The Path of Least Resistance: An Advanced Index Alternative to the Cultural Distance Index for Measuring International Expansion

In response to a call for more advanced and more inclusive models for measuring difficulty of international expansion, the resistance index (RI) was created and is advanced in this paper. The RI includes several factors that contribute (detract) to the success (failure) of firms regarding cross border expansion. The RI features variables that represent country specific advantages (CSA), firm specific advantages (FSA), and government specific advantages (GSA). These three areas are represented by a diverse set of data obtained from such widely recognized agencies as the World Bank and Thomson Reuters. Taking data from different sources, may render better predictability for firms than using the popular cultural distance index. Therefore, it is proposed that the RI may be a more relevant tool for firms to use when they are considering international expansion into a particular country, or for researchers to employ in undertaking success or failure in international expansion.