Culture and International Business

Culture and International Business: An Exploratory Review of the Empirical
Research in JIBS and MIR from 1992 to 2002
Daniel W. Baack
Boeing Institute of International Business
Saint Louis University
458 Davis-Shaughnessy Hall
3674 Lindell Boulevard
Saint Louis, MO 63108
314-977-3810
[e-mail]

Donald Baack
Pittsburg State University
1701 South Broadway
Pittsburg, Kansas 66762
620-235-4583
[e-mail]

ABSTRACT
The study of culture is an important component of international business research. This article reviews 111 empirical papers on the topic from Management International Review and
International Business Studies. The review finds that the theoretical framework presented by
Hofstede (1980) dominates the literature. Additionally, the literature can be organized into three broad research streams: 1) international expansion decisions and performance (including articles on internationalization and entry mode); 2) business differences (both on the individual and firm level); and 3) cultural differences. Based on the review areas for future research are suggested. CULTUE AND INTERNATIONAL BUSINESS
The study of culture is an important component of international business, both in terms of research and theory building. Culture may be viewed as both a cause and an effect. The culture of a nation or region may affect how work is performed. A governmental overthrow or revolution may have dramatic effects on the culture of a country.
Over the years, academics have created several theories that include culture as part of the framework. For example, some suggest that culture affects the level of uncertainty present in transaction cost theory. Culture has also been operationalized as psychic distance in internalization theory. Beyond these theoretical applications, cultural differences have important practical management and marketing implications for multinational firms.
The theoretical and practical importance of culture

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