Abstracts
Abstract
The relationship between international diversification (ID) and firm performance (FP) is among the best researched topics in international business. However, the findings on the role of firms’ home-country culture remain mixed, leading to repeated calls for broader cultural perspectives. We introduce the construct of cultural tightness–looseness and advance the conversation on the role of the tightness of a firm’s cultural origin. Drawing on 490 primary studies, we provide meta-analytic evidence that cultural tightness negatively moderates the ID–FP relationship.
Keywords:
- international diversification,
- internationalization,
- firm performance,
- meta-analysis,
- national culture,
- informal institutions