The influence of home country culture on firm performance Do Born Globals differ from traditional MNEs?
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2025-06-23
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en
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Culture is an important factor in shaping international business performance. This Master’s thesis investigates how home country culture influences the performance of internationally operating firms, with a particular emphasis on the differences in outcome between Born Globals (BGs) and traditional Multinational Enterprises (MNEs). Drawing on Hofstede’s cultural framework—specifically the dimensions of masculinity, long-term orientation, and indulgence—and firm-level data sourced from the ORBIS and LSEG databases, this study employs a panel data regression with random effects to measure the relationship between home country culture and performance outcomes, as measured by the firm’s Return on Assets.
The results indicate that indulgence has a significant negative impact on MNE performance, while masculinity and long-term orientation exhibit no significant effects. Furthermore, the moderation of BGs on the direct relationship between culture and MNE performance shows no significance either. These results indicate that home country culture impacts distinct types of international businesses in more similar ways than theorized, regardless of their diverging internationalization strategies. The study contributes to a broader understanding of the phenomenon of Born Globals and offers practical guidance for managers seeking to align their strategies to their home country cultural contexts.
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Faculteit der Managementwetenschappen