Why we should stop using the Kogut-Singh-Index

Konara, Palitha and Mohr, Alexander (2019) Why we should stop using the Kogut-Singh-Index. Management International Review, 59 (3). pp. 335-354. ISSN 0938-8249

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Abstract

The Kogut and Singh (1988) index is the most widely used construct to measure cultural distance in international business and management research. We show that this index is incorrectly specified and captures the squared cultural distance. This inaccuracy is problematic because it means that the empirical findings on the effects of cultural distance presented in different strands of international business research are likely to be misleading. We specify the correct form of the distance measure based on the Euclidean distance formula and demonstrate the implications of using the incorrectly specified Kogut and Singh (1988) index.

Item Type: Article
Additional Information: Open Access funding provided by Vienna University of Economics and Business (WU).
Keywords: Cultural distance, Kogut-Singh Index, Euclidian distance
Divisions: Departments > Welthandel > International Business > Mohr
Version of the Document: Published
Depositing User: Gertraud Novotny
Date Deposited: 25 Apr 2019 08:04
Last Modified: 26 Sep 2019 17:19
FIDES Link: https://bach.wu.ac.at/d/research/results/90314/
URI: https://epub.wu.ac.at/id/eprint/6939

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