Skip to main content
Log in

Distance without direction: Restoring credibility to a much-loved construct

  • Commentary
  • Published:
Journal of International Business Studies Aims and scope Submit manuscript

Abstract

In this commentary we build on Shenkar's (2001) award-winning critique of cultural distance, arguing that most distance constructs, in fact, suffer the same flaws because they oversimplify the relationship between countries, overlook their subjective and context-specific nature, and pay insufficient attention to the mechanisms through which distance operates. The idea of distance, however, has intrinsic value. Moreover, its considerable appeal and undeniable effectiveness have made it a well-entrenched construct. Therefore we see merit in redressing its weaknesses, and offer several suggestions for doing so. These include allowing for the influence of firm-level characteristics that either moderate the effects of distance or render distance – at least in part – subjective with varying consequences for different MNEs; maintaining directionality by distinguishing between distance and the tendency toward a particular characteristic and acknowledging asymmetry; and conceptualizing the effects of distance and the mechanisms through which it operates more carefully by drawing on concepts and measures from a variety of disciplines. By offering ways to strengthen both its theoretical foundations and measurement, we hope to enhance the usefulness of one of international business theory's most central constructs.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Figure 1

References

  • Bastien, D. T. 2000. Communication and organizational patterns of mergers and acquisitions, Unpublished Doctoral Thesis, University of Minnesota.

  • Baysinger, B. D., & Butler, H. N. 1985. Corporate governance and the board of directors: Performance effects of changes in board composition. Journal of Law, Economics, & Organization, 1 (1): 101–124.

    Google Scholar 

  • Bergstrand, J. H. 1985. The gravity equation in international trade: Some microeconomic foundations and empirical evidence. Review of Economics and Statistics, 67 (3): 474–481.

    Article  Google Scholar 

  • Beugelsdijk, S., McCann, P., & Mudambi, R. 2010. Place, space and organization: Economic geography and the multinational enterprise. Journal of Economic Geography, 10 (4): 485–493.

    Article  Google Scholar 

  • Bresman, H., Birkinshaw, J., & Nobel, R. 1999. Knowledge transfer in international acquisitions. Journal of International Business Studies, 30 (3): 439–462.

    Article  Google Scholar 

  • Cannella, A., Park, J., & Lee, H. 2008. Top management team functional background diversity and firm performance: Examining the roles of team member colocation and environmental uncertainty. Academy of Management Journal, 51 (4): 768–784.

    Google Scholar 

  • Cantwell, J. 2009. Location and the multinational enterprise. Journal of International Business Studies, 40 (1): 35–41.

    Article  Google Scholar 

  • Chiswick, B. R., & Miller, P. W. 2005. Linguistic distance: A quantitative measure of the distance between English and other languages. Journal of Multilingual and Multicultural Development, 26 (1): 1–11.

    Article  Google Scholar 

  • Crystal, D. 2003. English as a global language (2nd edn). Cambridge: Cambridge University Press.

    Book  Google Scholar 

  • Dastidar, P., & Zaheer, S. 2010. Dealing with information asymmetry in cross-border acquisitions: Distance matters, Best Paper Proceedings, Academy of Management Annual Meeting, Montreal, Canada.

  • Dunning, J. H. 1998. Location and the multinational enterprise: A neglected factor? Journal of International Business Studies, 29 (1): 45–66.

    Article  Google Scholar 

  • Ellis, R. 1994. The study of second language acquisition. Oxford: Oxford University Press.

    Google Scholar 

  • Fabrikant, S. I., & Buttenfield, B. P. 2001. Formalizing semantic spaces for information access. Annals of the Association of American Geographers, 91 (2): 263–280.

    Article  Google Scholar 

  • Ghemawat, P. 2001. Distance still matters: The hard reality of global expansion. Harvard Business Review, 79 (8): 137–147.

    Google Scholar 

  • Ghemawat, P. 2003. The forgotten strategy. Harvard Business Review, 81 (11): 76–87.

    Google Scholar 

  • Ghemawat, P. 2007. Redefining global strategy: Crossing borders in a world where differences still matter. Boston, MA: Harvard Business School Press.

    Google Scholar 

  • Håkanson, L., & Ambos, B. 2010. The antecedents of psychic distance. Journal of International Management, 16 (3): 195–210.

    Article  Google Scholar 

  • Hart-Gonzales, L., & Lindemann, S. 1993. Expected achievement in speaking proficiency. Washington, DC: Foreign Services Institute, US Department of State.

    Google Scholar 

  • Hofstede, G. 1980. Culture's consequences: International differences in work-related values. Newbury Park, CA: Sage Publications.

    Google Scholar 

  • Hofstede, G. 2001. Culture's consequences: Comparing values, behaviors, institutions, and organizations across nations (2nd edn). Thousand Oaks, CA: Sage.

    Google Scholar 

  • Hofstede, G. 2006. What did GLOBE really measure? Researchers’ minds versus respondents’ minds. Journal of International Business Studies, 37 (6): 882–896.

    Article  Google Scholar 

  • House, R. J., Hanges, P. J., Javidan, M., Dorfman, P. W., & Gupta, V. 2004. Culture, leadership, and organizations: The GLOBE study of 62 societies. Thousand Oaks, CA: Sage.

