While cultural differences affect international joint venture performance, culture distance stems more from differences in organizational culture than from differences in national cultures

Question

Quizplus · Accepted Answer

Research suggests that cultural differences between partners can harm international joint venture (IJV) performance, but the culture distance is more attributed to differences in organizational culture than in national culture. This is because organizational culture, which includes shared values, beliefs, and assumptions about work, can vary significantly even within a country due to factors such as industry, history, and leadership style. Therefore, it's important for IJV partners to understand and negotiate these differences in organizational culture to maximize performance.

While Cultural Differences Affect International Joint Venture Performance, Culture Distance