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

Chao, Mike Chen-Ho; Kumar, Vikas
January 2010
Journal of World Business;Jan2010, Vol. 45 Issue 1, p93
Academic Journal
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.


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