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

Journal of World Business

Volumn 46, Issue 2, 2011, Pages 194-204

  Dimitratos, Pavlos ^a   Petrou, Andreas ^b   Plakoyiannaki, Emmanuella ^c   Johnson, Jeffrey E ^d  

^a ATHENS UNIVERSITY OF ECONOMICS AND BUSINESS   (Greece)

^b Cyprus International Institute of Management   (Cyprus)

^c ARISTOTLE UNIVERSITY OF THESSALONIKI   (Greece)

^d ST MARY'S UNIVERSITY   (United States)

Author keywords

Internationalization; National culture; Strategic decision making process

Indexed keywords

EID: 79951954745     PISSN: 10909516     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jwb.2010.05.002     Document Type: Article

References (138)

1. Abramson N.R., Keating R.J., Lane H.W. Cross-national cognitive process differences: A comparison of Canadian and Japanese managers. Management International Review 1996, 36(2):123-148.
2. Aharoni Y. The foreign investment decision process 1966, Harvard Business School, Boston.
3. Aiken M., Hage J. Organizational alienation. American Sociological Review 1966, 31:497-509.
4. Aiken M., Hage J. Organizational interdependence and intra-organizational structure. American Sociological Review 1968, 33:912-930.
5. Ali A. Decision-making style, individualism, and attitudes toward risk of Arab executives. International Studies of Management and Organization 1993, 23:53-73.
6. Allinson C.W., Hayes J. The cognitive style index: A measure of intuition-analysis for organisational research. Journal of Management Studies 1996, 33:119-135.
7. Bartlett C.A., Ghoshal S. Managing across borders: The transnational solution 1989, Harvard Business School, Boston.
8. Bell G.G., Bromiley P., Bryson J. Spinning a complex web: Links between strategic decision making context, content, process and outcome. Strategic decisions 1998, 63-178. Kluwer, Dordrecht. V. Papadakis, P. Barwise (Eds.).
9. Boeker W. Strategic change: The influence of managerial characteristics and organizational growth. Academy of Management Journal 1997, 40:152-170.
10. Bonaccorsi A. On the relationship between firm size and export intensity. Journal of International Business Studies 1992, 23:605-635.
11. Bourantas D., Anagnostelis J., Mantes Y. Culture gap in Greek management. Organization Studies 1990, 11:261-283.
12. Bourgeois L.J., Eisenhardt K.M. Strategic decision processes in high velocity environments: Four cases in the microcomputer industry. Management Science 1988, 34:816-835.
13. Bstieler L., Hemmert M. Developing trust in vertical product development partnerships: A comparison of South Korea and Austria. Journal of World Business 2008, 43:35-46.
14. Buckley P.J. The role of management in internalisation theory. Management International Review 1993, 33(3):197-207.
15. Burke M.J., Chan-Serafin S., Salvador R., Smith A., Sarpy S.A. The role of national culture and organizational climate in safety training procedures. European Journal of Work and Organizational Psychology 2008, 17:133-152.
16. Burton F.N., Schlegelmilch B.B. Profile analyses of non-exporters versus exporters grouped by export involvement. Management International Review 1987, 27(1):38-49.
17. Calof J.L. The impact of size on internationalization. Journal of Small Business Management 1993, 31(4):60-69.
18. Carpenter M.A. The implications of strategy and social context for the relationship between top management team heterogeneity and firm performance. Strategic Management Journal 2002, 23:275-284.
19. Carr C. Strategic investment decisions and short-terminism: Germany versus Britain. Strategic Decisions 1998, 107-126. Kluwer, Dordrecht. V. Papadakis, P. Barwise (Eds.).
20. Chandy P., Williams T. The impact of journals and authors on international business research. Journal of International Business Studies 1994, 25:715-728.
21. Colakoglu S., Caligiuri P. Cultural distance, expatriate staffing and subsidiary performance: The case of US subsidiaries of multinational corporations. International Journal of Human Resource Management 2008, 19:223-239.
22. Collinson S., Houlden J. Decision-making and market orientation in the internationalization process of small and medium-sized enterprises. Management International Review 2005, 45:413-426.
23. Coviello N., Martin K. Internationalization of service SMEs: An integrated perspective from the engineering consulting sector. Journal of International Marketing 1999, 7(4):42-66.
24. Covin J.G., Slevin D.P. Strategic management of small firms in hostile and benign environments. Strategic Management Journal 1989, 10:75-87.
