The Impact of National Cultural Distance on Foreign Direct Investment in Iraq

Ghassan Faraj Hanna; Mohamad Saleh Hammoud

The Impact of National Cultural Distance on Foreign Direct Investment in Iraq

Ghassan Faraj Hanna * § Ph.D.

Contact

Mohamad Saleh Hammoud

Contact

§ DeVry University

The Impact of National Cultural Distance on Foreign Direct Investment in Iraq

Article Fingerprint

ReserarchID

MBR37Z4F

The Impact of National Cultural Distance on Foreign Direct Investment in Iraq Banner

Key Research Insights

Synthesized scholarly intelligence & interactive research assistant

Abstract

Political and security risks coupled with cultural distance have profound effects on foreign investments by multi-national enterprises. A qualitative case study was conducted to investigate the impact of cultural distance on foreign direct investment in the heterogeneous and post-conflict country of Iraq. Data were collected from interviews with 15 business and government subject matter experts, and from a review of publically available documents. The findings showed majority of foreign investment was from Arab countries and Iraq’s neighbors. There was limited investment by Western firms in Iraq, outside its oil and gas sector, and those taking place were mainly in the housing construction market. Kurdistan region attracted significant investment activities. Wholly-owned and joint ventures characterized mode of entry by MNEs. Substantial number of investment licenses issued did not materialize due to hurdles brought about by government agencies. Statistical data regarding the real dollar amount of foreign investment in Iraq are still lacking. The findings showed an important role played by Iraqi expatriates as facilitators of foreign investment. Implications to other post conflict and heterogeneous countries are presented and recommendations made.

References

30 Cites in Article

Reference Format

I Alvarez,R Marin (2009). GET /dgs HTTP/1.1 Host: www.WebComposition.net.
K Dobrai,F Farkas,Z Karoliny,J Poor (2012). Knowledge transfer in multinational corporations -Evidence from Hungry.
Rian Drogendijk,Arjen Slangen (2006). Hofstede, Schwartz, or managerial perceptions? The effects of different cultural distance measures on establishment mode choices by multinational enterprises.
J Dunning (2001). The eclectic (OLI) paradigm on international production: Past, present and future.
C Fiberg,G Loven (2007). Entry mode strategy and the effect of national culture on foreign subsidiary performance.
G Hanna,M Hammoud,J Russo-Converso (2014). Foreign direct investment in post conflict countries: The case of Iraq's oil and electricity sectors.
E Helpman (2006). Trade, FDI, and the organization of firms.
Geert Hofstede (1983). The Cultural Relativity of Organizational Practices and Theories.
Song-Hua Hu,Hai-Yan Ma,Guang-Tao Zen (2012). The Influence of Host-Country’s Enviroments on the FDI Entry Mode Choice of Chinese Companies.
V Joshi,S Ghosal (2009). Impact of foreign direct investment on employment in Oman.
B Keillor,W Hauser,A Griffin (2009). The relationship between political risk, national culture and foreign direct investment as market entry strategy: Perspectives from U.S. firms.
W Kim,Peter Hwang (1992). Global Strategy and Multinationals' Entry Mode Choice.
(2014). List of licensed projects in Kurdistan region.
Todd Landman (2008). Issues and Methods in Comparative Politics.
M Mason (2010). Sample size and saturation in Ph. D studies using qualitative interviews.
J Maxwell (1998). Handbook of applied social research methods.
S Merriam (1988). Case study research in education.
L Nachum,J Rolle (1998). The National Origin of the Ownership Advantages of Firms.
S O'donnell (2000). Managing foreign subsidiaries: agents of headquarters, or an interdependent network?.
S Patrick,U Felicitas,G Albaum (2005). A comparative study of the management styles of marketing managers in Australia and the People's Republic of China.
S Poelhekke,F Van Der Ploeg (2010). Do natural resources attract FDI? Evidence from nonstationary sector level Data.
Malgorzata Rozkwitalska (2013). Effective cross-cultural relationships in multinational corporations. Foreign subsidiaries' viewpoint.
M Sandelowski (1995). Sample size in qualitative research.
S Schwartz (1999). A theory of cultural values and some implications for work.
A Teixeira,M Grande (2012). Entry mode choices of multinational companies (MNCs) and host countries' corruption: A review.
(2011). Overview.
Laszlo Tihanyi,David Griffith,Craig Russell (2005). The effect of cultural distance on entry mode choice, international diversification, and MNE performance: a meta-analysis.
N Turner,O Aginam,V Popovski (2008). Postconflict countries and foreign investment.
Sheng Wang,Tony Tong,Guoli Chen,Hyondong Kim (2009). Expatriate Utilization and Foreign Direct Investment Performance: The Mediating Role of Knowledge Transfer†.
D Zvirgzde,D Schiller,J Diez (2013). http://www.innspub.net/wp-content/uploads/2013/12/IJB-V4No1-p158-166.pdf.

Download References

Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Ghassan Faraj Hanna, Mohamad Saleh Hammoud. 2014. "The Impact of National Cultural Distance on Foreign Direct Investment in Iraq". Global Journal of Management and Business Research - A: Administration & Management GJMBR-A Volume 14 (GJMBR Volume 14 Issue A4).

