When companies expand across borders, they also cross cultures, and that can affect their international business activities. New research from Chengguang Li shows cultural differences, such as variations in the strengths of social norms (cultural tightness or looseness), as well as political context, influence cross-border business.
“These environmental factors are often considered noise variables. They are not at the very core of the actual international business activities, such as joint ventures or mergers and acquisitions, but we find they have a significant impact on business outcomes,” he said.
His future research will examine cultural variations in relation to expatriate and joint venture performance. He is also looking at how nationalism and volatile political environments influence global strategies.
Listen to an interview with Chengguang Li