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Multilevel psychic distance and its impact on SME internationalization
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies. Malardalen Univ, Sch Business Soc & Engn EST, Vasteras, Sweden.
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies. Gothenburg Univ, Gothenburg, Sweden; Univ Eastern Finland, Joensuu, Finland. (International Business)
2019 (English)In: International Business Review, ISSN 0969-5931, E-ISSN 1873-6149, Vol. 28, no 4, p. 754-765Article in journal (Refereed) Published
Abstract [en]

We expand the conceptualization of psychic distance and use a multilevel framework by studying it as a founder's psychic distance in the pre-entry phase of entering a specific foreign market, and the SMEs (firm) psychic distance in the post-entry phase of entering that specific foreign market. Based on qualitative research involving six SMEs' with 18 internationalization events, we found that psychic distance at country and business levels causes difficulties for SMEs in the post-entry phase because of their lack of knowledge. Bridge-makers possessing knowledge about target markets help SMEs to overcome psychic distance challenges. Trust in the relationship with the bridge-maker is an important ingredient to gain knowledge that alleviates the SMEs' psychic distance challenges. Finally, we go beyond country-business levels of psychic distance by showing that psychic distance also matters at bridge-maker level. This relates to their lack of knowledge about the target market and SMEs' routines.

Place, publisher, year, edition, pages
2019. Vol. 28, no 4, p. 754-765
National Category
Business Administration
Identifiers
URN: urn:nbn:se:uu:diva-386540DOI: 10.1016/j.ibusrev.2019.03.001ISI: 000472706200011OAI: oai:DiVA.org:uu-386540DiVA, id: diva2:1327899
Available from: 2019-06-20 Created: 2019-06-20 Last updated: 2019-08-16Bibliographically approved

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Safari, Aswo

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