The effect of culture on the responsiveness of firms to mimetic forces: Imitative foreign joint venture entries into China, 1985-2003

Journal of World Business

Volumn 50, Issue 3, 2015, Pages 465-476

  Li, Chengguang ^a   Parboteeah, K Praveen ^b  

^a UNIVERSITY OF PADERBORN   (Germany)

^b UNIVERSITY OF WISCONSIN WHITEWATER   (United States)

Author keywords

China; Culture; Foreign market entry; Imitation; Institutional theory; International joint ventures

Indexed keywords

EID: 84930046973     PISSN: 10909516     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jwb.2014.08.002     Document Type: Article

References (89)

1. ®: A practical guide 2010, SAS Institute Inc., Cary, NC. 2nd ed.
2. Allred B.B., Swan K.S. Global versus multidomestic: Culture's consequences on innovation. Management International Review 2004, 44:81-105.
3. Ang S.H., Michailova S. Institutional explanations of cross-border alliance modes: The case of emerging economies firms. Management International Review 2008, 48:551-576.
4. Beamish P. The characteristics of joint ventures in the People's Republic of China. Journal of International Marketing 1993, 1:29-48.
5. Berry H., Guillén M., Zhou N. An institutional approach to cross-national distance. Journal of International Business Studies 2010, 41:1460-1480.
6. Bond R., Smith P. Culture and conformity: A meta-analysis of studies using Asch's (1952b, 1956) line judgment task. Psychological Bulletin 1996, 119:111-137.
7. Brouthers K.D., Brouthers L.E. Why service and manufacturing entry mode choices differ: The influence of transaction cost factors, risk and trust. Journal of Management Studies 2003, 40:1179-1204.
8. Chan C.M., Makino S., Isobe T. Interdependent behavior in foreign direct investment: The multi-level effects of prior entry and prior exit on foreign market entry. Journal of International Business Studies 2006, 37:642-665.
9. Chen C.C., Chen X.-P., Meindl J.R. How can cooperation be fostered? The cultural effects of individualism-collectivism. Academy of Management Review 1998, 23:285-304.
10. Child J., Yan Y. Investment and control in international joint ventures: The case of China. Journal of World Business 1999, 34:3-15.
11. Combs J.G. Big samples and small effects: Let's not trade relevance for and rigor for power. Academy of Management Journal 2010, 53:9-13.
12. Cyert R.M., March J.G. A behavioral theory of the firm 1963, Prentice-Hall, Englewood Cliffs, NJ.
13. Davidson A.D., Jaccard J.J., Triandis H.C., Morales M.L., Diaz-Guerrero R. Cross-cultural model testing: Toward a solution of the etic-emic dilemma. International Journal of Psychology 1976, 11:1-13.
14. Davies E. A roadmap for China's mergers and acquisitions. China Business Review 2003, 30:12-17.
15. Delios A., Gaur A.S., Makino S. The timing of international expansion: Information, rivalry and imitation among Japanese firms, 1980-2002. Journal of Management Studies 2008, 45:169-195.
16. Demirbag M., Glaister K.W., Tatoglu E. Institutional and transaction cost influences on MNEs' ownership strategies of their affiliates: Evidence from an emerging market. Journal of World Business 2007, 42:418-434.
17. Deng P. Why do Chinese firms tend to acquire strategic assets in international expansion?. Journal of World Business 2009, 44:74-84.
18. DiMaggio P.J., Powell W.W. The iron cage revisited: Institutional isomorphism and collective rationality in organizational fields. American Sociological Review 1983, 48:147-160.
19. Dorfman P., Javidan M., Hanges P., Dastmalchian A. GLOBE: A twenty year journey into the intriguing world of culture and leadership. Journal of World Business 2012, 47:504-518.
20. Dunning J.H., Lundan S.M. Multinational enterprises and the global economy 2008, Edward Elgar Publishing, Cheltenham, UK. 2nd ed.
21. Elango B. Minimizing effects of 'liability of foreignness': Response strategies of foreign firms in the United States. Journal of World Business 2009, 44:51-62.
22. Erumban A.A., de Jong S.B. Cross-country differences in ICT adoption: A consequence of culture?. Journal of World Business 2006, 41:302-314.
23. Gelfand M., Bhawuk D., Nishii L., Bechtold D. Individualism and collectivism. Culture, leadership, and organizations: The GLOBE study of 62 societies 2004, 602-653. SAGE Publ., Thousand Oaks, CA. R.J. House, P. Hanges, M. Javidan, P. Dorfman, V. Gupta (Eds.).
24. Gimeno J., Hoskisson R.E., Real B.D., Wan W.P. Explaining the clustering of international expansion moves: A critical test in the U.S. telecommunications industry. Academy of Management Journal 2005, 48:297-319.
25. Guillén M.F. Structural inertia, imitation, and foreign expansion: South Korean firms and business groups in China, 1987-95. Academy of Management Journal 2002, 45:509-525.
