Internationalization of firms has been an on-going process for many years, however, over the recent years, there has been radical changes in the business world, which has created a more competitive business environment for firms. This change in the business environment has not been an easy process nor is it anticipated to get any easier. International firms entering new markets are faced with different challenges, which could be embedded in the behaviour specific to the people living in these countries. Cultural distance is defined as complex and intangible and measured only at a single point in time. Cultural distance easy creates an “illusion” of symmetry where measures at the time of market entry might have changed by the time the performance is measured. Measuring only the cultural distance is not enough to fully understand the international behaviour and how business practices have adapted to the foreign market, to do so one need to understand the institutional distance in order to understand the behavioural patterns existing within the foreign market and adapt its business practices accordingly. There is no support for the perception of cultural and institutional distance between two institutional contexts to be symmetric; it is an illusion of symmetry. Therefore the purpose of this study is to describe and analyze how asymmetry in firms’ perception on cultural and institutional distance affect the extent of firms’ adaptation. This is by increase understanding on how firms from different institutional contexts perceive the distance between them and to what extent they adapt their business practices to the foreign market. In order to answer this purpose a qualitative research has been conducted where managers in three firms from Sweden and three firms from China has been interviewed on their perception of distance on the opposite market. The theoretical framework has included a presentation of the cultural distance, the institutional distance and adaptation of business practices.  This has been followed by a theoretical synthesis, which has been conducted based on the theoretical concepts. Furthermore, the empirical chapter presents the findings of each case company. In the analysis chapter, the theoretical framework has been analyzed together with the empirical data. Based on the analysis the authors have been able to conclude that asymmetry in firms’ perception on distance affects the extent of firm’s adaptation of business practices to the institutional context. It can be concluded that Swedish firms adapt business practices to less extent than Chinese firms and the reason behind it is the asymmetry in firms’ perception of distance. Swedish firms investing in the Chinese market is not faced with the same distance as a Chinese firm investing in the Swedish market, and thus they do not adapt to the same degree.

Since the expatriates in management level have profound influences on the overall operation of overseas subsidiaries, it is significant for multinational corporations to understand the predictors of expatriate¡¦s entrepreneurship in cross-cultural contexts. Hence, based on 230 effective samples from expatriates in management level, this research investigates the relationships among expatriate¡¦s personality, cultural intelligence (CQ), expatriate adjustment, and international entrepreneurship, and cultural distance as a moderator. The results are outlined as follows. 1. Expatriate-oriented personality consists of high conscientiousness, agreeableness, extraversion, emotional stability (i.e., low neuroticism), and flexibility and empathy; international entrepreneurship comprises local internal initiative, external market exploitation, and venture exploration. 2. Expatriate-oriented personality has positive influences on expatriate¡¦s CQ and international entrepreneurship. 3. CQ has positive influences on expatriate adjustment and international entrepreneurship. 4. Expatriate-oriented personality has positive influences on expatriate adjustment and international entrepreneurship through the mediating effect of CQ. 5. No matter how the cultural distance is, expatriate-oriented personality is able to enhance expatriate¡¦s international entrepreneurship; in median-high cultural distance, CQ¡¦s role in international entrepreneurship achieves its maximum effectiveness; in smaller cultural distance, expatriate adjustment better promotes the performance of international entrepreneurship.

The translation of culture-specific words and expressions as well as how to fully transmit the semantics and pragmatics of a text when translating are two things that often poses problems and challenges for translators. The strategies among which one can choose are many and the translation is more or less bound to lose something along the way. In this present essay, the Swedish comic album Prins Charles känsla (2010) by Liv Strömquist and its French translation Les sentiments du Prince Charles (2012) have been studied. With the help of existing translation strategies, what is examined is initially what choices the translators have made and how this affects the French text. Based on this, I try to say something about whether the text has lost something in the translation process, and if this is case, what these losses are.

