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We investigate how formal institutional distance (FID) moderates the cultural distance (CD) and financial performance relationships of foreign subsidiaries of firms. Following recent research, we estimate the asymmetric effects of CD by considering its size and direction towards host countries...
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The extant literature shows that firm capabilities such as knowledge transfer and innovation are highly related to firm performance. How these relationships express themselves for foreign-based firms operating in global environments is less understood. The objectives of this study are as...
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