A Study of the Influence of Cultural Distance on the Retention of Multinational Exhibitors

Abstract

ABSTRACT Customer retention is an important basis for International Trade shows to obtain sustained competitive advantage, and the retention of multinational exhibitors is largely influenced by cultural heterogeneity. This study intends to explore the influence of cultural distance on the retention of multinational exhibitors based on Hofstede’s national culture model. It is based on an analysis of 4476 multinational exhibitors from 7 famous international trade shows in China through web crawler technology. The results reveal that total cultural distance has a significant positive effect on the retention of multinational exhibitors. However, different sub-dimensions under cultural distance may have different effects. In terms of sub-dimensions including power distance, individualism and uncertainty avoidance, the greater the cultural distance, the easier it is to retain customers. As for sub-dimensions of long term orientation, the estimated results display an opposite tendency. The findings contribute to the literature and have practical implications for international trade shows’ service and management.