The effect of cultural and institutional distance on export: The case of Turkey

Year 2022, Volume: 15 Issue: 3, 611 - 632, 31.07.2022

Enes Uğur Tohum , Yavuz Demirel

https://doi.org/10.25287/ohuiibf.1035305

Abstract

With the acceleration of globalization recently, capital mobility between countries has become very important. At this point, although developed countries have advantages in certain areas; it is expected that developing countries will assume a more assertive role to realize their economic development. The internationalization movement, which started with the transfer of commercial activities of businesses from national areas to international areas; is a topic of interest in international trade. On this subject, it is crucial to carry out studies focused on developing countries, as well as developed country-oriented studies, which are frequently studied in the context of the internationalization of enterprises. In this context, the aim of the study is to determine the effect of cultural and institutional distance on exports on the scope of Turkey. The study also focuses on examining the direct effect of cultural and institutional distance, as well as the effect of its sub-dimensions on the dependent variable. In this context, within the framework of independent variables, 75 countries to which Turkey exports were determined as samples. In this research, export data, which is one of the internationalization strategies, was used as the dependent variable. In the study, two main hypotheses were determined to test the effect of the independent variable on the dependent variable. Moreover, since the study was designed in the context of Turkey, the third hypothesis was put forward considering the development status of the countries. According to the results of the research, while "individuality", one of the sub-dimensions of cultural distance, has a significant effect on the dependent variable; power distance, masculinity, uncertainty avoidance, long-term orientation, and indulgence dimensions do not seem to have a significant effect. However, it is determined that the regulatory, normative,and cognitive sub-dimensions of institutional distance have a significant effect on the dependent variable. Finally, it is seen that the amount of exports differs according to the development levels of the countries.

Keywords

Internationalization, Cultural Distance, Institutional Distance, Export

Kültürel ve kurumsal mesafenin ihracat üzerine etkisi: Türkiye örneği

Abstract

Küreselleşmenin son zamanlarda hız kazanması ile birlikte ülkeler arasındaki sermaye hareketliliği de oldukça önemli hale gelmiştir. Bu noktada gelişmiş ülkelerin belli başlı alanlarda avantajları olmasına rağmen; gelişmekte olan ülkelerin ekonomik gelişimlerini gerçekleştirmek adına daha atılgan bir rol üstlenmesi beklenmektedir. İşletmelerin ticari faaliyetlerini ulusal alanlardan uluslararası alanlara taşıması ile başlayan uluslararasılaşma hareketi; uluslararası ticarette ilgi gören bir konudur. Bu konu üzerinde, işletmelerin uluslararasılaşması bağlamında sıklıkla çalışılan, gelişmiş ülke odaklı çalışmaların yanında gelişmekte olan ülke odaklı çalışmaların yapılması da oldukça önemlidir. Bu kapsamda çalışmanın amacı Türkiye bağlamında kültürel ve kurumsal mesafenin ihracat üzerine etkisini tespit etmektir. Çalışmada ayrıca kültürel ve kurumsal mesafenin doğrudan etkisinin yanı sıra alt boyutlarının bağımlı değişken üzerindeki etkisinin incelenmesine odaklanılmaktadır. Bu bağlamda bağımsız değişkenler çerçevesinde Türkiye’nin ihracat gerçekleştirdiği 75 ülke örneklem olarak belirlenmiştir. Çalışmada bağımlı değişken olarak uluslararasılaşma stratejilerinden biri olan ihracat verileri dikkate alınmıştır. Çalışmada bağımsız değişkenin bağımlı değişken üzerinde etkisinin test edilebilmesi için iki ana hipotez belirlenmiş ve Türkiye bağlamında çalışma tasarlandığından dolayı ülkelerin gelişmişlik durumları göz önüne alınarak üçüncü hipotez ortaya konulmuştur. Araştırma sonuçlarına göre kültürel mesafe alt boyutlarından “bireysellik” bağımlı değişken üzerinde anlamlı etkiye sahip iken; güç mesafesi, erkeklik/dişilik, belirsizlikten kaçınma, uzun dönemli uyum sağlama ve hoşgörü/kısıtlama boyutlarının anlamlı etkiye sahip olmadığı görülmektedir. Bununla birlikte kurumsal mesafenin düzenleyici, normatif ve bilişsel alt boyutlarının bağımlı değişken üzerinde anlamlı etkiye sahip olduğu ve ihracat miktarının ülkelerin gelişmişlik düzeylerine göre farklılık gösterdiği tespit edilmektedir.

