Impact of psychic distance to the internationalization behavior of knowledge‐intensive SMEs

Ojala, Arto; Tyrväinen, Pasi

doi:10.1108/09555340910956649

Cited by 35 publications

(35 citation statements)

References 47 publications

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“…It might be especially demanding for family SMEs who are accustomed to duplicating their domestic enterprise culture in the target market (Tsang 2001(Tsang , 2002. Altogether, the psychic distance view (Child et al, 2002;Ojala & Tyrväinen, 2009;Sousa & Bradley, 2006) related to managers perceptions of psychic distance seemed to describe well the different aspects in the FME and operations of the case firms.…”

Section: Discussionmentioning

confidence: 99%

“…As most of the studies have investigated psychic distance in the general pattern of SME internationalization, studies by Ojala (2008Ojala ( , 2009) and Ojala and Tyrväinen (2009) investigated to the impact of psychic distance when SMEs are entering a certain target country. The findings in these studies indicate that although psychic distance created several challenges to Finnish software SMEs entering Japan, they were able to overcome these obstacles by utilizing different types of network relationships (Ojala, 2009) and by recruiting employees with relevant cultural and linguistic knowledge (Ojala, 2008;Ojala & Tyrväinen, 2009). The importance of managers' foreign language skills in SMEs internationalization is also indicated in the study of Knowles, Mughan and Lloyd-Reason (2006).…”

Section: Internationalization Of Smesmentioning

confidence: 99%

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Internationalization pathways of family SMEs: psychic distance as a focal point

Kontinen

Ojala

2010

Jrnl of Small Bus Ente Dev

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Purpose -The purpose of this paper is to investigate how psychic distance affects the internationalization process, foreign market entry (FME), and entry mode choice of Finnish small and medium-sized family enterprises (family SMEs) operating in France. Design/methodology/approach -The paper reports findings from an in-depth case study covering four Finnish manufacturing family SMEs operating in the French market. The data were analyzed using the Uppsala model and distance creating and distance-bridging factors encountered in the FME to France. Findings -The findings reveal that the family SMEs mainly followed a sequential process and favored indirect entry modes before entering the French market. The French market was psychically distant, but the case firms were able to overcome the distance by using different distance-bridging factors. Based on the findings, it can be argued that psychic distance has an especially important role in the internationalization and the FME of family SMEs, mainly because of their general cautiousness caused by family presence. Research limitations/implications -Although the case study method made it possible to acquire detailed knowledge about the firms' internationalization, the findings can be generalized only to some extent. Practical implications -Managers of family SMEs and family members should be provided with the capacity to overcome distance-creating factors, they might encounter in their FME. The decision to internationalize is a strategic change that will most probably change the historical harmony of the firm. Originality/value -Prior research has mainly focused only on general internationalization pathways of family SMEs. In addition and contrast to the previous studies, this paper investigates the role of perceived psychic distance in family SMEs' FME and entry mode choice in a certain target market.

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Section: Discussionmentioning

confidence: 99%

Section: Internationalization Of Smesmentioning

confidence: 99%

Internationalization pathways of family SMEs: psychic distance as a focal point

Kontinen

Ojala

2010

Jrnl of Small Bus Ente Dev

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“…Wiklund and Shepherd (2002) proposed participation in business networks offers access to new knowledge . This perspective is shared by Chen, Duan, Edwards, and Lehaney (2006), Niehaves (20 1 0), Mohannak (2007), Moensted (20 1 0), and Ojala and Tyrvained (2009). They posited that the creation of new knowledge from collaborative activities is critical in ensuring an adequate response to changing external environments.…”

mentioning

confidence: 97%

Culture and Innovation in Peru from a Management Perspective

Scott

Chaston²

2012

CENTRUM Católica's Working Paper Series

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Political stability, macro-economic caution, and the aggress ive pursuit of free trade have enabled Peru to emerge as one of the fastest growing economies in Latin America. This economic expansion has created heightened interest in the evolution of corporate culture and its influence on firm performance. This paper examines organizational performance in relation to the influence of cultural values on innovation by means of a survey of upper level managers . Analysis of the survey results indicates that there was a positive relation between innovation and power distance and uncertainty. Survey findings show no relationship between innovation and individualism nor innovation and masculinity. Practical implications indicate that the cultural values of declining power distance and lower aversion to uncertainty may influence the effective implementation of an innovation strategy in firms operating in Peru.

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“…Cultural differences also caused problems for the performers, from macro level psychic distance issues to micro level operational factors (Ojala and Tyrvainen 2009): …it is usually only people who have had some kind of international experience already who think about cultural differences. People who have lived in one cultural environment their entire lives tend to take the ways of their own native culture for granted.…”

Section: Overcoming Internal and External Barriers To Internationalismentioning

confidence: 99%

Internationalisation of Korean performing arts

Fillis

Lee

2011

European Journal of Marketing

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Abstract:Purpose -Cross disciplinary research is carried out on the internationalisation process and experiences of Korean performing arts companies. Factors investigated include cultural issues, production values, the roles of entrepreneurial marketing and creativity and barriers to performing arts internationalisation.Design/methodology/approach -A case study approach is used to investigate the performance and internationalisation activities of five Korean dance companies which participated in the Edinburgh Festival Fringe.Findings -The exporting of Korean cultural products contributes to the perception of Korea. Small dance companies with a tolerance of risk-taking, and with entrepreneurial marketing competencies can minimise the effect of problems experienced during internationalisation of their productions. Research limitations/implications -The case study approach uncovers data which would not have been unveiled through questionnaire analysis alone. The findings can also contribute to future large scale surveys of the arts. Practical implications -The issues identified are also relevant for other forms of internationalising artistic productions. Internationalisation strategy constructed from artistic and entrepreneurial marketing perspectives results in competitive advantages for the arts organisation.Originality/value -This research promotes a cross-disciplinary approach to arts marketing in general by encouraging the interrogation of fields such as entrepreneurship, small business marketing, arts marketing and internationalisation.

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Impact of psychic distance to the internationalization behavior of knowledge‐intensive SMEs

Cited by 35 publications

References 47 publications

Internationalization pathways of family SMEs: psychic distance as a focal point

Internationalization pathways of family SMEs: psychic distance as a focal point

Culture and Innovation in Peru from a Management Perspective

Internationalisation of Korean performing arts

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