The Antecedents of Psychic Distance

Item Type Journal paper

This study investigates the antecedents of psychic distance. Building on original data in 25 of the world's largest economies, we investigate potential drivers of perceived psychic distances to foreign countries. The results show these perceptions to be influenced by a range of cultural, geographic, political and economic factors. Among these, absolute geographic distance accounts for the largest share of the explained variance, suggesting that physical distance should be given a more prominent role when it comes to empirically investigating international business decisions for which psychic distance perceptions may be important. The findings also suggest that, used in isolation, ‘cultural distance' - as measured by the so called Kogut and Singh index - is a poor predictor of such perceptions.

Authors Hakanson, Lars & Ambos, Björn
Journal or Publication Title Journal of International Management.
Language English
Keywords Cultural distance; Geographic distance; Institutional distance; Cross-cultural research/measurement issues; Psychic distance
Subjects business studies
HSG Classification contribution to scientific community
Refereed Yes
Date September 2010
Publisher Elsevier
Place of Publication Amsterdam
Volume 16
Number 3
Page Range 195-210
Number of Pages 16
ISSN 1075-4253
ISSN-Digital 1873-0620
Publisher DOI 10.1016/j.intman.2010.06.001
Depositing User Anja Schuster
Date Deposited 21 Nov 2012 22:04
Last Modified 23 Aug 2016 11:15


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Hakanson, Lars & Ambos, Björn (2010) The Antecedents of Psychic Distance. Journal of International Management., 16 (3). 195-210. ISSN 1075-4253

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