The purpose of the study was to develop a substantive theory that would provide insight into the role of the Internet in expatriate adjustment in the Kingdom of Saudi Arabia (KSA). Expatriate adjustment research has identified a number of challenges that expatriates experience when adjusting to the host country. These include spousal influence, cultural training/ understanding, fluency in the host language and the personality or emotional readiness of the expatriate. These challenges are amplified when considered in the context of the KSA, which has a large cultural distance when compared to the average Western culture and therefore, provides a setting for an interesting study. There are a limited number of studies available that consider the role of the Internet during the expatriate episode in general, but none that examine the role of the Internet on expatriate adjustment specifically. Furthermore, to the best of the researcher’s knowledge, there is no research that provides a grounded theoretical understanding of the Internet in expatriate adjustment. The research project used a Grounded Theory based approach to develop a substantive theory on the role that the Internet plays in expatriate adjustment in the KSA. The conceptual account emerged from interviewing expatriates living in Western compounds in Riyadh, the capital of the KSA. The core concern that emerged from this study is one that describes the mediating effect of the Internet. This study hypothesised that the Internet had a regulating effect on expatriates’ degree of isolation and degree of information flow which would affect both their process of adjustment and their state of adjustment. Both the expatriates’ process and state of adjustment is expressed in terms of their well-being. The theory building study presents a theoretical model, grounded in rich empirical data. The theoretical model consists of two substantive categories: degree of isolation and degree of information flow. The former explains what contributes to the feeling of isolation experienced by expatriates. It was shown that the degree of isolation is a multifaceted concept influenced by expatriates’ living space, status, social support, mobility in the KSA and state of mind. The latter substantive category, the degree of information flow, explains the extent to which information can be exchanged between expatriates and other entities, be it family, friends or the outside world in general, including communication with other expatriates in the KSA. These two substantive categories were explained through the core category which was conceptualised by using the following metaphor: “the Internet a lifeline to the real world”. Considering the lifeline properties of the Internet, the theoretical model explained how it positively effects expatriate adjustment in the KSA. It was shown that the Internet, as a mediator, had an effect when considering adjustment as a process, as a state, and as an expression of expatriate well-being. This research was guided by two key research objectives: (a) to add theoretical content to the understanding of the role that the Internet plays in expatriate adjustment, and (b) to contribute to the IS body of knowledge by producing a theory that could be applied in practice. To the researcher’s best knowledge, this study is the first in IS literature to describe the significant role and the contextual issues that surround expatriate use of the Internet in the KSA. In doing so, the study developed an understanding, grounded in rich empirical data from the substantive field of expatriates. This new understanding contributes to both IS research and practice, and provides guidance for future research. / Thesis (PhD)--University of Pretoria, 2015. / tm2015 / Informatics / PhD / Unrestricted

Strategic international public-private partnerships (SIPPPs) involve private multinational and public domestic sector parties. SIPPPs are a more complex but less studied form of international strategic alliance (ISA) and increasingly important in the development of emerging economies. A growing body of ISA research has suggested the importance of cultural differences in the often-reported failure of such cross-cultural relationships, but their exact nature remains unknown. This study examines the effects of both national and organisational cultural value systems on trust-building in SIPPPs. It uniquely also tests whether the two types of cultural values are accorded differently by the two types of partner, private and public. The complex relationship building processes were studied through the combined lenses of social-exchange and cultural-exchange theories, providing a rich perspective on the phenomenon under study. The sample, based on purposive sampling, consisted of successful and unsuccessful SIPPS of various sizes, from different industries, operating in a number of African countries. Africa, with its challenging environment and increasing focus on SIPPPs, represented an "extreme context" within which hypotheses could be rigorously tested. The relationships were tested empirically using structural equation modelling. The study confirmed a strong relationship between partners’ economic and collaborative interdependency on the one hand, and mutual trust-levels on the other. Cultural difference was shown to have both a negative direct effect as well as a positive moderating effect on trust building, providing support for the notion of a “cultural paradox”. Strong evidence was provided that partners from opposite sides of the dyad, informed by their respective cultural backgrounds, have different perceptions of the relative importance of these relationships in building trust. The findings have theoretical and practical significance, suggesting that SIPPP partners can improve trust levels and sustain their relationship by building ties of economic interdependence and engaging in collaborative actions to build their collaborative interdependence. The importance of partners being sensitive to each other’s needs and perceptions, and of engaging in reciprocity to build mutual confidence and trust seems critical. The findings have important implications for SIPPP design and needed management skills, as well as for future cross-cultural dyadic research. / Thesis (PhD)--University of Pretoria, 2018. / Gordon Institute of Business Science (GIBS) / PhD / Unrestricted

This thesis examines how cultural distance affects cross-border M&A performance of emerging market firms. The study adds to the previous literature by using a multi-measurement approach, a broader sample of emerging countries and by comparing the effects to those of developed market firms. Performance is divided into short-term performance, measured as cumulative abnormal return (CAR) and long-term performance, measured as sales growth and change in Return on Sales after the transaction (sales CAGR and change in ROS). Using a sample of transactions conducted by both emerging market firms and developed market firms during the years 1997-2019, this study finds that cultural distance has a negative effect on the long- term cross-border M&A performance of emerging market firms. However, no significant effect is found on the short-term CAR following a cross-border M&A by emerging market firms. Additionally, none of the included performance measures is affected by cultural distance on a statistically significant level following a cross-border M&A by developed market firms. The results hence indicate that the effect of cultural distance is greater for emerging market firms than developed market firms when engaging in cross-border M&As.

This study examines the influence of host country economic development and cultural distance on the creation of firm value by UK-based firms through cross-border acquisitions, analyzing the announcement effect. To assess the announcement effect, the cumulative abnormal returns (CAR) of a seven-day trading window around the announcement date are used. The sample consists of 839 acquisitions by 280 firms in 41 countries from 1997-2019. The results show that more value is created when acquiring a target firm from a developing country and cultural distance negatively influences value creation. Further research is required to investigate if cultural distance has a moderating effect on the relationship between host country economic development and value creation.

