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The impact of institutional distance on the international diversity-performance relationship

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  • Chao, Mike Chen-Ho
  • Kumar, Vikas

Abstract

We investigated the impact of institutional distance on the international diversity-performance relationship. We first discussed the international diversity-performance relationship for large multinational firms and later showed the moderation effect of regulative and normative institutional distance. Based on a sample of Fortune 500 firms, we found an inverted U-shaped curve. Regulative institutional distance has a negative moderating effect on the international diversity-performance relationship, while normative institutional distance shows a positive effect.

Suggested Citation

  • Chao, Mike Chen-Ho & Kumar, Vikas, 2010. "The impact of institutional distance on the international diversity-performance relationship," Journal of World Business, Elsevier, vol. 45(1), pages 93-103, January.
    • Handle: RePEc:eee:worbus:v:45:y:2010:i:1:p:93-103
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