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"Shenkar Oded"
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Beyond cultural distance: Switching to a friction lens in the study of cultural differences
My 2001 article provided a critical review of one of the most popular constructs in international business, and in the management and business literature as a whole, namely cultural distance. It listed various illusions, implicit yet unsubstantiated and refutable assumptions that underpinned a construct set to capture the essence of cultural differences. The paper questioned the validity of the measure; the resultant findings obtained in such international business applications as foreign direct investment patterns, sequence, entry mode, and performance; and, ultimately, the wisdom of continuing the use of the measure and its underlying construct. In this retrospective, I review subsequent work that tested some of the original observations, the impact the article has had, and, in particular, how we can redirect research away from the static cultural distance paradigm toward the dynamic interaction of the actual entities that come into contact in international business.
Journal Article
Cultural distance revisited: Towards a more rigorous conceptualization and measurement of cultural differences
Cultural distance is a widely used construct in international business, where it has been applied to foreign investment expansion, entry mode choice, and the performance of foreign invested affiliates, among others. The present paper presents a critical review of the cultural distance construct, outlining its hidden assumptions and challenging its theoretical and methodological properties. A comprehensive framework for the treatment of the construct is developed and concrete steps aimed at enhancing rigor are delineated.
Journal Article
العصر الصيني : القوة الاقتصادية الفائقة في القرن 21
يتناول كتاب (العصر الصيني : القوة الاقتصادية الفائقة في القرن 21) الذي قام بتأليفه أوديد شينكار في حوالي (311) صفحة، أهمية الدور الذى تلعبه الصين في الساحة الدولية إلا أن الدور الصيني يمتلك الكثير من الفرادة والزخم الذى يميزه عن دور دول كثيرة أخرى وهذه الدولة العريقة بتاريخها لم تبدأ من فراغ.
Book
Mapping world cultures: Cluster formation, sources and implications
This paper extends and builds on Ronen and Shenkar's synthesized cultural clustering of countries based on similarity and dissimilarity in work-related attitudes. The new map uses an updated dataset, and expands coverage to world areas that were non-accessible at the time. Cluster boundaries are drawn empirically rather than intuitively, and the plot obtained is triple nested, indicating three levels of similarity across given country pairs. Also delineated are cluster adjacency and cluster cohesiveness, which vary from the highly cohesive Arab and Anglo clusters to the least cohesive Confucian and Far Eastern clusters. Exploring predictors of cluster formation, we draw on the ecocultural perspective and other inputs, and examine the combined role of language, religion, and geography in generating cluster formation. We find that these forces play a prominent yet complex role: for instance, the religion and language brought by the Spanish fail to create a singular, cohesive Latin American cluster akin to the Anglo cluster. The role of economic variables is similarly considered. Finally, comparing the current map with that of 1985, we find strong support for the divergence (vs convergence) argument. Implications for international business are delineated.
Journal Article
National culture and international business: A path forward
The anniversary of Kogut and Singh’s construct of “cultural distance” is a good time to reflect on this immensely popular but flawed construct, assess the efficacy of the remedies offered for its reform and refinement, and chart an alternative approach that represents a departure from distance as the dominant paradigm with which to view and analyze the impact of national culture on cross-border business. The proposed alternative, a contact-based framework shifts attention from what sets cultures apart towards the actual cultural interface that firms and their executives experience when participating in an international transaction. With this lens, the cultural exchange is regarded as an evolving interactional process of engagement, which commences prior to a transaction and proceeds through the life of the inter-party arrangement and beyond, and whose potential to yield negative – or positive – outcome is subject to specific contingencies. Implications for theory, methodology, and practice are delineated.
Journal Article
Cultural Distance Revisited: Towards a More Rigorous Conceptualization and Measurement of Cultural Differences
Cultural distance is a widely used construct in international business, where it has been applied to foreign investment expansion, entry mode choice, and the performance of foreign invested affiliates, among others. The present paper presents a critical review of the cultural distance construct, outlining its hidden assumptions and challenging its theoretical and methodological properties. A comprehensive framework for the treatment of the construct is developed and concrete steps aimed at enhancing rigor are delineated.
Journal Article
The impact of country-dyadic military conflicts on market reaction to cross-border acquisitions
Our work examines the impact of country-dyadic military conflicts on market reaction to cross-border acquisitions (CBAs). Building on intergroup relations research, we theorize that country-dyadic military conflicts, weighted by their severity, trigger intergroup conflicts between the merging firms and, in so doing, hamper market reaction to CBA. Drawing on a sample that comprises 7321 CBAs between 1988 and 2011, we find that country-dyadic military conflicts reduce acquirer returns following CBA announcements and that cultural similarity between acquirer and target countries weakens the relationship between military conflicts and market reaction to CBA while colonial ties between the countries, the target country’s national pride, and the target’s firm size reinforce the relationship. Our study contributes to an emerging body of work that examines the role of international politics/relations in international business.
Journal Article