Cultural distance is a function of differences in values and communication styles that are rooted in culture (demographic OR organizational). Distance is created when individuals or groups perceive that their values and communication styles differ from others.

In The Hidden Dimension (1966), American anthropologist and cross-cultural researcher Edward T. Hall described the culturally specific temporal and spatial dimensions that surround us, including the physical distances people maintain in different contexts, many of which perdure to this day. All of Hall's works make great and continuingly relevant reading.

Reference

Hall, E.T. (1966). The hidden dimension. Garden City, NY: Doubleday & Co.

Thank you for your replies! Of course, I know of Hall’s and Hofstede’s work, among others, but I’m looking for more recent views on the topic… Thanks!

You will likely find the (recent) work of people such as Oded Shenkar, Sjoerd Beugelsdijk, and Douglas Dow very useful. A good starting point might be: Beugelsdijk, S., T. Kostova, M. van Essen. V. Kunst and E. Spadafora (2018) Cultural distance and the process of firm internationalization, Journal of Management 44(1): 89-130.

In cross-country analysis, introduction of religion may introduce cultural distance. For example, different countries use different material in production based on their religion belief.