26. Hannan M.T., Carroll G.R., Dundon E.A., Torres J.C. Organizational evolution in a multinational context: Entries of automobile manufacturers in Belgium, Britain, France, Germany, and Italy. American Sociological Review 1995, 60:509-528.
27. Haunschild P.R., Miner A.S. Modes of interorganizational imitation: The effects of outcome salience and uncertainty. Administrative Science Quarterly 1997, 42:472-500.
28. Henisz W.J., Delios A. Uncertainty, imitation, and plant location: Japanese multinational corporations, 1990-1996. Administrative Science Quarterly 2001, 46:443-475.
29. Hofstede G. Culture's consequences: International differences in work-related values 1980, SAGE, Newbury Park, CA.
30. Hofstede G. Culture's consequences: Comparing values, behaviors, institutions and organizations across nations 2001, SAGE, Thousand Oaks, CA.
31. Hofstede G., Van Deusen C.A., Mueller C.B., Charles T.A., The Business Goals Network What goals do business leaders pursue? A study in fifteen countries. Journal of International Business Studies 2002, 33:785-803.
32. Holtz-Eakin D., Joulfaian D., Rosen H.S. Sticking it out: Entrepreneurial survival and liquidity constraints. Journal of Political Economy 1994, 102:53-75.
33. House R.J., Hanges P.J., Javidan M., Dorfman P.W., Gupta V. Culture, leadership and organizations: The GLOBE study of 62 societies 2004, SAGE, Thousand Oaks, CA.
34. Hymer S.H. The international operations of national firms: A study of direct foreign investment 1976, MIT Press, Cambridge, MA.
35. Johanson J., Vahlne J.-E. The internationalization process of the firm: A model of knowledge development and increasing foreign market commitments. Journal of International Business Studies 1977, 8:23-32.
36. Kang Y., Jiang F. FDI location choice of Chinese multinationals in East and Southeast Asia: Traditional economic factors and institutional perspective. Journal of World Business 2012, 47:45-53.
37. Kedia B.L., Bhagat R.S. Cultural constraints on transfer of technology across nations: Implications for research in international and comparative management. Academy of Management Review 1988, 13:559-571.
38. Kennedy P. A guide to econometrics 2008, Blackwell, Oxford. 6th ed.
39. Kim U., Triandis H.C., Kagitcibasi C., Choi S.-C., Yoon G. Individualism and collectivism: Theory, method and applications 1994, SAGE, London.
40. Kirkman B.L., Lowe K.B., Gibson C.B. 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.
41. Knickerbocker F. Oligopolistic reaction and multinational enterprise 1973, Harvard University, Graduate School of Business Administration, Boston.
42. Kogut B., Singh H. The effect of national culture on the choice of entry mode. Journal of International Business Studies 1988, 19:411-432.
43. Kostova T. Country institutional profile: Concept and measurement. Academy of management best paper proceedings 1997, 180-184.
44. Lamin A., Zaheer S. Wall street vs. main street: Firm strategies for defending legitimacy and their impact on different stakeholders. Organization Science 2012, 23:47-66.
45. Lee S.M., Peterson S.J. Culture, entrepreneurial orientation, and global competitiveness. Journal of World Business 2000, 35:401-416.
46. Li J. Foreign entry and survival: Effects of strategic choices on performance in international markets. Strategic Management Journal 1995, 16:333-351.
47. Li J., Yang Y.J., Yue D.R. Identity, community, and audience: How wholly owned foreign subsidiaries gain legitimacy in China. Academy of Management Journal 2007, 50:175-190.
48. Li J., Yao F.K. The role of reference groups in international investment decisions by firms from emerging economies. Journal of International Management 2010, 16:143-153.
49. Lieberman M.B., Asaba S. Why do firms imitate each other?. Academy of Management Review 2006, 31:366-385.
50. Liesch P.W., Welch L.S., Buckley P.J. Risk and uncertainty in internationalisation and international entrepreneurship studies. Management International Review 2011, 51:851-873.
51. Lin D.Y., Wei L.J. The robust inference for the Cox proportional hazards model. Journal of the American Statistical Association 1989, 84:1074-1078.
52. Loi R., Lam L.W., Chang K.W. Coping with job insecurity: The role of procedural justice, ethical leadership and power distance orientation. Journal of Business Ethics 2012, 108:36-372.
53. Lu J.W. Intra- and inter-organizational imitative behavior: Institutional influences on Japanese firms' entry mode choice. Journal of International Business Studies 2002, 33:19-37.
54. Luthans F., Zhu W., Avolio B.J. The impact of efficacy on work attitudes across cultures. Journal of World Business 2006, 41:121-132.
55. Luo Y. Partner selection and venturing success: The case of joint ventures with firms in the People's Republic of China. Organization Science 1997, 8:648-662.
56. Luo Y. Timing of investment and international expansion performance in China. Journal of International Business Studies 1998, 29:391-407.
