Cultural distance
Cultural distance
Cultural distances between 78 home and 78 host countries (6084 country pairs) calculated using the Kogut & Singh (1988) index based on Hofstede’s (1980, 1988, 2010) cultural dimensions scores. This dataset contains 6084 observations across 5 variables:
country_pair: character string uniting the origin and the destination.
origin: character string indicating the first country (ISO3 code) of the country pair.
destination: character string indicating the second country (ISO3 code) of the country pair.
CDks4: Numeric. Cultural distance calculated between the two countries forming each country pair based on the formula indicated in Kogut & Singh (1988) applied to the first four Hofstede (1980) cultural dimensions: Uncertainty avoidance, Masculinity, Power distance, and Individualism.
CDks6: Numeric. Cultural distance calculated between the two countries forming each country pair based on the formula indicated in Kogut & Singh (1988) applied to all six of Hofstede (1980; & Bond, 1988; & Hofstede & Minkov, 2010) cultural dimensions: Uncertainty avoidance, Masculinity, Power distance, Individualism, Long-term orientation, and Indulgence versus restraint.
The formula indicated by Bruce Kogut and Harbir Singh in their 1988 article titled “The Effect of National Culture on Entry Mode” and published in the Journal of International Business Studies is as follows: \[ CD_{jk} = \sum_{i = 1}^{4}((I_{ij} - I_{ik})^2/V_i)/4 \] where \(I_{ij}\) stands for the index for the \(i^{th}\) cultural dimension and \(j^{th}\) country, \(V_i\) is the variance of the index of the \(i^{th}\) dimension, \(k\) indicates the home country (in their study: the United States), and \(CD_{jk}\) is the cultural difference of the host country from the home country.