Keywords

Uluslararasılaşma, Kültürel Mesafe, Kurumsal Mesafe, İhracat

References

• Anand, J., & Delios, A. (1997). Location Specificity and the Transferability of Downstream Assets to Foreign Subsidiaries. Journal of İnternational Business Studies, 28(3), 579-603.
• Azar, G., & Drogendijk, R. (2016). Cultural Distance, İnnovation and Export Performance. European Business Review.
• Beugelsdijk, S., Groot, H. D., Linders, G. J., & Slangen, A. (2004). Cultural Distance, Institutional Distance and İnternational Trade.
• Brouthers, K. D., & Brouthers, L. E. (2001). Explaining the National Cultural Distance Paradox. Journal of International Business Studies, 32(1), 177-189.
• Brouthers, K. D., & Hennart, J. F. (2007). Boundaries of The Firm: Insights from International Entry Mode Research. Journal of management, 33(3), 395-425.
• Davis, P. S., Desai, A. B., & Francis, J. D. (2000). Mode of International Entry: An Isomorphism Perspective. Journal of International Business Studies, 31(2), 239-258.
• de Groot, H. L. F., Linders, G.-J., Rietveld, P., & Subramanian, U. (2004). The Institutional Determinants of Bilateral Trade Patterns. Kyklos, 57(1), 103–124.
• DeBode, J. D., Haggard, D. L., & Haggard, K. S. (2019). Economic Freedom and Hofstede’s Cultural Dimensions. International Journal of Organization Theory & Behavior, 65-84. Demirbag, M., Tatoglu, E., & Glaister, K. W. (2007). Factors Influencing Perceptions of Performance: The Case of Western FDI in an Emerging Market. International Business Review, 16(3), 310-336.
• Deng, Z., & Sinkovics, R. R. (2018). Rapid Expansion of International New Ventures across Institutional Distance. Journal of International Business Studies, 49(8), 1010-1032.
• DiMaggio, P. J., & Powell, W. W. (1983). The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields. American Sociological Review, 147-160.
• Dow, D. (2000). A Note on Psychological Distance and Export Market Selection. Journal of International Marketing, 8(1), 51-64.
• Dow, D., & Karunaratna, A. (2006). Developing a Multidimensional İnstrument to Measure Psychic Distance Stimuli. Journal of International Business Studies, 37(5), 578-602.
• Drogendijk, R., & Slangen, A. (2006). Hofstede, Schwartz, or Managerial Perceptions? The Effects of Different Cultural Distance Measures on Establishment Mode Choices by Multinational Enterprises. International Business Review, 15(4), 361-380.
• Eden, L. & Miller, S. R. (2004). Distance Matters: Liability of Foreignness, Institutional Distance and Ownership Strategy, Michael A. Hitt ve Joseph L. Cheng (ed.), Theories of The Multinational Enterprise: Diversity, Complexity and Relevance, (Advances in International Management, Vol.16), içinde, (187- 221), Amsterdam, Netherlands: Elsevier.
• Gödekmerdan Önder, L. ve Güllülü, U., (2013). Türkiye’nin Avrupa Birliği Ülkelerine İhracatında Psikolojik Mesafenin Rolü. KAU IIBF Dergisi, 4(5), 169-194.
• He, X., Brouthers, K. D., & Filatotchev, I. (2013). Resource-based and Institutional Perspectives on Export Channel Selection and Export Performance. Journal of Management, 39(1), 27-47.
• He, X., Brouthers, K. D., & Filatotchev, I. (2013). Resource-based and Institutional Perspectives on Export Channel Selection and Export Performance. Journal of Management, 39(1), 27-47.
• He, X., Brouthers, K. D., & Filatotchev, I. (2018). Market Orientation and Export Performance: The Moderation of Channel and Institutional Distance. International Marketing Review.
