Addressing psychic distance and learning in international buyer-seller relationships: The role of firm exploration and asset specificity

2021 ◽  
Vol 56 (4) ◽  
pp. 101208
Author(s):  
Steven Y.H. Liu ◽  
Seyda Deligonul ◽  
S. Tamer Cavusgil ◽  
Jyh-Shen Chiou
Keyword(s):  
Asset Specificity ◽  
Psychic Distance

Cross-national Distance: Concepts, Measures and Relationships

2012 ◽  
Vol 13 (2) ◽  
pp. 37-59
Author(s):  
Karen Newman
Keyword(s):  
International Business ◽  
Cultural Distance ◽  
Institutional Distance ◽  
Business Practices ◽  
Psychic Distance ◽  
Business Decisions ◽  
Competing Models ◽  
Objective Indicators ◽  
Cross National

Cross-national distances between national cultures and national institutions have been studied extensively in the last two decades, particularly with respect to their effects on the conduct of international business. Yet varying levels of analysis, inconsistent definitions, and different operationalizations of cross-national distances inhibit theoretical and empirical advances. Three approaches to non-geographic cross-national distance permeate the literature: psychic distance, national cultural distance, and institutional distance. The meaning of psychic distance has become muddied by evolving operationalizations, from objective indicators to individual perceptions. National cultural distance has been confused with both psychic distance and institutional distance. Various and inconsistent institutional arrangements and business practices are used as measures of institutional distance. This article reviews overlaps, inconsistencies, and ambiguities in the definitions and measurements of psychic, national cultural and institutional distance; suggests a way to rationalize the three constructs; and offers two competing models to explain the role of all three distances in international business decisions.

The death of distance, revisited: disseminative capacity and knowledge transfer

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chansoo Park
Keyword(s):  
Knowledge Transfer ◽  
Tacit Knowledge ◽  
Explicit Knowledge ◽  
Psychic Distance ◽  
Content Type ◽  
Tacit Knowledge Transfer ◽  
The Relationship ◽  
Moderating Role ◽  
Foreign Parent

Purpose The purpose of this paper is to assess how the transfer of explicit and tacit knowledge is affected by the knowledge disseminative capacity of a foreign parent firm, with an emphasis on the moderating role of psychic distance, by developing and testing a theoretical model of international joint venture (IJV) learning. Design/methodology/approach The author tested the hypotheses with survey data collected from 199 IJVs in South Korea, estimating a structural equation model using AMOS 23.0. Findings The authors found that the capacity of the foreign parent to disseminate knowledge to the IJV has a greater impact on explicit knowledge transfer than tacit knowledge transfer. He also found that the relationship between disseminative capacity and explicit knowledge transfer is significantly moderated by psychic distance, but the relationship between disseminative capacity and tacit knowledge transfer is not. Originality/value The results are critical for IJVs and parent firms seeking to improve knowledge transfer, as they establish the importance of parent firms’ disseminative capacities and the moderating role of psychic distance in the process of both tacit and explicit knowledge transfer. This research addresses the research gap regarding disseminative capacity by providing empirical evidence.

Asset specificity and complementarity and MNE ownership strategies: The role of institutional distances

2014 ◽  
Vol 43 (5) ◽  
pp. 777-785 ◽  
Author(s):  
Yuanyuan Zhang ◽  
Weiguo Zhong ◽  
Na Wen ◽  
Dequan Jiang
Keyword(s):  
Asset Specificity

Consumers’ reactions to cross-border acquisitions

2019 ◽  
Vol 122 (2) ◽  
pp. 655-677
Author(s):  
Riccardo Resciniti ◽  
Michela Matarazzo ◽  
Gabriele Baima
Keyword(s):  
Experimental Design ◽  
Corporate Reputation ◽  
Design Methodology ◽  
Consumer Perceptions ◽  
Psychic Distance ◽  
Target Firm ◽  
Content Type ◽  
Cross Border ◽  
Acquiring Firms