25. Covin J.G., Green K.M., Slevin D.P. Strategic process effects on the entrepreneurial orientation-sales growth rate relationship. Entrepreneurship Theory and Practice 2006, 31:57-81.
26. Cray D., Mallory G.R., Butler R.J., Hickson D.J., Wilson D.C. Sporadic, fluid and constricted processes: Three types of strategic decision making in organizations. Journal of Management Studies 1988, 25:13-39.
27. Cunha M.P.E Entrepreneurship as decision-making: Rational, intuitive and improvisational approaches. Journal of Enterprising Culture 2007, 15:1-20.
28. Cyert R.M., March J.G. A behavioral theory of the firm 1963, Prentice-Hall, Englewood Cliffs, NJ.
29. Daft R.L., Weick K.E. Toward a model of organizations as interpretation systems. Academy of Management Review 1984, 9:284-295.
30. Dean J.W., Sharfman M.P. Procedural rationality in the strategic decision-making process. Journal of Management Studies 1993, 30:587-610.
31. Dean J.W., Sharfman M.P. Does decision process matter? A study of strategic decision-making effectiveness. The Academy of Management Journal 1996, 39:368-396.
32. Dewar R.D., Whetten D.A., Boje D. An examination of the reliability and validity of the Aigen and Hage Scales of centralization, formalization and task routines. Administrative Science Quarterly 1980, 25:120-128.
33. Dichtl E., Leibold M., Köglmayr H.-G., Müller S. The export decision of small- and medium-sized firms: A review. Management International Review 1984, 24(2):49-60.
34. Dimitratos P., Lioukas S. Greek perspectives of international entrepreneurship. Research on international entrepreneurship 2004, 455-480. Edward Elgar, Cheltenham, UK. L.-P. Dana (Ed.).
35. Dimitratos, P., Lioukas, S., Ibeh, K., & Wheeler, C. 2010 Governance Mechanisms of Small and Medium Enterprise International Partner Management. British Journal of Management, 21(3), doi:10.1111/j.1467-8551.2008.00620.x.
36. Earley P.C. Playing follow the leader: Status-determining traits in relation to collective efficacy across cultures. Organizational Behavior and Human Decision 1999, 80(3):192-212.
37. Eisenhardt K.M., Bourgeois L.J. Politics of strategic decision making in high-velocity environments: Toward a midrange theory. Academy of Management Journal 1988, 31:737-770.
38. Elbanna S. Planning and participation as determinants of strategic planning effectiveness: Evidence from the Arabic context. Management Decision 2008, 46:779-796.
39. Elbanna S., Child J. Influences on strategic decision effectiveness: Development and test of an integrative model. Strategic Management Journal 2007, 28:431-453.
40. Fagenson-Eland E., Ensher E., Burke W.W. Organizational development and change interventions: A seven nation comparison. Journal of Applied Behavioral Science 2004, 40:432-464.
41. Fang T. A critique of Hofstede's fifth national culture dimension. International Journal of Cross Cultural Management 2003, 3(3):347-368.
42. Forbes D.P. The effects of strategic decision-making on entrepreneurial self efficacy. Entrepreneurship Theory and Practice 2005, 29:599-626.
43. Fredrickson J.W., Mitchell T.R. Strategic decision processes: Comprehensiveness and performance in an industry with an unstable environment. Academy of Management Journal 1984, 27:399-423.
44. Freeman E.B. Effectiveness of strategic planning: A multidimensional view. Academy of Management Journal 1989, 27:399-423.
45. Garrett T.C., Buisson D.H., Yap C.M. National culture and R&D and marketing integration mechanisms in new product development: A cross-cultural study between Singapore and New Zealand. Industrial Marketing Management 2006, 35:293-307.
46. Goll I., Rasheed A.M.A. Rational decision-making and firm performance: The moderating role of environment. Strategic Management Journal 1997, 18:583-591.
47. Griffith D.A., Zhang C., Cavusgil S.T. Attributions of non-cooperative incidents and response strategies: The role of national character. Journal of World Business 2006, 41:356-367.
48. Grinyer P.H., Al-Bazzaz S., Yasai-Ardekani M. Towards a contingency theory of corporate planning: Findings in 48 UK companies. Strategic Management Journal 1986, 7:3-28.
49. Haleblian J., Rajagopalan N. A cognitive model of CEO dismissal: Understanding the influence of board perceptions, attributes and efficacy beliefs. Journal of Management Studies 2006, 43:1009-1026.
50. Hambrick D.C., Mason P.A. Upper echelons: The organization as a reflection of its top managers. Academy of Management Review 1984, 9:106-193.