• Hofstede, G. (1980a). Motivation, Leadership and Organization: Do American Theories Apply Abroad? Organizational Dynamics. 9(1): 42-63.
• Hofstede, G. (1983a). The Cultural Relativity of Organizational Practices and Theories. Journal of International Business Studies, 14(2), 75-89.
• Hofstede, G. (1983b). National Cultures in Four Dimensions: A Research-based Theory of Cultural Differences among Nations. International Studies of Management & Organization, 13(1-2), 46-74.
• Hofstede, G. (1984). Cultural Dimensions in Management and Planning. Asia Pacific Journal of Management, 1(2), 81-99.
• Hofstede, G. (2001). Culture's Consequences: Comparing Values, Behaviors, İnstitutions and Organizations across Nations. Sage publications.
• Hofstede, G. (2011). Dimensionalizing Cultures: The Hofstede Model in Context. Online Readings in Psychology and Culture, 2(1), 8.
• Hofstede, G., & Bond, M. H. (1988). The Confucius Connection: From Cultural Roots to Economic Growth. Organizational Dynamics, 16(4), 5-21.
• Hofstede, G., & Minkov, M. (2010). Long-versus Short-term Orientation: New Perspectives. Asia Pacific Business Review, 16(4), 493-504.
• Hoftede, G., Hofstede, G. J., & Minkov, M. (2010). Cultures and Organizations: Software of the Mind: Intercultural Cooperation and Its İmportance for Survival. McGraw-Hill.
• İlhan, T. (2006). Kültürel Farklılıkların Doğrudan Yabancı Yatırımcıların Giriş Stratejileri Üzerindeki Etkileri: Türkiye Örneği, Atatürk Üniversitesi İktisadi ve İdari Bilimler Dergisi, 20(1), 211-232.
• İlhan, T. (2007). Uluslararası Ortak Girişimlerde Mülkiyet Yapısı: Yönetsel Kontrol Düzeyinin ve Kültürel Farklılıkların Etkisi, Akdeniz İ.İ.B.F Dergisi, 13, 122-148.
• Kartal, B. ve Sofyalıoğlu, Ç. (2009). Kültürel Uzaklığın Dış Pazara Giriş Yöntemi Üzerindeki Etkisinin Türkiye’deki Yabancı Yatırımlar Açısından İncelenmesi. Celal Bayar Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, 7(2), 111-126.
• Kaufmann, D., Kraay, A., & Mastruzzi, M. (2002). Governance Matters II: Updated Indicators for 2000–01, World Bank Policy research working paper, no. 2772.
• Kogut, B., & Singh, H. (1988). The Effect of National Culture on the Choice of Entry Mode. Journal of International Business Studies, 19(3), 411-432.
• Korneliussen, T. & Blasius, J. (2008). The Effects of Cultural Distance, Free Trade Agreements, and Protectionism on Perceived Export Barriers, Journal of Global Marketing, 21:3, 217-230, DOI: 10.1080/08911760802152074
• Korneliussen, T. & Blasius, J. (2008). The Effects of Cultural Distance, Free Trade Agreements, and Protectionism on Perceived Export Barriers, Journal of Global Marketing, 21:3, 217-230, DOI: 10.1080/08911760802152074
• Kostova, T. (1996). Success of Transnational Transfer of Strategic Organizational Practices within Multinational Companies, Unpublished Doctoral Dissertation, University of Minnesota, Minneapolis.
• Kostova, T. (1999). Transnational Transfer of Strategic Organizational Practices: A Contextual Perspective. Academy of Management Review, 24(2), 308-324.
• Kostova, T., & Roth, K. (2002). Adoption of an Organizational Practice by Subsidiaries of Multinational Corporations: Institutional and Relational Effects. Academy of Management Journal, 45(1), 215-233.
• Kostova, T., & Zaheer, S. (1999). Organizational Legitimacy under Conditions of Complexity: The Case of the Multinational Enterprise. Academy of Management Review, 24(1), 64-81.
