Strategic decision-making processes in internationalization: does national culture of the focal firm matter?

Dimitratos, P. , Petrou, A., Plakoyiannaki, E. and Johnson, J.E. (2011) Strategic decision-making processes in internationalization: does national culture of the focal firm matter? Journal of World Business, 46(2), pp. 194-204. (doi:10.1016/j.jwb.2010.05.002)

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Abstract

We seek to examine how national culture values affect strategic decision-making processes (SDMPs) of internationalized firms. We employ the cultural relativity theory to explain how firms from different countries make international decisions. We advance hypotheses regarding the associations between three SDMP dimensions and three national culture aspects, notably the relationships between hierarchical decentralization and power distance; lateral communication and individualism; and, formalization and uncertainty avoidance. We present evidence from a large-scale study conducted on 528 internationalized small and medium-sized firms based in the USA, UK, Greece and Cyprus. The findings support our hypotheses with the exception of that concerning lateral communication and individualism. The national culture of the focal firm matters as far as SDMPs in internationalization are concerned. Implications and further research directions are discussed.

Item Type:Articles
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:Dimitratos, Professor Pavlos and Johnson, Dr Jeffrey
Authors: Dimitratos, P., Petrou, A., Plakoyiannaki, E., and Johnson, J.E.
College/School:College of Social Sciences > Adam Smith Business School > Management
Journal Name:Journal of World Business
Publisher:Pergamon
ISSN:1090-9516
ISSN (Online):1878-5573
Published Online:17 June 2010

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