Understanding the Formation of Psychic Distance Perceptions
Journal
Academy of Management Proceedings
ISSN
0065-0668
ISSN-Digital
2151-6561
Type
conference paper
Date Issued
2018-07-09
Abstract
This study investigates individual managers’ formation of psychic distance perceptions to foreign countries. Adopting a social psychological perspective, we propose three social-cognitive mechanisms - social comparison, mere exposure, and social learning - to help explain why and how country- and individual-level characteristics affect the formation of such perceptions. Based on an international survey of 1,591 managers located in 25 countries, we find that country-specific international experience, formal education, and a match between a managers’ first language and the language of the target country reduce psychic distance perceptions. Surprisingly, and in contrast to conventional wisdom, managers’ international and overall work experiences do not seem to have any effect on their distance perceptions. However, relative to country-level factors, individual-level antecedents seem to have rather limited explanatory power as predictors of overall psychic distance perceptions, lending support to the widely-employed practice of operationalizing psychic distances through country level indicators. In addition to these empirical findings, the study contributes by providing a theoretical social psychological framework for the understanding of how psychic distance perceptions are formed.
Language
English
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Academy of Management
Start page
14376
Subject(s)
Eprints ID
256247