    Google Scholar 

  • Hutzschenreuter, T., & Voll, J. C. 2008. Performance effects of “added cultural distance” in the path of international expansion: The case of German multinational enterprises. Journal of International Business Studies, 39 (1): 53–70.

    Article  Google Scholar 

  • Javidan, M., House, R. J., Dorfman, P. W., Hanges, P. J., & de Luque, M. S. 2006. Conceptualizing and measuring cultures and their consequences: A comparative review of GLOBE's and Hofstede's approaches. Journal of International Business Studies, 37 (6): 897–914.

    Article  Google Scholar 

  • Johanson, J., & Vahlne, J. -E. 1979. The internationalization process of the firm: A model of knowledge development and increasing foreign market commitments. Journal of International Business Studies, 8 (1): 23–32.

    Article  Google Scholar 

  • Kanagaretnam, K., Lim, C. Y., & Lobo, G. J. 2011. Effects of national culture on earnings quality of banks. Journal of International Business Studies, 42 (6): 853–874.

    Article  Google Scholar 

  • Kogut, B., & Singh, H. 1988. The effect of national culture on the choice of entry mode. Journal of International Business Studies, 19 (3): 411–432.

    Article  Google Scholar 

  • Maznevski, M. L., & Chudoba, K. M. 2000. Bridging space over time: Global virtual team dynamics and effectiveness. Organization Science, 11 (5): 473–492.

    Article  Google Scholar 

  • Mudambi, R. 2008. Location, control and innovation in knowledge-intensive industries. Journal of Economic Geography, 8 (5): 699–725.

    Article  Google Scholar 

  • Nachum, L., & Song, S. 2011. The MNE as a portfolio: Interdependencies in MNE growth strategy. Journal of International Business Studies, 42 (3): 381–405.

    Article  Google Scholar 

  • Nachum, L., Zaheer, S., & Gross, S. 2008. Does it matter where countries are? Proximity to knowledge, markets and resources, and MNE location choices. Management Science, 54 (7): 1252–1265.

    Article  Google Scholar 

  • Piscitello, L. 2011. Strategy, location, and the conceptual metamorphosis of the MNE. Global Strategy Journal, 1 (1–2): 127–131.

    Article  Google Scholar 

  • Schein, E. H. 1985. Organizational culture and leadership. San Francisco, CA: Jossey-Bass.

    Google Scholar 

  • Schomaker, M. S. 2006. Communication and organizational patterns of mergers and acquisitions, Unpublished Doctoral thesis, University of Minnesota.

  • Shenkar, O. 2001. Cultural distance revisited: Towards a more rigorous conceptualization and measurement of cultural differences. Journal of International Business Studies, 32 (3): 519–535.

    Article  Google Scholar 

  • Shenkar, O. 2012. Beyond “cultural distance”: Switching to a friction lens in the study of cultural differences. Journal of International Business Studies, 43 (1): 12–17.

    Article  Google Scholar 

  • Shenkar, O., Luo, Y., & Yeheskel, O. 2008. From “distance” to “friction”: Substituting metaphors and redirecting intercultural research. Academy of Management Review, 33 (4): 905–923.

    Article  Google Scholar 

  • Stahl, G. K., Maznevski, M. L., Voigt, A., & Jonsen, K. 2010. Unraveling the effects of cultural diversity in teams: A meta-analysis of research on multicultural work groups. Journal of International Business Studies, 41 (4): 690–709.

    Article  Google Scholar 

  • Szulanski, G. 1996. Exploring internal stickiness: Impediments to the transfer of best practice within the firm. Strategic Management Journal, 17 (Winter Special Issue): 27–43.

    Article  Google Scholar 

  • Tobler, W. R. 1970. A computer movie simulating urban growth in the Detroit region. Economic Geography, 46 (2): 234–240.

    Article  Google Scholar 

  • Von Glinow, M. A., Shapiro, D. L., & Brett, J. M. 2004. Can we talk, and should we? Managing emotional conflict in multicultural teams. Academy of Management Review, 29 (4): 578–592.

    Google Scholar 

  • Weber, Y., & Shenkar, O. 1996. National and corporate cultural fit in mergers/acquisitions: An exploratory study. Management Science, 42 (8): 1215–1227.

    Article  Google Scholar 

  • Zaheer, A., & Hernandez, Z. 2011. The geographic scope of the MNC and its alliance portfolio: Resolving the paradox of distance. Global Strategy Journal, 1 (1–2): 109–126.

    Article  Google Scholar 

  • Zaheer, S., & Nachum, L. 2011. Sense of place: From location resources to MNE locational capital. Global Strategy Journal, 1 (1–2): 96–108.

    Article  Google Scholar 

  • Zaheer, S., & Zaheer, A. 2006. Trust across borders. Journal of International Business Studies, 37 (1): 21–29.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Additional information

Accepted by John Cantwell, Editor-in-Chief, 12 September 2011. This paper has been with the authors for one revision.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Zaheer, S., Schomaker, M. & Nachum, L. Distance without direction: Restoring credibility to a much-loved construct. J Int Bus Stud 43, 18–27 (2012). https://doi.org/10.1057/jibs.2011.43

Download citation

  • Received:

  • Revised:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1057/jibs.2011.43

Keywords

Navigation