<p>Saudi Arabia is increasingly becoming one of the most attractive areas in the world for foreign investors. At the same time the country has a major influence on the economy in the Middle-East. However there exist reasons for why companies previously have been reluctant to enter this market, these reasons have mainly been related to political turbulence, foreign traditions and culture. In recent years some research has been dedicated to this area however there is still more to investigate.</p><p>The purpose of this thesis has thereby been to identify what problems Swedish companies have encountered when operating in Saudi Arabia in terms of psychic distance, asymmetric information and working towards mutual goals. Hence, what problems they have dealt with during the continuous work and to what extent they have managed to maintain their corporate culture.</p><p>The authors chose to conduct a deductive multiple case study including four Swedish companies with operations in Saudi Arabia, these were Abetong, IKEA, Oriflame and Tetra Pak. The research took a qualitative approach as four in-depth interviews were conducted with managers in suitable positions at respective company.</p><p>The findings of the thesis indicate that the companies to a great extent have been able to maintain their corporate culture, and the adaptations that were made were mainly related to women’s role in Saudi society. In terms of psychic distance, this is something that has been encountered to a certain extent by all of the companies. Challenges have mainly been faced within the areas of religion, political systems, culture and educational level whereas the economic development was generally perceived as an opportunity. As for problems with asymmetric information and working towards mutual goals, these have not been reflected to a greater extent within any of the companies. However the problems that have been encountered have been related to language barriers.</p>

The focus is on cross-sectional dependence in panel trade flow models. We propose alternative specifications for modeling time invariant factors such as socio-cultural indicator variables, e.g., common language and currency. These are typically treated as a source of heterogeneity eliminated using fixed effects transformations, but we find evidence of cross-sectional dependence after eliminating country-specific and time-specific effects. These findings suggest use of alternative simultaneous dependence model specifications that accommodate cross-sectional dependence, which we set forth along with Bayesian estimation methods. Ignoring cross-sectional dependence implies biased estimates from panel trade flow models that rely on fixed effects. / Series: Working Papers in Regional Science

Dans cette thèse, nous étudions le lien entre la distance culturelle perçue entre les immigrés et le groupe majoritaire français d’une part et les préjugés d’autre part, en examinant le point de vue des Français. Plusieurs facteurs peuvent influencer ce lien : l’adhésion au multiculturalisme par rapport à d’autres modèles d’intégration, la perception de ce modèle comme étant une menace à l’identité nationale ou encore la présentation du multiculturalisme en des termes abstraits (renvoyant à ses objectifs) ou concrets (renvoyant à sa mise en place dans un contexte national). Les résultats montrent que chez les Français qui adhèrent au multiculturalisme, la perception de distance culturelle corrèle plus faiblement avec les préjugés que chez les Français qui adhèrent à l’assimilation. En examinant davantage les attitudes intergroupes chez les Français qui adhèrent au multiculturalisme, nous avons montré que la perception de ce modèle comme étant menaçant pour l’identité nationale peut aussi influencer l’impact de la distance culturelle sur les préjugés : chez les Français qui perçoivent le multiculturalisme comme menaçant, la distance culturelle implique plus de préjugés que chez les Français qui le perçoivent comme moins menaçant. Une source de menace pour le multiculturalisme serait le degré d’abstraction de sa présentation, avec une menace plus importante lorsque l’on fait référence à la politique concrète mise en place dans un pays plutôt qu’au modèle idéal, abstrait. En effet, dans une étude comparative entre la France et les Pays-Bas, nous avons montré que le lien entre la distance culturelle et les préjugés à l’égard des immigrés est plus important lorsque le multiculturalisme est défini en termes concrets que lorsqu’il est défini en termes abstraits / In this thesis, we have studied – on the one hand – the way how perceived cultural distance between the immigrants and the French majority group is linked to prejudice by examining French people’s point of view. Several factors can influence this link: the endorsement to multiculturalism compared to other integration models, the perception of this model as a threat to national identity or the presentation of multiculturalism in abstract terms (i.e. its objectives) or concrete (i.e. its implementation in a national context). The results have shown that among the French who endorse multiculturalism, the perception of cultural distance weakly correlates with prejudice whereas it correlates more among the French who endorse assimilation’s integration model. By focusing on French people who prefer multiculturalism, we showed that the perception of this model as a threat to national identity can also influence the impact of cultural distance on prejudice. Among the French who perceive multiculturalism as threatening, cultural distance involves more prejudice than among those who perceive it as less threatening. A source of threat to multiculturalism could reside in the way it is presented – its degree of abstraction – with more threat when we refer to concrete policy achievement in a country rather than the abstract ideal model. Indeed, in a comparative study between France and the Netherlands, we showed that the link between cultural distance and prejudice towards immigrants is higher when multiculturalism is defined in concrete terms than with its abstract definition.