Culture and international investment

Authored by: Rodrigo Bandeira-de-Mello

The Routledge Companion to Non-Market Strategy

Print publication date:  April  2015
Online publication date:  April  2015

Print ISBN: 9780415712316
eBook ISBN: 9781315819389
Adobe ISBN: 9781317819714


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Non-market factors have long been on the agenda of international business literature as an important explanatory and managerial variable (Rodriguez, Siegel, Hillman, and Eden, 2006). A central task for multinational corporation (MNC) managers is learning how to cope with non-market differences between their home market and foreign markets. These differences have an impact on decisions such as entry and establishment modes, location, and governance, and reflect on the performance and survival of international operations (Kirkman, Lowe, and Gibson, 2006; Ambos and Hakanson, 2014). This chapter relates two important non-market components, namely culture and politics, to the international investment decisions of developing country multinational corporations (DMNCs).

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