Purpose The purpose of this paper is to focus on consumers’ reactions to cross-border acquisitions (CBA) by exploring the role of consumer perceptions of the psychic distance between the country of the acquirer and that of the target firm when the acquiring corporation has a good or poor reputation. Design/methodology/approach A 2×2 experimental design which manipulated psychic distance and acquirer’s corporate reputation was conducted in Italy. The study considers an Italian food target firm and compares four foreign acquiring firms with different combinations of corporate reputation (good/poor) and psychic distance to Italy (small/large). Findings The authors found that the degree of psychic distance between the countries of the acquiring and targeted firms was inversely related to Italian consumers’ intentions to repurchase the products of the post-acquisition target, and unrelated to the acquirer’s corporate reputation. Originality/value This is the first study focusing on psychic distance in the context of CBA, especially from the perspective of consumer behavior, which can help to better understand certain negative reactions toward the acquisition of a business.

scholarly journals The effects of learning orientation and marketing programme planning on export performance: Paradoxical moderating role of psychic distance

2019 ◽  
Vol 37 (5) ◽  
pp. 423-449 ◽  
Author(s):  
Shahin Assadinia ◽  
Vita Kadile ◽  
Ismail Gölgeci ◽  
Nathaniel Boso
Keyword(s):  
Host Country ◽  
Export Performance ◽  
Organisational Learning ◽  
Primary Data ◽  
Learning Orientation ◽  
Psychic Distance ◽  
Sub Saharan ◽  
Time Lagged ◽  
Programme Planning

Despite extensive research on the effect of organisational learning processes on firm performance, how and when a propensity to learn influences the export performance of small and medium-sized enterprises (SMEs) remains unclear. Using multiple-informant and time-lagged primary data from 242 SMEs in a sub-Saharan African market, this study examines the roles of marketing programme planning and host country psychic distance in linking export learning orientation to export performance. Findings from the study show that increases in both export learning orientation and marketing programme planning are associated with increases in export performance. In addition, the study finds that while increases in psychic distance weaken the effect of export learning orientation on export performance, it strengthens the effect of marketing programme planning on export performance. These findings draw attention to the idea that cognitive distance between home and host country markets may play a paradoxical role in explaining when organisational learning activities may help or hurt exporting SMEs.

The Role of Innovation in the Relation Between Psychic Distance and Organizational Performance

2017 ◽  
Vol 23 (1) ◽  
pp. 394-398
Author(s):  
Nomahaza Mahadi ◽  
Jihad Mohammad ◽  
Azizul Yadi Yaakop ◽  
Nur Rahida Rahman
Keyword(s):  
Organizational Performance ◽  
Psychic Distance

scholarly journals An old model of social class? Job characteristics and the NS-SEC schema

2016 ◽  
Vol 31 (1) ◽  
pp. 153-165 ◽  
Author(s):  
Mark Williams
Keyword(s):  
Social Class ◽  
Job Characteristics ◽  
Asset Specificity ◽  
Future Research ◽  
Employment Relations ◽  
Time Dynamics ◽  
Key Drivers ◽  
The Relationship ◽  
Promising Avenue

This article explores the relationship between the job characteristics underlying the Goldthorpe model of social class (work monitoring difficulty and human asset specificity) and those underlying theories of technological change (routine and analytical tasks) highlighted as key drivers for growing inequality. Analysis of the 2012 British Skills and Employment Survey demonstrates monitoring difficulty and asset specificity predict National Statistics Socio-Economic Classification (NS-SEC) membership and employment relations in ways expected by the Goldthorpe model, but the role of asset specificity is partially confounded by analytical tasks. It concludes that while the Goldthorpe model continues to provide a useful descriptive tool of inequality-producing processes and employment relations in the labour market, examining underlying job characteristics directly is a promising avenue for future research in understanding over time dynamics in the evolution of occupational inequalities.

Sign in / Sign up

Export Citation Format

Share Document