Examining knowledge gap and Psychic Distance Paradox interdependence

Abstract

Purpose – The purpose of this paper is to examine the relationship between the Knowledge Gap (KG) and Psychic Distance Paradox and to explain the three dominant factors; experiential knowledge, information and learning myopia. Design/methodology/approach – The paper uses an inductive multiple case study methodological approach. Findings – This research found that the KG has an interdependent relationship with the Psychic Distance Paradox; however, this interdependence does not exist in isolation; rather there is a distinct “time-continuum” nexus running through and enveloping these two theoretical frameworks and the three factors of experiential knowledge, information and learning myopia. Research limitations/implications – This paper provides a deeper understanding to the existing body of knowledge on the relationship between the KG and Psychic Distance Paradox and the emerging factors. Originality/value – This study is the first to examine the interdependence between the three factors of experiential knowledge, information and learning myopia and KG and Psychic Distance Paradox. This examination provides new ideas to practitioners and researchers relating to the advancement of export process in neighbour countries.

The determinants of export performance: perceived psychic distance and its antecedents

“…Çütçü (2013) analyzes the importance of personnel in the growth of exporting firms, and Çelik and Karadal (2007) the role of trained personnel in operational efficiency. Mandrinos and Mahdi (2016) examine the relationship between the information gap and the psychic distance paradox. Martínez Villara (2021) examined that as the level of experience and learning increases, the company selects more distant in psychic terms.…”

A general theory of de‐internationalization

“…The theory of psychic distance is often used to explain the "how" behind the "what" that prevents internationalization from happening (Johanson & Vahlne, 2009;Mandrinos & Mahdi, 2016). In essence, psychic distance refers to the distance between two points that is derived based on the perception and understanding of differences between those two points (Evans et al, 2000(Evans et al, , 2008.…”

Theoretical Interplay of Resource Dependence and Institutional Theory in Context Bound Organisations

“…The various ways that institutional settings and organisations are harmonised to potential changes allow the organisations to balance this complex logic to fit in within the particularities of specific situations (Lounsbury, 2007;Miller and Loess, 2002). Organisations show heterogeneity in the face of small and medium sizes which are inferior in comparison to large organisations (Buckley et al, 2009;Leonidou, 2004) for in order to show legitimacy; faced with institutional pressures, they adopt specific practices to facilitate opportunities and boost exports (Gong and Janssen, 2012; Mandrinos and Nik Mahdi, 2016). However, they may not implement these practices internally as organisations may adopt practices very much aligned to their own level of independence (Boxenbaum and Jonsson, 2008;Meyer and Rowan, 1977).…”

“…Finally, a body of writing on export literature suggests the presence of specific constituents that result in various conditions for organisations. Nevertheless few of these conditions have been empirically investigated within the field of context bound organisations FMCG export development (Francis, 2006;Mandrinos and Nik Mahdi, 2016;Sakellariou et al, 2014). Thus, previous empirical research fails to explore a theoretical background towards the investigation of context bound business practices.…”