51. Hayton J.C., George G., Zahra S.A. National culture and entrepreneurship: A review of behavioural research. Entrepreneurship Theory and Practice 2002, 26(4):33-52.
52. Hennart J.-F., Larimo J. The impact of national culture on the strategy of multinational enterprises. Journal of International Business Studies 1998, 29:515-538.
53. Herrmann P., Datta D.K. CEO successor characteristics and the choice of foreign market entry mode: An empirical study. Journal of International Business Studies 2002, 33:551-569.
54. Hitt M., Tyler B. Strategic decision models: Integrating different perspectives. Strategic Management Journal 1991, 12:327-351.
55. Hofstede G. Culture's consequences: International differences in work related values 1980, Sage, Beverly Hills, CA.
56. Hofstede G. The cultural relativity of organizational practices and theories. Journal of International Business Studies 1983, 14(2):75-89.
57. Hofstede G. Cultures and organizations. Software of mind 1994, Harper Collins Business, Glasgow, UK.
58. Hofstede G. Culture's consequences: Comparing values, behaviors. Institutions and organizations across nations 2001, Sage, Thousand Oaks, CA.
59. Hofstede, G. (2009). Retrieved August 4, 2009 from http://www.geert-hofstede.com/.
60. Hofstede G., Bond M.H. The Confucius connection: From cultural roots to economic growth. Organizational Dynamics 1988, 16:5-21.
61. Hood J.N., Logsdon J.M. Business ethics in the NAFTA countries: A cross-cultural comparison. Journal of Business Research 2002, 55:883-890.
62. Jaw Y.-L., Lin W.-T. Corporate elite characteristics and firm's internationalization: CEO level and TMT-level roles. International Journal of Human Resource Management 2009, 20:220-233.
63. Joiner T.A. The influence of national culture and organizational culture alignment on job stress and performance: Evidence from Greece. Journal of Managerial Psychology 2001, 16(3):229-242.
64. Katsikeas C.S., Deng S.L., Wortzel L.H. Perceived export success factors of small and medium-sized Canadian firms. Journal of International Marketing 1997, 5(4):53-72.
65. Khandwalla P.N. The design of organizations 1977, Harcourt Bruce Jovanovich, New York.
66. King, P. F. (1975). An investigation of the process of large scale capital investment decision making in diversified hierarchical organizations. Unpublished doctoral dissertation, Cambridge University.
67. Kirkman B.L., Lowe K.B., Gibson C. A quarter century of culture's consequences: A review of empirical research incorporating Hofstede's cultural values framework. Journal of International Business Studies 2006, 37:285-320.
68. Kluckhohn C. Values and value-orientation in the theory of action: An exploration in definition and classification. Toward a general theory of action 1951, 388-433. Harvard University Press, Cambridge, MA. T. Parsons, E.A. Shils (Eds.).
69. Kogut B., Singh H. The effect of national culture on the choice of entry mode. Journal of International Business Studies 1988, 19:411-432.
70. Lawless M.W., Finch L.K. Choice and determinism: A test of Hrebiniak and Joyce's framework on strategy-environment fit. Strategic Management Journal 1989, 10:351-365.
71. Lee H., Park J. Top team diversity, internationalization and the mediating effect of international alliances. British Journal of Management 2006, 17(3):195-213.
72. Leonidou L.C., Katsikeas C.S., Samiee S. Marketing strategy determinants of export performance: A meta-analysis. Journal of Business Research 2002, 55:51-67.
73. Lindsay W.M., Rue L.W. Impact of the organization environment on the long-range planning process. Academy of Management Journal 1980, 23:385-404.
74. Lines R. Influence of participation in strategic change: Resistance, organizational commitment and change goal achievement. Journal of Change Management 2004, 4(3):193-215.
75. Loane S., Bell J.D., McNaughton R. A cross-cultural study of the impact of management teams on the rapid internationalisation of small firms. Journal of World Business 2008, 43:489-504.
76. Lu Y. Strategic investment decisions in China. Strategic decisions 1998, 163-178. Kluwer, Dordrecht. V. Papadakis, P. Barwise (Eds.).
77. Madsen T.K., Servais P. The internationalization of born globals: An evolutionary process?. International Business Review 1997, 6:561-583.
78. Makridakis S., Caloghirou Y., Papagiannakis L., Trivellas P. The dualism of Greek firms and management: Present state and future implications. European Management Journal 1997, 15:381-402.
79. Manolova T.S., Manev I.M. Internationalization and the performance of the small firm: A review of the empirical literature between 1996 and 2001. Emerging paradigms in international entrepreneurship 2004, 37-63. Edward Elgar, Cheltenham, UK. M.V. Jones, P. Dimitratos (Eds.).
