Inversión exterior y modo de entrada: resolviendo la paradoja de la distancia cultural

This paper aims at analyzing to which extent the role played by the cultural distance on the choice of entry mode is conditioned by third variables related to the investment. In particular, the potential existence of an interaction effect between the cultural distance and the host‘s country risk is analyzed, as well as the role of such interaction depeding upon the establishment mode used by the investing firm to carry out its investment. In order to empirically test our predictions, a database of 383 foreign direct investments made by Spanish firms is used.