Cultural distance and psychic distance are two concepts that are widely used in the international business literature. A large number of studies use both concepts interchangeably with no clear distinction between them. The authors propose a new model to assess cultural distance and psychic distance separately. Through the use of survey data of more than 300 managers, this article shows that both concepts are conceptually different and that psychic distance is determined by cultural distance and the individual values of the managers.
The presumed effect of export assistance programmes and distributor support on the export performance of SMEs, though intuitively rational, has not been tested or validated in any systematic fashion in the export literature. To address this issue the authors develop a new model, which integrates these two constructs as critical variables affecting export performance. Confirmatory factor analysis and structural equation modeling were used to test hypotheses. The research findings, which are based on a survey of 287 senior managers responsible for international markets, suggest that export assistance programmes and distributor support are significant determinants of export performance. Implications of these findings along with the limitations of the study are discussed.
Purpose -The purpose of this paper is to identify the key factors that influence price adaptation in export markets. Design/methodology/approach -The conceptual model was tested empirically using data collected by mail questionnaire in a sample survey of 140 firms. The results were analysed using structural equation modelling and the method of estimation was maximum likelihood (ML). Various statistical tests show that the results were reliable and valid. Findings -The results reported here suggest that while controlling for the size of the firm, the degree of price adaptation is strongly influenced and conditioned by the degree of product, promotion, and distribution adaptation as well as by the differences that exist between the home and the foreign market. Originality/value -Despite calls for research on the adaptation of pricing in export markets little headway has been made in understanding the issue in the literature. This study adds to the limited empirical research work done in this area. Although past research points to a link between product adaptation and price adaptation and between distribution adaptation and price adaptation, empirical research that includes simultaneously the link between the three elements of the marketing mix (product, promotion, and distribution adaptation) and price adaptation is largely missing in the literature. These relationships have been tested in this paper and found to be relevant to the understanding of pricing in international markets.
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