80. March J.G., Shapira Z. Behavioral decision theory and organization decision theory. Decision Making: An interdisciplinary perspective 1982, 92-127. Kent Publishing, Boston. G. Ungston, D. Braunstein (Eds.).
81. March J.G., Simon H.A. Organizations 1958, Wiley, New York.
82. McDougall P.P., Oviatt B.M. New venture internationalization, strategic change, and performance: A follow-up study. Journal of Business Venturing 1996, 11:23-40.
83. McDougall P.P., Oviatt B.M., Shrader R.C. A comparison of international and domestic new ventures. Journal of International Entrepreneurship 2003, 1:59-82.
84. Miller D. Strategy making and structure: Analysis and implications for performance. Academy of Management Journal 1987, 30:7-32.
85. Miller C.C. Decisional comprehensiveness and firm performance: Towards a more complete understanding. Journal of Behavioral Decision-Making 2008, 21:598-620.
86. Miller D., Dröge C. Psychological and traditional determinants of structure. Administrative Science Quarterly 1986, 31:539-560.
87. Miller D., Friesen P.H. Organizations: A quantum view 1984, Prentice-Hall, Englewood Cliffs, NJ.
88. Miller D., Toulouse J.M. Strategy, structure, CEO personality and performance in small firms. American Journal of Small Business 1986, 10(3):47-62.
89. Miller D., De Vries M.F.R.K., Toulouse J.-M. Top executive locus of control and its relationship to strategy-making, structure and environment. Academy of Management Journal 1982, 25:237-253.
90. Mintzberg H., Westley F. Decision-making: It's not what you think. Sloan Management Review 2001, 42(3):89-93.
91. Mintzberg H., Raisinghani D., Théorêt A. The structure of 'unstructured' decision processes. Administrative Science Quarterly 1976, 21:246-275.
92. Mitchell R.K., Smith B., Seawright K.W., Morse E.A. Cross-cultural cognitions and the venture creation decision. Academy of Management Journal 2000, 43:974-993.
93. Morris M., Davis D.L., Allen J.W. Fostering corporate entrepreneurship: Cross-cultural comparisons of the importance of individualism versus collectivism. Journal of International Business Studies 1994, 25:65-89.
94. Morris T., Pavett C.M. Management styles and productivity in two cultures. Journal of International Business Studies 1992, 23:169-179.
95. Netter J., Wasserman W., Kutner M. Applied linear statistical models 1996, Irwin, Homewood, IL. 4th ed.
96. Newburry W., Yakova N. Standardization preferences: A function of national culture, work interdependence and local embeddedness. Journal of International Business Studies 2006, 37:44-60.
97. Newman K.L., Nollen S.D. Culture and congruence: The fit between management practices and national culture. Journal of International Business Studies 1996, 27:753-779.
98. Nutt P. Why decisions fail: Avoiding the blunders and traps that lead to debacles 2002, Barrett-Koehler, San Francisco.
99. Nutt P. Investigating the success of decision-making processes. Journal of Management Studies 2008, 45:425-455.
100. O'Farrell P.N., Wood P.A., Zheng J. Regional influences on foreign market development by business service companies: Elements of a strategic context explanation. Regional Studies 1998, 32:31-48.
101. OECD (Organisation for Economic Development and Cooperation) Removing barriers to SME access to international markets 2008, OECD, Paris.
102. Oviatt B.M., McDougall P.P. Global start-ups: Entrepreneurs on a worldwide stage. Academy of Management Executive 1995, 9(2):30-43.
103. Papadakis V. Strategic investment decisions processes and organizational performance: An empirical examination. British Journal of Management 1998, 9:115-132.
104. Papadakis V.M., Barwise P. Research on strategic decisions: Where do we go from here?. Strategic decisions 1998, 289-302. Kluwer, Dordrecht. V. Papadakis, P. Barwise (Eds.).
105. Papadakis V.M., Barwise P. How much do CEOs and top managers matter in strategic decision-making?. British Journal of Management 2002, 13:83-95.
106. Papadakis V.M., Lioukas S., Chambers D. Strategic decision-making processes: The role of management and context. Strategic Management Journal 1998, 19:115-147.
107. Papadakis, V., Thanos, I., & Barwise, P. 2010. Research on strategic decisions: Taking stock and looking ahead. In P. C. Nutt, & D. C. Wilson (Eds.), Handbook of decision making (pp. 31-70): Wiley & Sons Ltd.
108. Pfeffer J., Salancik G.R., Leblebici H. The effect of uncertainty on the use of social influence in organizational decision making. Administrative Science Quarterly 1976, 21:227-245.
