The Effect of Cultural Distance on International Marketing Strategy: A Comparison of Cultural Distance and Managerial Perception Measures

Abstract

Culture has a profound effect on all aspects of international marketing strategy. The purpose of this study was to examine the effect of cultural distance (i.e., Hofstede, 1980; House, Hanges, Javidan, Dorfman, & Gupta, 2004) and managerial perception on international marketing strategy adaptation, integrating internal conditions (i.e., firm and product factors) and external conditions (i.e., industry and export market factors). The authors found that the price, promotion, and product adaptation strategy were significantly related to three different measures of cultural distance. Moreover, this study demonstrated that managerial perception of cultural distance was a better predictor for international marketing strategy adaptation. On the basis of these findings, theoretical and managerial implications and future research directions are delineated.