically significant differences in levels of moral␣reasoning, rankings of values, and value types could be attributed to gender. However, eight significant correlations between value types and levels of moral reasoning provide evidence that a systematic relationship exists. The relationships are not only internally consistent but also consistent with the model of values based on motivational goals (Schwartz S. H. and K. Boenke: 2004, Journal of Research in Personality, 38 230–255). Dr. George Lan, (Ph.D. Management, Queen’s University, Canada) is an Associate Professor of Accounting and a member of the Certified General Accountants of Ontario. His research interest and publications are in the area of business ethics and governance, accounting education and earnings management. Dr. Maureen P. Gowing (Ph.D. Management, Queen’s University, Canada) is an Assistant Professor of Accounting. She is a co-author of both a financial and managerial accounting text and has published articles on ethics and cost control, efficacy of health systems management, and gender differences in oral communication. Dr. Sharon McMahon (Ed.D. Wayne State University, Detroit, Michigan in Curriculum Development and Counseling is an Associate Professor, Faculty of Nursing. Research interests include health and wellness of children and families, health behavior outcomes, and learner’s satisfaction. Author and co-author of publications related to nonprofit governance she integrates her lived experience as a board member on several nonprofit boards and professional organizations. Dr. Fritz Rieger (Ph.D. in Management, McGill University, Canada) is an Associate Professor of Business Policy and Strategy. His research interests and publications are in the areas of ethics, organizational behavior, systems theory, modeling, culture, and immigrant entrepreneurship. Dr. Norman King (Ph.D. in Religious Studies, University of St. Michael’s College, Canada) is a Full Professor (retired) in the department of Languages, Literatures and Cultures. He has authored and co-authored many publications in contemporary spirituality and Western religious thought and remains an active board member of the Children’s Aid Society.     

文化差异对国际商务谈判的影响及对策研究

在全球经济一体化的总框架内,国家间的贸易活动更加频繁,商业关系日益复杂,国际商务谈判成为跨国贸易交往中不可或缺的重要环节。如何能更好地融合不同文化背景的人进行国际商务谈判,解决文化差异将是谈判的一个关键部分。本文首先对关于文化差异对国际商务谈判影响的相关文献进行简单搜集和整理,然后从文化差异产生的原因及类型、文化差异如何影响商务谈判以及相应的应对策略这三个方面进行分析和阐述。     

The impact of family involvement on the investments of Italian small-medium enterprises in psychically distant countries

In this paper we investigate a sample of 122 Italian manufacturing small to medium-sized family firms, and analyse the effects of the degree of family involvement on their decisions to invest in psychically distant countries. Our findings indicate that higher family involvement tends to correspond to a lower number of foreign direct investments in psychically distant countries. Additionally, the firm’s age has a moderating effect on the relationship between family involvement and investments in psychically distant countries. When we analyse younger firms, family involvement turns out to be negatively associated with these investments, while this relationship is slightly positive when we consider older firms. These results allow us to move beyond family/non family owned comparative studies and provide a more nuanced view of family firm internationalization.     

The Effects of Cultural Distance,Free Trade Agreements,and Protectionism on Perceived Export Barriers

ABSTRACT

This article addresses the questions as to whether cultural distance and a free trade agreement with a trade bloc, as well as protectionism, have an impact on perceived external export barriers. The evaluation of a mail survey of chief executive officers from 459 Norwegian companies shows that protectionism has a strong significant effect on the level of perceived external export barriers. The cultural distance to the export markets has only a small effect, while the free trade agreement with the European Union has no effect.     

The Psychic Distance Postulate Revised: From Market Selection to Speed of Market Penetration

In this paper we revise the psychic distance postulate of the Uppsala Model (Johanson and Vahlne, 1977, 1990) by injecting more recent findings (i.e., distinguishing between selection of foreign markets and time needed to achieve sufficient penetration in foreign markets and the role of social capital). The model we propose posits that a higher psychic distance decreases the speed of market penetration. On distant markets, internationalizing technology-based ventures need more time to establish a position in the foreign network and to obtaining positive cash flow. Our model presents social capital as a mean to overcome the psychic distance and to increase the speed of market penetration. We build our model on four case studies on technology-based new ventures internationalizing at very early ages.     

The Relationship Between Consumer Ethnocentrism and Human Values

Abstract

The study explores the relationship between human values and consumer ethnocentrism. Schwartz's (1992) framework of human values is used as the basis of the study. Hypotheses linking values and consumer ethnocentrism are developed and tested in samples of consumers drawn from Turkey and the Czech Republic respectively. Findings indicated that the values relationship to consumer ethno-centrism varies across the two countries surveyed. The study also confirmed that “conservation” types of values are positively related to consumer ethnocentrism. However, some of the hypotheses put forward are not empirically supported but they provide new avenues for future re-search.     

Teaching International Business Concepts Through the Exchange of Cultural Metaphors

Abstract

The objectives of this paper are (1) to review the concept of cultural metaphors, (2) to propose a specific application of cultural metaphors in the teaching of international business concepts and (3) to report two situations in which this application was used. The paper concludes with recommendations for further development of this teaching methodology. The applications involved the exchange of metaphors between students at a French university and students at a university in the United States, in 2001 and 2004, which they had developed to describe their respective cultures. The courses were in the field of international business management.     

The Hypothesized Relationship Between Accountability and Ethical Behavior

Unethical behavior is important to study because it may have an adverse influence on organizational performance. This paper is an attempt to better understand why individuals behave as they do when faced with ethical dilemmas. We first explore the definition, theories and models of ethical behaviors and accountability. This discussion of societal ethics and accountability as forms of social control segues into a discussion of how accountability may influence ethical behaviors. Based on the business ethics and accountability literatures, we suggest a number of research questions and hypotheses that need to be tested, as well as an appropriate research strategy.     

The Process of Business Relationship Ending – Its Stages and Actors

How to describe a process of business relationship ending, while considering both the aspects of time and the multiplicity of actors involved? The process of ending consists of actions performed by the actors, as well as their perceptions and decisions concerning the future of the relationship and the consequences they have on the relationship. A longitudinal, dyadic case study is used to empirically ground a process framework. The model distinguishes six stages in the ending process and depicts different actor levels involved. The process model helps to understand the events and actions that end the relationship.     

中国女性购买行为的价值观动因实证研究

本文从研究中国女性消费者购买行为的角度,利用结构方程方法,比较中西文化价值观对中国女性购买行为的影响和诠释能力,探索影响中国女性消费者购买行为的价值观动因.实证研究结果显示,较之于西方文化价值观,以儒道佛为代表的传统文化价值观能够更有效地诠释中国消费者购买行为.     

Managerial Values and Practices Sharing Common Cultural Heritage: A Comparison of Cultural Values in Hong Kong,Taiwan and the People's Republic of China

ABSTRACT

This paper explores managerial values and practices in three rapidly growing economies in Asia: Hong Kong, Taiwan, and the People's Republic of China. Differences and similarities in six cultural dimensions were investigated. Although participants in the present study share a common cultural heritage, their cultural values may be very different. Implications for cross-cultural research and practical applications are explored.