109. Podsakoff P.M., MacKenzie S.B., Lee J.-Y., Podsakoff N.P. Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology 2003, 88:879-903.
110. Porter M.E. The competitive advantage of nations 1990, The Free Press, New York.
111. Rajagopalan N., Rasheed A.M.A., Datta D.K. Strategic decision processes: Critical review and future directions. Journal of Management 1993, 19:349-384.
112. Rokeach M. Beliefs, attitudes, and values: A theory of organization and change 1972, Jossey-Bass, San Francisco.
113. Ronen S., Shenkar O. Clustering countries on attitudinal dimensions: A review and synthesis. Academy of Management Review 1985, 10:435-454.
114. Rowley C., Bae J. Globalization and transformation of human resource management in South Korea. International Journal of Human Resource Management 2002, 13:522-549.
115. Sharfman M.P., Dean J.W. Conceptualizing and measuring the organizational environment: A multidimensional approach. Journal of Management 1991, 17:681-700.
116. Shenkar O. Cultural distance revisited: Towards a more rigorous conceptualization and measurement of cultural differences. Journal of International Business Studies 2001, 32:519-535.
117. Simon H.A. Administrative behavior 1976, Free Press, New York. 4th ed.
118. Simon H.A. Models of bounded rationality 1982, MIT Press, Cambridge, MA.
119. Simons T., Pelled L.H., Smith K.A. Making use of differences: Diversity, debate and decision comprehensiveness in top management teams. Academy of Management Journal 1999, 42:662-673.
120. Singh J. Performance, slack, and risk-taking in organizational decision making. Academy of Management Journal 1986, 29:562-585.
121. Slater S., Paliwoda S., Slater J. Ethnicity and decision making for internationalisation. Management Decision 2007, 45:1622-1635.
122. Smith K.G., Gannon M.J., Grimm C., Mitchell T.R. Decision-making behaviour in smaller entrepreneurial and larger professionally managed firms. Journal of Business Venturing 1988, 3:223-232.
123. Steensman H.K., Marino L., Weaver K.M. Attitudes towards cooperative strategies: A cross-cultural analysis of entrepreneurs. Journal of International Business Studies 2000, 31:591-609.
124. Stein, J. (1980). Contextual influence on strategic decision methods. Unpublished doctoral dissertation, University of Pennsylvania.
125. Sternberg R.J. Thinking styles 1997, Cambridge University Press, Cambridge.
126. Strandskov J., Pedersen K. The foreign expansion of a service company: The case of ISS A/S. Business History 2008, 50:40-61.
127. Strohschneider S., Güss D. The fate of the Moros: A cross-cultural exploration of strategies in complex and dynamic decision making. International Journal of Psychology 1999, 34:235-252.
128. Sullivan D. Measuring the degree of internationalization of a firm. Journal of International Business Studies 1994, 25:325-342.
129. Tannenbaum A.S. Control in organizations 1968, McGraw Hill, New York.
130. Taylor M. Cultural challenge as a challenge to global public relations: A case study of the Coca Cola scare in Europe. Public Relations Review 2000, 26:277-293.
131. Tihanyi L., Ellstrand A.E., Daily C.M., Dalton D.R. Composition of the top management team and firm international diversification. Journal of Management 2000, 26:1157-1177.
132. Tihanyi L., Griffith D.A., Russell C.J. The effect of cultural distance on entry mode choice, international diversification, and MNE performance: A meta-analysis. Journal of International Business Studies 2005, 36:270-283.
133. Tse D., Lee K., Vertinsky I., Wehrun D. Does culture matter? A cross-cultural study of executives' choice, decisiveness, and risk adjustment in international marketing. Journal of Marketing 1988, 52(10):81-95.
134. Tsui A.S., Nifadkar S.S., Ou A.Y. Cross-national, cross-cultural organizational behavior research: Advances, gaps, and recommendations. Journal of Management 2007, 33:426-478.
135. Tyebjee T.T. Internationalization of high tech firms: Initial vs. extended involvement. Journal of Global Marketing 1994, 7(4):59-81.
136. Voudouris I., Lioukas S., Makridakis S., Spanos Y. Greek hidden champions: Lessons from small, little-known firms in Greece. European Management Journal 2000, 18:663-674.
137. West G.P. Collective cognition: When entrepreneurial teams, not individuals, make decisions. Entrepreneurship Theory and Practice 2007, 32:77-102.
138. Wheeler C., Ibeh K., Dimitratos P. UK export performance research: Review and implications. International Small Business Journal 2008, 26:207-239.