Egalitarianism, Cultural Distance, and Foreign Direct Investment: A New Approach

This study addresses an apparent impasse in the research on organizations’ responses to cultural distance. We posit that cross-country differences in egalitarianism—a cultural orientation manifested in intolerance for abuses of market and political power and support for protection of less powerful actors—affect multinational firms’ choices of destinations for foreign direct investment (FDI). Using historically motivated instrumental variables,...