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Managerial perceptions of the cultural distance basis for internationalization decisions by firms

implications for 'low-tech' industries

Azar, Goudarz (2013). Managerial perceptions of the cultural distance basis for internationalization decisions by firms. Diss. (sammanfattning/summary) Uppsala : Sveriges lantbruksuniv., Acta Universitatis Agriculturae Sueciae, 1652-6880 ; 2013:13
ISBN 978-91-576-7770-9
[Doctoral thesis]

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The role of managerial perceptions of cultural distance in the internationalization decisions of 'LOW-TECH' firms is explored in this thesis. A first empirical study examined managers' perceptions of dissimilarity in food culture in foreign markets (food culture distance), as an antecedent to adaptation of an export marketing strategy for food companies. A second empirical study examined the explanatory power of food culture distance in relation to choice of foreign markets by food exporters. The relationship between managers' perceptions of cultural and other business differences (psychic distance), organizational innovation, and the performance of 'LOW-TECH' firms was examined in a third study, while a fourth examined the congruence between mangers' perceptions of cultural distance and objective reality. Finally, the strategic role of inpatriates as sources of knowledge of cultural preferences in foreign markets was analyzed. The quantitative data used were obtained in two separate surveys that employed questionnaires as the data collection technique. The hypotheses were examined using three multivariate analysis techniques: structural equation modeling (SEM), regression analysis with a clustered robust standard errors approach, and bivariate correlation analysis. It was found that food culture distance influences an internationalizing firm's marketing strategies and choice of foreign market. Psychic distance was found to affect a firm's innovation strategies during the internationalization process. Perception of substantial differences in foreign markets may lead firms to adapt their marketing programs while conducting innovative strategies. The results indicated that perceived cultural distance not only entails challenges and difficulties for firms, but also provides business opportunities that make distant markets an attractive target for internationalizing firms. Managers' perceptions of cultural distance were found to be highly congruent with objective reality. Moreover, inpatriates proved to be important as sources of knowledge about, inter alia, cultural preferences in situations with a great cultural distance between the home country and the host country.

Authors/Creators:Azar, Goudarz
Title:Managerial perceptions of the cultural distance basis for internationalization decisions by firms
Subtitle:implications for 'low-tech' industries
Series Name/Journal:Acta Universitatis Agriculturae Sueciae
Year of publishing :2013
Number of Pages:68
I.Azar, G. (2011). Food Culture Distance: An Antecedent to Export Marketing Strategy Adaptation - An Empirical Examination of Swedish and Finnish Food Processing Companies. International Food and Agribusiness Management Review 14(3), 17-44.
II.Azar, G. Food Culture Distance as a Predictor of Foreign Market Selection: The Case of Swedish Food Exporters. Accepted for publication in Journal of Food Products Marketing.
III.Azar, G. & Drogendijk, R. Psychic Distance, Organizational Innovation, and Firm Performance (To be submitted to Journal of Product Innovation Management).
IV.Azar, G. How Congruent Are Managers’ Perceptions of Cultural Distance with Objective Reality (To be submitted to Cross Cultural Management-An International Journal).
V.Azar, G. (2012). Inpatriates and Expatriates: Sources of Strategic Human Capital for Multinational Food and Beverage Firms. International Food and Agribusiness Management Review 15A (Special issue), 73-79.
Place of Publication:Uppsala
Publisher:Dept. of Economics, Swedish University of Agricultural Sciences
ISBN for printed version:978-91-576-7770-9
Publication Type:Doctoral thesis
Full Text Status:Public
Agris subject categories.:E Economics, development, and rural sociology > E20 Organization, administration and management of agricultural enterprises or farms
E Economics, development, and rural sociology > E70 Trade, marketing and distribution
Subjects:(A) Swedish standard research categories 2011 > 5 Social Sciences > 502 Economics and Business > Business Administration
Agrovoc terms:enterprises, food industry, decision making, cultural factors, exports, marketing, international relations, innovation
Keywords:Psychic Distance, Cultural Distance, Internationalization, Export, Innovation, Perception, ‘LOW-TECH’ sector, Food, Firm Performance, Inpatriates
Permanent URL:
ID Code:9452
Department:(NL, NJ) > Dept. of Economics
Deposited By: Goudarz Azar
Deposited On:18 Feb 2013 06:22
Metadata Last Modified:13 Dec 2014 19:17

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