The relationship between international diversification (ID) and firm performance (FP) is among the best researched topics in international business. However, the findings on the role of firms’ home-country culture remain mixed, leading to repeated calls for broader cultural perspectives. We introduce the construct of cultural tightness–looseness and advance the conversation on the role of the tightness of a firm’s cultural origin. Drawing on 490 primary studies, we provide meta-analytic evidence that cultural tightness negatively moderates the ID–FP relationship.
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Jens Schüler (2024) studied this question.
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