The Impact of Institutional Distance on the International Diversity-Performance Relationship

We investigated the impact of institutional distance on the international diversity-performance relationship. We first discussed the international diversity-performance relationship for large multinational firms and later showed the moderation effect of regulative and normative institutional distance. Based on a sample of Fortune 500 firms, we found an inverted U-shaped curve. Regulative institutional distance has a negative moderating effect on the international diversity-performance relationship, while normative institutional distance shows a positive effect.

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