Strategic decision-making processes in internationalization

Author(s)
Pavlos Dimitratos, Andreas Petrou, Emmanuella Plakoyiannaki, Jeffrey E. Johnson
Abstract

We seek to examine how national culture values affect strategic decision-making processes (SDMPs) of internationalized firms. We employ the cultural relativity theory to explain how firms from different countries make international decisions. We advance hypotheses regarding the associations between three SDMP dimensions and three national culture aspects, notably the relationships between hierarchical decentralization and power distance; lateral communication and individualism; and, formalization and uncertainty avoidance. We present evidence from a large-scale study conducted on 528 internationalized small and medium-sized firms based in the USA, UK, Greece and Cyprus. The findings support our hypotheses with the exception of that concerning lateral communication and individualism. The national culture of the focal firm matters as far as SDMPs in internationalization are concerned. Implications and further research directions are discussed.

Organisation(s)
External organisation(s)
Athens University of Economics and Business, Cyprus International Institute of Management, St. Mary's University San Antonio, Aristotle University of Thessaloniki
Journal
Journal of World Business
Volume
46
Pages
194-204
No. of pages
11
ISSN
1090-9516
DOI
https://doi.org/10.1016/j.jwb.2010.05.002
Publication date
04-2011
Peer reviewed
Yes
Austrian Fields of Science 2012
502016 SME-research
Keywords
ASJC Scopus subject areas
Business and International Management, Finance, Marketing
Portal url
https://ucrisportal.univie.ac.at/en/publications/3494dc62-d30c-41e0-a9f0-fe0996dcfacd