57. Luo Y. From foreign investors to strategic insiders: Shifting parameters, prescriptions and paradigms for MNCs in China. Journal of World Business 2007, 42:14-34.
58. March J.G. Decisions in organizations and theory of choice. Perspectives on organization design and behavior 1981, 205-244. Wiley, New York. A. Van de Ven, W.F. Joyce (Eds.).
59. McKendrick D.G. Global strategy and population-level learning: The case of hard disk drives. Strategic Management Journal 2001, 22:307-334.
60. Metcalf L.E., Bird A., Shankarmahesh M., Aycan Z., Larimo J., Valdelamar D.D. Cultural tendencies in negotiation: A comparison of Finland, India, Mexico, Turkey, and the United States. Journal of World Business 2006, 41:382-394.
61. Meyer J.W., Rowan B. Institutionalized organizations: Formal structure as myth and ceremony. American Journal of Sociology 1977, 83:340-363.
62. Okhmatovskiy I., David R.J. Setting your own standards: Internal corporate governance codes as a response to institutional pressure. Organization Science 2012, 23:155-176.
63. Oliver C. Strategic responses to institutional processes. Academy of Management Review 1991, 16:145-179.
64. Parboteeah K.P., Cullen J.B. Social institutions and work centrality: Explorations beyond national culture. Organization Science 2003, 14:137-148.
65. Parboteeah K.P., Cullen J.B., Lim L. Formal volunteering: A cross-national test. Journal of World Business 2004, 39:431-441.
66. Pearson M.M. Joint ventures in the People's Republic of China 1991, Princeton University Press, Princeton, NJ.
67. Peng M.W. Making M&A fly in China. Harvard Business Review 2006, 84:26-27.
68. Peterson R.M., Dibrell C.C., Pett T.L. Long- vs. short-term performance perspectives of Western, European, Japanese, and U.S. countries: Where do they lie?. Journal of World Business 2002, 37:245-255.
69. Porter M.E. Competitive advantage 1985, Free Press, New York.
70. Porter M.E. Competition in global industries 1986, Harvard Business School Press, Boston.
71. Redding G. The thick description and comparison of societal systems of capitalism. Journal of International Business Studies 2005, 36:123-155.
72. Ronen S., Shenkar O. Clustering countries on attitudinal dimensions: A review and synthesis. Academy of Management Review 1985, 10:435-454.
73. Schilling M.A. Understanding the alliance data. Strategic Management Journal 2009, 30:233-260.
74. Schwartz S.H. Cultural value orientations: Nature and implications of national differences 2008, State University - Higher School of Economics Press, Moscow.
75. Scott W.R. Institutions and organizations: Ideas and interests 2008, SAGE, Los Angeles, CA. 3rd ed.
76. Scott W.R., Ruef M., Mendel P., Caronna C.A. Institutional change and healthcare organizations: From professional dominance to managed care 2000, University of Chicago Press, Chicago.
77. Shane S. Why do some societies invent more than others?. Journal of Business Venturing 1992, 7:29-46.
78. Shenkar O. Cultural distance revisited: Towards a more rigorous conceptualization and measurement of cultural differences. Journal of International Business Studies 2001, 32:519-535.
79. Shi Y. Technological capabilities and international production strategy of firms: The case of foreign direct investment in China. Journal of World Business 2001, 36:184-204.
80. Stein E., Daude C. Longitude matters: Time zones and the location of foreign direct investment. Journal of International Economics 2007, 71:96-112.
81. Suchman M.S. Managing legitimacy: Strategic and institutional approaches. Academy of Management Review 1995, 20:571-610.
82. Sully de Luque M., Javidan M. Uncertainty avoidance. Culture, leadership, and organizations: The GLOBE study of 62 societies 2004, 603-644. SAGE Publ., Thousand Oaks, CA. R.J. House, P. Hanges, M. Javidan, P. Dorfman, V. Gupta (Eds.).
83. Taras V., Steel P., Kirkman B.L. Improving national cultural indices using a longitudinal meta-analysis of Hofstede's dimensions. Journal of World Business 2012, 47:326-341.
84. Triandis H.C. Individualism and collectivism 1995, SAGE, Thousand Oaks, CA.
85. Xia J., Tan J., Tan D. Mimetic entry and bandwagon effect: The rise and decline of international equity joint venture in China. Strategic Management Journal 2008, 29:195-217.
86. Yang M., Hyland M. Similarity in cross-border mergers and acquisitions: Imitation, uncertainty and experience among Chinese firms, 1985-2006. Journal of International Management 2012, 18:352-365.
87. Yiu D., Makino S. The choice between joint venture and wholly owned subsidiary: An institutional perspective. Organization Science 2002, 13:667-683.
88. Yu C.-M., Ito K. Oligopolistic reaction and foreign direct investment: The case of the U.S. tire and textiles industries. Journal of International Business Studies 1988, 19:449-460.
89. Zucker L.G. The role of institutionalization in cultural persistence. American Sociological Review 1977, 42:726-743.