Porter predicts (in 2000) that cultures will increasingly move towards the productivity paradigm but that differences will remain. What are the reasons why complete convergence is unlikely, according to Porter?
- Ideas about how the economy should be organized are deeply rooted in a country and it takes time to change
- Culture is connected to the present microeconomic context and it is hard to change one without changing the other
- Economic culture is learnt from the economic context and the economic context is learnt from economic culture. One reinforces the other and it is hard to break that cycle.
Institutional distance meaning
The difference between the regulatory and cultural environment in the home country of a multinational enterprise and the host countries in which it is active
Which performance indicator was positively associated with cultural distance in Beugelsdijk et al.’s (2018) meta-analysis of the effect of ultural distance on internationalization decisions?
Innovation
Greenfield investment meaning
Starting a subunit in a host economy without a local partner
Minimalist stakeholder engagement strategy
Firms do not engage with stakeholders beyond what is legally required
Cardinal decision issue perspective model elements
Preliminaries:
1. Need
2. Mode
3. Investment
Core:
4. Options
5. Possibilities
6. Judgement
7. Value
8. Tradeoffs
Aftermath:
9. Accessibility
10. Implementation
