The effect of regulative and normative distances on MNE ownership and expatriate strategies

摘要: Abstract * Researchers have used cultural distance to explain strategic and operational control mechanisms of the multinational enterprise, yet construct has failed yield consistent results. This study proposed two new measures country differences, regulative normative distances, from an institutional perspective, examined their effect on MNE ownership expatriate strategies. Key Results Larger distances were associated with a lower level equity smaller presence expatriates for over 2000 Japanese overseas sub-units. Introduction The degree foreign subsidiary is important subject in enterprise (MNE) research. Two kinds been discussed extensively literature: commonly (Gatignon/Anderson 1988, Hennart Pan 1996), through use home (Beamish/Inkpen 1998, Boyacigiller 1990). Among many factors that may impact these mechanisms, researchers paid particular attention differences between countries. Early works this stream (e.g., Davidson 1980) based general impressions about national cultures. Beginning Hofstede (1980), however, concept culture became empirically derived, better defined, accepted (Hofstede 1983). Building Hofstede's four dimensions--individualism/collectivism, power distance, uncertainty avoidance, masculinity/femininity--Kogut/ Singh (1988) compiled composite index widely applied various studies cross-cultural management (e.g. Barkema/Bell/Pennings 1996, Brouthers/Brouthers 2000, 2001, Hennart/Larimo Li/Lam/Qian Manev/Stevenson 2001). It can be readily incorporated by main theoretical perspectives direct investment, such as internationalization school (Johanson/Vahlne 1977, 1990), transaction cost--internalization theory (Beamish/Banks 1987, Gatignon/Anderson 1988), learning perspective (Barkema/Bell/Pennings Barkema/Vermeulen 1998). In recent review, Shenkar (2001) pointed out involved some methodological illusions, had produce results studies. On issue entry mode, example, "has linked wholly owned modes, joint venture, or nothing" (Brouthers/Brouthers possible reliance proxy over-simplified complex environment, caused overlook other societal institutions. meantime, organizational theorists (DiMaggio/Powell 1983, Scott 1995) focused countries, more specifically, extent dissimilarity regulative, normative, cognitive institutions countries (Kostova explaining behavior. suggested greater cause difficulty establishing legitimacy host (Kostova/Zaheer 1999) transferring practices parent firm 1999). three components differences--regulative, distances--are said separate constructs are issue- domain-specific (Busenitz/Gomez/Spencer Kostova 1997, Kostova/Zaheer words, they effects MNE, depending being studied. More recently, Xu/Shenkar (2002) respective implications strategy. Specifically, larger might subsidiary. …