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Toward a perspective of cultural friction in international business

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  • Luo, Yadong
  • Shenkar, Oded

Abstract

This article introduces a new lens that addresses cultural interaction in global business. Shifting away from viewing culture in terms of its differences, the cultural friction lens captures the nature and magnitude of interaction between the cultural systems engaged in cross-border businesses. In this study we present that (1) cultural distance may not transform into a clash, or yield any meaningful interaction effect, negative or positive, until organizations truly engage in interactions; (2) cultural friction is situation-specific, subject to the influence of "drag" parameters, such as entry mode (e.g., contract vs. equity; greenfield vs. acquisition), workflow interdependence, breath of local stakeholders, speed and stage of international expansion, and depth of localization; and (3) cultural friction can be curtailed through a series of managerial mechanisms, or lubricants, around the points of cross-border contact. We also develop a measure of cultural friction and assess the implications for extant theories as well as for future theory development in international business.

Suggested Citation

  • Luo, Yadong & Shenkar, Oded, 2011. "Toward a perspective of cultural friction in international business," Journal of International Management, Elsevier, vol. 17(1), pages 1-14, March.
    • Handle: RePEc:eee:intman:v:17:y:2011:i:1:p:1-14
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    8. Popli, Manish & Akbar, Mohammad & Kumar, Vikas & Gaur, Ajai, 2016. "Reconceptualizing cultural distance: The role of cultural experience reserve in cross-border acquisitions," Journal of World Business, Elsevier, vol. 51(3), pages 404-412.
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    14. Lai, Jung-Ho & Chen, Li-Yu & Chang, Shao-Chi, 2012. "The board mechanism and entry mode choice," Journal of International Management, Elsevier, vol. 18(4), pages 379-392.
    15. Cui, Lin & He, Xiaoming, 2017. "Expanding near the home base or venture far? The influence of home country state on the economic distance of foreign direct investments," Journal of Business Research, Elsevier, vol. 75(C), pages 95-107.
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    20. Muellner, Jakob & Klopf, Patricia & Nell, Phillip C., 2017. "Trojan Horses or Local Allies: Host-country National Managers in Developing Market Subsidiaries," Journal of International Management, Elsevier, vol. 23(3), pages 306-325.
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    22. Černe, Matej & Jaklič, Marko & Škerlavaj, Miha, 2013. "Decoupling management and technological innovations: Resolving the individualism–collectivism controversy," Journal of International Management, Elsevier, vol. 19(2), pages 103-117.
    23. Jiang, Fuming & Travaglione, Tony & Liu, Li Xian & Li, Jizhong, 2021. "When does the global mindset affect headquarters–subsidiary relationships?," Journal of Business Research, Elsevier, vol. 136(C), pages 523-542.
    24. Foroudi, Pantea & Gupta, Suraksha & Patel, Parth & Batsakis, Georgios & Vaatanen, Juha & Czinkota, Michael, 2023. "The effect of home country characteristics on the internationalization of EMNEs: The moderating role of knowledge stock," International Business Review, Elsevier, vol. 32(2).
    25. Bowe, Michael & Golesorkhi, Sougand & Yamin, Mo, 2014. "Explaining equity shares in international joint ventures: Combining the influence of asset characteristics, culture and institutional differences," Research in International Business and Finance, Elsevier, vol. 31(C), pages 212-233.

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