Int. J. Strategic Business Alliances, Vol. 3, No. 1, 2013 93
Copyright © 2013 Inderscience Enterprises Ltd.
Cultural distance and the performance of
international joint ventures: a critical assessment of
model specifications and variable measurement
Jeppe Christoffersen
Department of Accounting and Auditing,
Copenhagen Business School,
Solbjerg Plads 3, C 4.29,
DK-2000 Frederiksberg, Denmark
E-mail: jc.acc@cbs.dk
Steven Globerman
Kaiser Professor of International Business,
Western Washington University,
College of Business and Economics,
Bellingham, WA 98225-9075, USA
E-mail: steven.globerman@wwu.edu
Bo Bernhard Nielsen*
Department of Strategic Management and Globalization,
Copenhagen Business School,
Porcelaenshaven 24B, 1st floor,
DK-2000 Frederiksberg, Denmark
E-mail: bn.smg@cbs.dk
*Corresponding author
Abstract: This study provides a critical summary and assessment of the
empirical literature on the relationship between cultural distance and the
performance of international joint ventures (IJVs) based on studies published
over the period 1993–2008. The existing literature reports inconsistent and
largely statistically insignificant findings for the relationship. We add to this
literature by analysing some 63 empirical studies of the cultural distance – IJV
performance linkage. We further confirm the absence of any consistent and
statistically significant linkage, despite strong conceptual arguments for
anticipating a strong empirical relationship. We also evaluate different
proposed explanations of the weak empirical findings in the literature and find
some mixed support for these explanations. We conclude with some
suggestions for improving the modelling of the cultural distance – IJV
performance relationship.
Keywords: cultural distance; international joint venture; performance; model
specification; variable measurement.