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Does the Home Country's National Culture Affect MNCs' Performance? Empirical Evidence of the World's Top 100 East-West Non-financial MNCs

George Halkos () and Nickolaos Tzeremes ()

Global Economic Review, 2008, vol. 37, issue 4, 405-427

Abstract: The question of why some multinational corporations (MNCs) perform better than others is at the centre of the analysis of many international business disciplines and the subject of a never-ending debate of policy-makers. The dilemma of whether the MNC's organizational culture differs from home countries' national culture is the subject of our research. We provide empirical evidence that MNCs' national cultures shape and dominate MNCs' organizational cultures with a direct impact on their performances. For the first time by using performance measurement techniques and reconstructing cultural distance indexes, we are providing empirical evidence of the impact of home country's national culture on MNCs' performance.

Keywords: MNC performance; national culture; cultural distance; data envelopment analysis (search for similar items in EconPapers)
Date: 2008
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Handle: RePEc:taf:glecrv:v:37:y:2008:i:4:p:405-427