Cultural Distance in International Ventures Exploring Perceptions of

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Cultural Distance in International Ventures

Katiuscia Vaccarini · Francesca Spigarelli Ernesto Tavoletti · Christoph Lattemann

Cultural Distance in International Ventures Exploring Perceptions of European and Chinese Managers

Katiuscia Vaccarini Free University of Bozen-Bolzano Bolzano, Italy

Ernesto Tavoletti University of Macerata Macerata, Italy

Francesca Spigarelli University of Macerata Macerata, Italy

Christoph Lattemann Jacobs University Bremen, Germany

ISBN 978-3-319-62192-0 ISBN 978-3-319-62193-7  (eBook) DOI 10.1007/978-3-319-62193-7 Library of Congress Control Number: 2017948258 © The Editor(s) (if applicable) and The Author(s) 2017 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. Cover illustration: Pattern adapted from an Indian cotton print produced in the 19th century Printed on acid-free paper This Palgrave Macmillan imprint is published by Springer Nature The registered company is Springer International Publishing AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland

Contents

1 Introduction 1 2 Psychic Distance and FDI: The Case of China 9 3 A Social Psychological Perspective on the Perceptions of Cultural Differences 43 4 European Entry Decisions in China: The Role of Cultural Perceptions 67 5 Chinese FDI and Psychic Distance Perceptions on Regulations in the German Renewable Energy Sector 103 6 Summary Conclusions 135 7 Appendix 143 Index 147

v

List of Tables

Psychic Distance and FDI: The Caseof China Table 1 Milestones in FDI theory  Table 2 Studies on PD, China, India, Japan, Taiwan, Australia, and FDI determinants Table 3 Articles regarding Asia supporting the concept of PD according to the Uppsala scholars A Social Psychological Perspectiveon the Perceptions of Cultural Differences Table 1 Child et al.’s multidimensional model of psychic distance

16 25 28

49

European