Title: FOREIGN ENTRY, CULTURAL BARRIERS, AND LEARNING
Abstract: Strategic Management JournalVolume 17, Issue 2 p. 151-166 Original Paper FOREIGN ENTRY, CULTURAL BARRIERS, AND LEARNING HARRY G. BARKEMA, Corresponding Author HARRY G. BARKEMA Department of Economics, Tilburg University, Tilburg, The NetherlandsDepartment of Economics, Tilburg University, Tilburg, The NetherlandsSearch for more papers by this authorJOHN H. J. BELL, JOHN H. J. BELL Department of Economics, Tilburg University, Tilburg, The NetherlandsSearch for more papers by this authorJOHANNES M. PENNINGS, JOHANNES M. PENNINGS The Wharton School, University of Pennsylvania, Philadelphia, Pennsylvania, U.S.A.Search for more papers by this author HARRY G. BARKEMA, Corresponding Author HARRY G. BARKEMA Department of Economics, Tilburg University, Tilburg, The NetherlandsDepartment of Economics, Tilburg University, Tilburg, The NetherlandsSearch for more papers by this authorJOHN H. J. BELL, JOHN H. J. BELL Department of Economics, Tilburg University, Tilburg, The NetherlandsSearch for more papers by this authorJOHANNES M. PENNINGS, JOHANNES M. PENNINGS The Wharton School, University of Pennsylvania, Philadelphia, Pennsylvania, U.S.A.Search for more papers by this author First published: February 1996 https://doi.org/10.1002/(SICI)1097-0266(199602)17:2<151::AID-SMJ799>3.0.CO;2-ZCitations: 1,072AboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onEmailFacebookTwitterLinkedInRedditWechat Abstract This paper examines the longevity of foreign entries. Hypotheses are developed on the mode (start-ups vs. acquisitions) and ownership structure (wholly owned vs. joint ventures) in relation to cultural distance. The hypotheses are tested within a framework of organizational learning, using data on 225 entries that 13 Dutch firms carried out from 1966 onwards. Results show that the presence of cultural barriers punctuates an organization's learning. Cultural distance is a prominent factor in foreign entry whenever this involves another firm, requiring the firm to engage in ‘double layered acculturation.’ We also identify locational ‘paths of learning.’ The longevity of acquisitions is positively influenced by prior entries of the firm in the same country. Similarly, the longevity of foreign entries, in which the firm has a majority stake, improves whenever the expanding firm engaged in prior entries in the same country and in other countries in the same cultural block. References Agarwal, S. and S. 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