International journal of

ADVANCED AND APPLIED SCIENCES

EISSN: 2313-3724, Print ISSN:2313-626X

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 Volume 5, Issue 7 (July 2018), Pages: 27-34

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 Original Research Paper

 Title: National cultural differences and foreign direct investment in emergent countries

 Author(s): Zaabi Elmoez *

 Affiliation(s):

 Department of Management, Arab East College for Graduate Studies, Riyadh, Saudi Arabia

 https://doi.org/10.21833/ijaas.2018.07.004

 Full Text - PDF          XML

 Abstract:

The aim of this study is to examine the effects of cultural differences on foreign direct investment performance in a rent-based economy. Regression analysis was used to test the hypotheses in a sample of 121 firms. The findings show that cultural distance, in general, did not have an effect on international foreign direct investment performance, but the hypothesis relating individualism scores of cultures from where foreign investment belongs and the performance of foreign affiliates is verified. The moral engagement of local employees appeared to have a catalytic effect. In contrast, uncertainty avoidance does not have any significant impact on the performance of affiliates. We also find that the performance of a foreign affiliate increases when they invest in the industry in which the host country has a comparative advantage. 

 © 2018 The Authors. Published by IASE.

 This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).

 Keywords: Culture distance, Individualism, Uncertainty avoidance, Rent-based-economy

 Article History: Received 13 February 2018, Received in revised form 20 April 2018, Accepted 26 April 2018

 Digital Object Identifier: 

 https://doi.org/10.21833/ijaas.2018.07.004

 Citation:

 Elmoez Z (2018). National cultural differences and foreign direct investment in emergent countries. International Journal of Advanced and Applied Sciences, 5(7): 27-34

 Permanent Link:

 http://www.science-gate.com/IJAAS/2018/V5I7/Elmoez.html

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