Cultural diversity and the performance of multinational firms

Luis Gomez-Mejia, Leslie E. Palich

Research output: Contribution to journalArticle

293 Citations (Scopus)

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.

Original languageEnglish (US)
Pages (from-to)309-335
Number of pages27
JournalJournal of International Business Studies
Volume28
Issue number2
DOIs
StatePublished - 1997

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Industry
Multinational firms
Cultural diversity
Firm performance
International diversification
Globalization
Industry characteristics
Organizational characteristics

ASJC Scopus subject areas

  • Business and International Management
  • Business, Management and Accounting(all)
  • Economics and Econometrics
  • Strategy and Management
  • Management of Technology and Innovation

Cite this

Cultural diversity and the performance of multinational firms. / Gomez-Mejia, Luis; Palich, Leslie E.

In: Journal of International Business Studies, Vol. 28, No. 2, 1997, p. 309-335.

Research output: Contribution to journalArticle

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