More Citation Formats

Select Citation Style:

Download Citation

GJMBR Volume 14 Issue A4

Explore Journals Explore Volume Read This Issue

Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords

cultural distance Decision making foreign direct investment international business iraq multinational enterprises post-conflict country

Classification

GJMBR-A Classification JEL Code: E29

P45

Submission ReceivedDecember 7, 2013
Peer Review Double Blind
Handling Editor
Accepted January 4, 2014
Published January 15, 2014

Version of record

v1.2

Issue date

June 6, 2014

Language

English

Experiance in AR

Explore published articles in an immersive Augmented Reality environment. Our platform converts research papers into interactive 3D books, allowing readers to view and interact with content using AR and VR compatible devices.

View in VR

Read in 3D

Your published article is automatically converted into a realistic 3D book. Flip through pages and read research papers in a more engaging and interactive format.

View in 3D

Article Matrices

Total Score: 179

Country: United States

Subject: Global Journal of Management and Business Research

Authors: Ghassan Faraj Hanna, Mohamad Saleh Hammoud (PhD/Dr. count: 0)

View Count (all-time): 367

Total Views (Real + Logic): 1912

Total Downloads (simulated): 80

Publish Date: 2014 01, Wed

Monthly Totals (Real + Logic):

Month 1: 59 views
Month 2: 32 views
Month 3: 62 views
Month 4: 58 views
Month 5: 42 views
Month 6: 47 views
Month 7: 50 views
Month 8: 22 views
Month 9: 51 views
Month 10: 23 views
Month 11: 55 views
Month 12: 13 views
Month 13: 20 views
Month 14: 39 views
Month 15: 43 views
Month 16: 19 views
Month 17: 19 views
Month 18: 27 views
Month 19: 33 views
Month 20: 21 views
Month 21: 25 views
Month 22: 19 views
Month 23: 21 views
Month 24: 28 views
Month 25: 27 views
Month 26: 33 views
Month 27: 26 views
Month 28: 26 views
Month 29: 37 views
Month 30: 26 views
Month 31: 35 views
Month 32: 20 views
Month 33: 35 views
Month 34: 40 views
Month 35: 43 views
Month 36: 25 views
Month 37: 41 views
Month 38: 46 views
Month 39: 23 views
Month 40: 27 views
Month 41: 35 views
Month 42: 18 views
Month 43: 22 views
Month 44: 15 views
Month 45: 28 views
Month 46: 23 views
Month 47: 24 views
Month 48: 30 views
Month 49: 21 views
Month 50: 31 views
Month 51: 20 views
Month 52: 39 views
Month 53: 16 views
Month 54: 32 views
Month 55: 38 views
Month 56: 36 views
Month 57: 21 views
Month 58: 30 views
Month 59: 40 views
Month 60: 37 views
Month 61: 30 views
Month 62: 14 views
Month 63: 24 views
Month 64: 19 views
Month 65: 22 views
Month 66: 31 views
Month 67: 26 views
Month 68: 48 views
Month 69: 23 views
Month 70: 32 views
Month 71: 38 views
Month 72: 14 views
Month 73: 17 views
Month 74: 13 views
Month 75: 24 views
Month 76: 37 views
Month 77: 34 views
Month 78: 32 views
Month 79: 22 views
Month 80: 22 views
Month 81: 36 views
Month 82: 38 views
Month 83: 14 views
Month 84: 38 views
Month 85: 29 views
Month 86: 22 views
Month 87: 39 views
Month 88: 33 views
Month 89: 26 views
Month 90: 32 views
Month 91: 32 views
Month 92: 21 views
Month 93: 15 views
Month 94: 40 views
Month 95: 23 views
Month 96: 18 views
Month 97: 19 views
Month 98: 35 views
Month 99: 36 views
Month 100: 34 views
Month 101: 22 views
Month 102: 28 views
Month 103: 25 views
Month 104: 19 views
Month 105: 33 views
Month 106: 44 views
Month 107: 23 views
Month 108: 27 views
Month 109: 38 views
Month 110: 29 views
Month 111: 15 views
Month 112: 26 views
Month 113: 28 views
Month 114: 26 views
Month 115: 45 views
Month 116: 36 views
Month 117: 44 views
Month 118: 34 views
Month 119: 22 views
Month 120: 49 views
Month 121: 23 views
Month 122: 33 views
Month 123: 39 views
Month 124: 28 views
Month 125: 35 views
Month 126: 18 views
Month 127: 14 views
Month 128: 43 views
Month 129: 26 views
Month 130: 24 views
Month 131: 28 views
Month 132: 34 views
Month 133: 31 views
Month 134: 40 views
Month 135: 37 views
Month 136: 45 views
Month 137: 31 views
Month 138: 40 views
Month 139: 21 views
Month 140: 45 views
Month 141: 41 views
Month 142: 55 views
Month 143: 45 views
Month 144: 69 views
Month 145: 39 views
Month 146: 34 views
Month 147: 12 views
Month 148: 39 views
Month 149: 29 views
Month 150: 46 views
Month 151: 64 views
Month 152: 37 views
Month 153: 31 views

Total Views: 1.9K

Total Downloads: 80

All Trends