search query: @freeterm expansion / total: 8
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| Author: | Hutzschenreuter, T. Voll, J.C. Verbeke, A. |
| Title: | The impact of added cultural distance and cultural diversity on international expansion patterns: a Penrosean perspective |
| Journal: | Journal of Management Studies
2011 : MAR, VOL. 48:2, p. 305-329 |
| Index terms: | multinational companies strategy companies Germany international |
| Freeterms: | expansion multiculturalism |
| Language: | eng |
| Abstract: | A set of multinational enterprise (MNE) expansion patterns have been found by international (herein as: int-al.) strategy research. Some MNEs seem to do int-al. expansion at a stable rate, while others expand rapidly, experiencing slower growth. The latter pattern suggests the occurrence of the Penrose effect. Two determinants of these diverging patterns are identified. It is proposed 1. that high levels of added cultural distance during one period may affect negatively further int-al. expansion due to dynamic adjustment costs, and 2. that managing a network of subsidiaries operating within local contexts with high cultural diversity increases environmental and internal governance complexity etc. The hypothesised relationships are tested based on a 91 German company panel. |
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