• Kostova, T., Roth, K., & Dacin, M. T. (2008). Institutional Theory in the Study of Multinational Corporations: A Critique and New Directions. Academy of Management Review, 33(4), 994-1006.
• Kristjánsdóttir, H., Guðlaugsson, Þ. Ö., Guðmundsdóttir, S., & Aðalsteinsson, G. D & Gylfi Dalmann Aðalsteinsson, G. D. (2017) Hofstede National Culture and International Trade, Applied Economics, 49:57, 5792-5801, DOI: 10.1080/00036846.2017.1343446
• Lankhuizen, M. B., & de Groot, H. L. (2016). Cultural Distance and International Trade: A Non-linear Relationship. Letters in Spatial and Resource Sciences, 9(1), 19-25. DOI 10.1007/s12076-014-0129-8
• Linders, G.-J. M., Slangen, A., de Groot, H. L. F., & Beugelsdijk, S. (2005). Cultural and Institutional Determinants of Bilateral Trade Flows. Tinbergen İnstitute Discussion Paper, no. 2005-074/3.
• Liu, A., Lu, C., & Wang, Z. (2020). The Roles of Cultural and Institutional Distance in International Trade: Evidence from China's Trade with the Belt and Road Countries. China Economic Review, 61, 101234.
• Meyer, J. W., & Rowan, B. (1977). Institutionalized Organizations: Formal Structure as Myth and Ceremony. American Journal of Sociology, 83(2), 340-363.
• Padmanabhan, P., & Cho, K. R. (1996). Ownership Strategy for a Foreign Affiliate: An Empirical Investigation of Japanese Firms. MIR: Management International Review, 45-65.
• Peng, M. W. (2003). Institutional Transitions and Strategic Choices. Academy of Management Review, 28(2), 275-296.
• Quer, D., Claver, E., & Rienda, L. (2007). The Impact of Country Risk and Cultural Distance on Entry Mode Choice. Cross Cultural Management: An International Journal.
• Quer, D., Claver, E., & Rienda, L. (2012). Political Risk, Cultural Distance, and outward Foreign Direct Investment: Empirical Evidence from Large Chinese Firms. Asia Pacific Journal of Management, 29(4), 1089-1104.
• Ruef, M., & Scott, W. R. (1998). A Multidimensional Model of Organizational Legitimacy: Hospital Survival in Changing Institutional Environments. Administrative Science Quarterly, 877-904.
• Scott, P. (1995). The Meanings of Mass Higher Education. McGraw-Hill Education (UK).
• Scott, W.R. (2008). Institutions and Organizations. 3rd ed. Thousand Oaks: Sage Publications.
• Slangen, A. H., Beugelsdijk, S., & Hennart, J. F. (2011). The Impact of Cultural Distance on Bilateral Arm’s Length Exports. Management International Review, 51(6), 875-896.
• Tihanya, L., Griffith, D.A. & Russell, C.J. (2005). The Effect of Cultural Distance on Entry Mode Choice, International Diversification, and MNE Performance: A Meta-Analysis, Journal of International Business Studies 36(3): 270–283.
• Tunçay Sayğan. S., & Süral Özer, P. (2020). Kültürü Çözümlemeye İlişkin Sınıflamalar 1. Third Sector Social Economic Review, 55(1), 20-39.
• Whitley, R. (1994). Dominant Forms of Economic Organization in Market Economies, Organization Studies, 15(2), 153-182
• Whitley, R. (1999), Divergent Capitalism: The Social Structuring and Change of Business Systems, Oxford University Press: New York.
• Xu, D., & Shenkar, O. (2002). Note: Institutional Distance and the Multinational Enterprise. Academy of Management Review, 27(4), 608-618.
• Yamak, S. (2006). Changing Institutional Environment and Business élites in Turkey, Society and Business Review, 1(3), 206-219.
• Zhao, H., Luo, Y. & Suh, T. (2004). Transaction Cost Determinants and Ownership-based Entry Mode Choice: A Meta-Analytical Review, Journal of International Business Studies, 35(6): 524–544.