Business and Cultural Differences Between Origin and Destination Countries in Export Performance

Abstract

In recent years, the survival of international business organizations has been closely tied to a successful export process. In this regard, one of the most prominent operational steps is to rigorously consider to the cultural structure of the destination country to enter the competitive markets. The main purpose of this study is to investigate business and cultural diversity between origin and destination countries in export performance. The research method is a practical correlative descriptive survey and has been performed through a case study. The target statistical population has been amongst four Iranian household appliances companies (Electro Steel, Pars Khazar, Emersun and Barfab) that have been acting in export markets for years. The hypotheses have been investigating whether there is a significant relation between business differences, cultural differences, human capital and export performance or not. They have been tested by the structural equation modelling through SPSS and Smart PLS. A standard questionnaire with 27 questions has been used for collecting data whose validity and reliability has been confirmed. The results, based on a survey of 126 executive and export managers and board members, illustrate that accomplishment of organizational export goals is strongly affected by cultural diversity and commercial differences between export origin and import destination and also human capital separately. Likewise, it has been concluded that there is a meaningful direct relation between human capital and cultural and business differences. In addition, the role of mediator human capital among cultural and business differences and export performance of companies is not accepted.