Abstract
This paper is an attempt to illuminate the effect of fit between allies' cultures on their trust and to analyse the moderating role of institutional framework on this effect. A quantitative empirical analysis, adopting a hypothetico-deductive approach, was carried out in order to validate the causal model. The results, declined from a collected data by a survey distributed to 114 international alliances, evince that the cultural fit of allies influences positively the trust between themselves. Besides, they highlight the role of the institutional framework which moderates positively and reinforces the effect of the allies' cultures compatibility on the trust between themselves. This can be explained by the fact that the rigour of the institutional framework represents for allies a guarantee of their tangible and intangible assets' protection and collaboration. Keywords: Organisational cultures fit, national cultures fit, intercultural intelligence, mistrust, goodwill.
Highlights
Globalisation and increased investments needed to develop new products and keep margins in markets are pushing companies to alliances (Ouedraogo, 2003)
Institutional distance between countries plays an important role in achieving common strategic interests, transferring knowledge and determining cultural differences and performance
Institutional distance between allies' countries plays an important role in achieving the common strategic interests, the knowledge transfer between them, the determination of cultural differences and the performance of their investments
Summary
Globalisation and increased investments needed to develop new products and keep margins in markets are pushing companies to alliances (Ouedraogo, 2003). To effectively deploy resources in a foreign country, partners must identify the differences between institutional environments of their countries and develop a strategy that goes with them (Gelbuda, Meyer & Delios, 2008). Institutional distance between countries plays an important role in achieving common strategic interests, transferring knowledge and determining cultural differences and performance. It can have a moderator effect on the causal relation between intercultural fit and trust. This study aims so to deepen cultural fit’s studies, to argue the moderator role of the institutional environment and to propose guidelines for a better partner choice, better alliances management and contract signature
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