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Is cultural similarity misleading? The experience of Australian manufacturers in Britain

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  • Fenwick, Marilyn
  • Edwards, Ron
  • Buckley, Peter J.

Abstract

Internationalising firms often begin the process by entering similar markets to their own. This strategy has been given as the explanation for the focus by Australian businesses on Britain as the location for much of their foreign direct investment. This paper extends research into Australian investment in Britain published in an earlier edition of this journal by examining problems related to unanticipated differences between Australian and British management styles. It examines the impact on interpersonal relations when the perceived cultural distance between two countries is small and actual distance much greater. Implications for international management are also considered.

Suggested Citation

  • Fenwick, Marilyn & Edwards, Ron & Buckley, Peter J., 2003. "Is cultural similarity misleading? The experience of Australian manufacturers in Britain," International Business Review, Elsevier, vol. 12(3), pages 297-309, June.
    • Handle: RePEc:eee:iburev:v:12:y:2003:i:3:p:297-309
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    References listed on IDEAS

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    Cited by:

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    2. Barmeyer, Christoph & Mayrhofer, Ulrike, 2008. "The contribution of intercultural management to the success of international mergers and acquisitions: An analysis of the EADS group," International Business Review, Elsevier, vol. 17(1), pages 28-38, February.
    3. Freeman, Susan & Lindsay, Sarah, 2012. "The effect of ethnic diversity on expatriate managers in their host country," International Business Review, Elsevier, vol. 21(2), pages 253-268.
    4. Kotler, Philip & Manrai, Lalita A. & Lascu, Dana-Nicoleta & Manrai, Ajay K., 2019. "Influence of country and company characteristics on international business decisions: A review, conceptual model, and propositions," International Business Review, Elsevier, vol. 28(3), pages 482-498.
    5. Fang, Tony & Fridh, Camilla & Schultzberg, Sara, 2004. "Why did the Telia-Telenor merger fail?," International Business Review, Elsevier, vol. 13(5), pages 573-594, October.
    6. Yamin, Mohammad & Sinkovics, Rudolf R., 2006. "Online internationalisation, psychic distance reduction and the virtuality trap," International Business Review, Elsevier, vol. 15(4), pages 339-360, August.
    7. Andrew Godley & Haiming Hang, 2008. "Revisiting the psychic distance paradox: international retailing in China in the long run (1840-2005," Economics Discussion Papers em-dp2008-66, Department of Economics, University of Reading.
    8. Eriksson, Kent & Jonsson, Sara & Lindbergh, Jessica & Lindstrand, Angelika, 2014. "Modeling firm specific internationalization risk: An application to banks’ risk assessment in lending to firms that do international business," International Business Review, Elsevier, vol. 23(6), pages 1074-1085.
    9. Yamin, Mo & Golesorkhi, Sougand, 2010. "Cultural distance and the pattern of equity ownership structure in international joint ventures," International Business Review, Elsevier, vol. 19(5), pages 457-467, October.
    10. Håkanson, Lars & Ambos, Björn, 2010. "The antecedents of psychic distance," Journal of International Management, Elsevier, vol. 16(3), pages 195-210, September.
    11. Chapman, Malcolm & Gajewska-De Mattos, Hanna & Clegg, Jeremy & Jennings Buckley, Peter, 2008. "Close neighbours and distant friends--perceptions of cultural distance," International Business Review, Elsevier, vol. 17(3), pages 217-234, June.
    12. Youngok Kim & Sidney J Gray, 2017. "Internationalization strategy and the home-regionalization hypothesis: The case of Australian multinational enterprises," Australian Journal of Management, Australian School of Business, vol. 42(4), pages 673-691, November.
    13. Isaac M Dinner & Tarun Kushwaha & Jan-Benedict E M Steenkamp, 2019. "Psychic distance and performance of MNCs during marketing crises," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(3), pages 339-364, April.

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