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How a firm's domestic footprint and domestic environmental uncertainties jointly shape added cultural distances : the roles of resource dependence and headquarters attention
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Hendriks, Guus, Slangen, Arjen H. L. and Heugens, Pursey P. M. A. R. (2018) How a firm's domestic footprint and domestic environmental uncertainties jointly shape added cultural distances : the roles of resource dependence and headquarters attention. Journal of Management Studies, 55 (6). pp. 883-909. doi:10.1111/joms.12314 ISSN 0022-2380.
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Official URL: http://dx.doi.org/10.1111/joms.12314
Abstract
Even though many firms conduct most of their business domestically, international management research has remained remarkably silent on the role of a firm's domestic footprint in its internationalization strategy. We shed light on that role by exploring how the size of a firm's domestic footprint influences the cultural distance that the firm adds to its country portfolio when expanding internationally. Integrating resource dependence theory and the attention‐based view, we hypothesize that a firm's domestic footprint has a negative relationship with added cultural distance (ACD), and that domestic policy uncertainty strengthens this relationship whereas domestic demand uncertainty weakens it. We find robust support for our hypotheses in a sample of the world's largest retailers covering the period 2000–07, indicating that a firm's domestic footprint and domestic environmental uncertainties jointly shape cross‐cultural expansion strategies. Our findings suggest that ACDs reflect headquarters executives' desire to avoid ineffective foreign expansions, hinting at possible biases in studies of the performance effects of distance.
| Item Type: | Journal Article | ||||||||
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| Subjects: | H Social Sciences > HD Industries. Land use. Labor | ||||||||
| Divisions: | Faculty of Social Sciences > Warwick Business School | ||||||||
| Library of Congress Subject Headings (LCSH): | Business enterprises, International business enterprises, Globalization | ||||||||
| Journal or Publication Title: | Journal of Management Studies | ||||||||
| Publisher: | Wiley-Blackwell Publishing Ltd. | ||||||||
| ISSN: | 0022-2380 | ||||||||
| Official Date: | September 2018 | ||||||||
| Dates: |
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| Volume: | 55 | ||||||||
| Number: | 6 | ||||||||
| Page Range: | pp. 883-909 | ||||||||
| DOI: | 10.1111/joms.12314 | ||||||||
| Status: | Peer Reviewed | ||||||||
| Publication Status: | Published | ||||||||
| Reuse Statement (publisher, data, author rights): | "This is the peer reviewed version of the following article: Hendriks, G. , Slangen, A. H. and Heugens, P. P. (2018), How a Firm's Domestic Footprint and Domestic Environmental Uncertainties Jointly Shape Added Cultural Distances: The Roles of Resource Dependence and Headquarters Attention. Jour. of Manage. Stud., 55: 883-909. doi:10.1111/joms.12314 which has been published in final form at doi:10.1111/joms.12314. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions." | ||||||||
| Access rights to Published version: | Restricted or Subscription Access | ||||||||
| Date of first compliant deposit: | 1 November 2018 | ||||||||
| Date of first compliant Open Access: | 1 November 2018 |
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