Foundations of Business (MindTap Course List)
Foundations of Business (MindTap Course List)
6th Edition
ISBN: 9781337386920
Author: William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher: Cengage Learning
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characteristics in the 6 Hofstede dimensions to the 6 K-S dimensions that are similar also tell me the characteristics that are unique to each model.

 
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Examining the effect of national culture on the choice of entry mode, Kogut and Singh introduced a composite index to measure the extent to which the country of the investing firm and the country of entry differs on the Hofstede’s four national cultural dimensions of power distance, uncertainty avoidance, individualism, and masculinity. Hence it is clear that the two models agree on 4 out of 6 dimensions of Hofstede.

The first cultural distance measure to operationalize Hofstede’s dimensions was the Kogut and Singh index. It has since been reused and adapted to many other studies. They constructed the following index.

𝐶𝐷𝑗 = ∑ {(𝐼𝑖𝑗 − 𝐼𝑖𝑢) 2 4 𝑖=1 /𝑉𝑖 }/4

 

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