Abstract
We test the hypothesis that culturally related international diversification will have a positive impact on firm performance and that the opposite will be true for culturally unrelated globalization. Cultural diversity for Fortune 500 firms was used to predict performance over a ten-year period (1985–1994), controlling for several organizational and industry characteristics. Regression tests using nine indicators of cultural diversity revealed no significant cultural effects. Alternate interpretations are offered.
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*Professor Luis R. Gómez-Mejia is a Dean's Council of 100 Distinguished Scholar at Arizona State University. He received his doctoral degree from the University of Minnesota.
**Leslie E. Palich is an Associate Professor of Management at the Hankamer School of Business at Baylor University. He holds a Ph.D. in management from Arizona State University.
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Gómez-mejia, L., Palich, L. Cultural Diversity and the Performance of Multinational Firms. J Int Bus Stud 28, 309–335 (1997). https://doi.org/10.1057/palgrave.jibs.8490103
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DOI: https://doi.org/10.1057/palgrave.jibs.8490103