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Cross-national diversity: implications for international expansion decisions

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  • Punnett, Betty Jane
  • Clemens, Jason

Abstract

This project examined the relationship of national diversity in team makeup on an international expansion decision. Decisions of homogeneous and nationally diverse teams were compared in an experimental study. Nationally diverse teams took significantly longer to reach decisions, and considered significantly more options than did homogeneous groups. Homogeneous, Canadian teams ranked home expansion options significantly more attractive than did nationally diverse teams. The results of the study suggest that it is important for firms to understand and use cross-national diversity when considering international expansion.

Suggested Citation

  • Punnett, Betty Jane & Clemens, Jason, 1999. "Cross-national diversity: implications for international expansion decisions," Journal of World Business, Elsevier, vol. 34(2), pages 128-138, July.
    • Handle: RePEc:eee:worbus:v:34:y:1999:i:2:p:128-138
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    References listed on IDEAS

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    1. Bruce Kogut & Harbir Singh, 1988. "The Effect of National Culture on the Choice of Entry Mode," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(3), pages 411-432, September.
    2. Kumar, V. & Subramanian, Velavan, 1997. "A contingency framework for the mode of entry decision," Journal of World Business, Elsevier, vol. 32(1), pages 53-72, April.
    3. Shawna O'Grady & Henry W Lane, 1996. "The Psychic Distance Paradox," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(2), pages 309-333, June.
    4. Luis R Gómez-Mejia & Leslie E Palich, 1997. "Cultural Diversity and the Performance of Multinational Firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 28(2), pages 309-335, June.
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    Cited by:

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    2. Mitchell, Rebecca & Boyle, Brendan & Nicholas, Stephen & Maitland, Elizabeth & Zhao, Shuming, 2016. "Boundary conditions of a curvilinear relationship between decision comprehensiveness and performance: The role of functional and national diversity," Journal of Business Research, Elsevier, vol. 69(8), pages 2801-2811.
    3. Fernandez, Anne-Sophie & Chiambaretto, Paul & Chauvet, Mathieu & Engsig, Juliane, 2021. "Why do MNEs both make and coopete for innovation?," Technovation, Elsevier, vol. 106(C).
    4. Yaping Gong, 2006. "The impact of subsidiary top management team national diversity on subsidiary performance: Knowledge and legitimacy perspectives," Management International Review, Springer, vol. 46(6), pages 771-790, December.
    5. Anne Susann Bachmann, 2006. "Melting pot or tossed salad? Implications for designing effective multicultural workgroups," Management International Review, Springer, vol. 46(6), pages 721-748, December.

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