The psychology of psychic distance: Antecedents of asymmetric perceptions

Håkanson, Lars; Ambos, Björn; Schuster, Anja; Leicht‐Deobald, Ulrich

doi:10.1016/j.jwb.2015.11.005

Cited by 53 publications

(42 citation statements)

References 69 publications

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“…This result may also indicate the need to use alternative strategies to increase foreign performance while controlling for the negative effects of psychic distance. Such strategies range from selecting different countries with a smaller psychic distance, to identifying with and partnering with firms and institutions that might help the firm cope with psychic distance in the selected country (Oparaocha, 2015), to taking advantage of exposure effects on countries with greater psychic distance (Håkanson, Ambos, Schuster, & Leicht-Deobald, 2016).…”

Section: Discussionmentioning

confidence: 99%

The evolution of inter-organisational social capital with foreign customers: Its direct and interactive effects on SMEs’ foreign performance

Presutti¹,

Boari²,

Fratocchi

2016

Journal of World Business

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Section: Discussionmentioning

confidence: 99%

The evolution of inter-organisational social capital with foreign customers: Its direct and interactive effects on SMEs’ foreign performance

Presutti¹,

Boari²,

Fratocchi

2016

Journal of World Business

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“…Furthermore, there is a lack of research investigating whether managers' perceptions of distances differ according to their decision-making context (Buckley et al, 2007;Håkanson, Ambos, Schuster, & Leicht-Deobald, 2016;Nebus & Chai, 2014). While research has advanced our understanding and the measurement of psychic distance (Baack et al, 2015;Dow, 2017), these studies do not usually tie managerial perceptions to specific choices and they do not take into account how different contexts, such as globalization or de-globalization, influence these perceptions.…”

Section: Distance As a Proxy For Decision Heuristicsmentioning

confidence: 99%

How does de‐globalization affect location decisions? A study of managerial perceptions of risk and return

Ambos

Cesinger

Eggers

et al. 2019

Global Strategy Journal

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Research Summary Our understanding of how managers take international location decisions is still scarce. Building on the microfoundations view, we explore managers' perceptions of risk and return in a discrete choice experiment with 2,618 decisions in 2013 (a globalizing world) and 2017 (a de‐globalizing world). While managerial perceptions vary over time due to economic and political changes, such as the current de‐globalization trend, decision heuristics remain remarkably stable: locations perceived as least risky offer the highest expected returns. We also find that distance is a good proxy for managerial perceptions. Investigating the microfoundations of decision‐making we show that international experience, risk‐taking propensity, and shareholder status affect heuristics. In sum, our study provides novel insights into the microfoundations of location decisions and extends the behavioral perspective on internationalization. Managerial Summary While many researchers in the field of international business and global strategy have studied internationalization, surprisingly few of them put the actual decision maker in the spotlight. This study investigates the decision heuristics of managers who are confronted with international location decisions. We show that their perceptions of risk and return in the context of a globalizing world (in 2013) and in the context of a de‐globalizing world (in 2017) vary. However, the underlying heuristic—locations that are perceived as least risky offer the highest expected returns—remains stable. Our study also indicates that distance is a good proxy for managerial decisions and that managers' international experience, risk‐taking propensity, and shareholder status affect their decision‐making patterns.

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“…Thus, strategic objectives provide a further rationalebeyond the objective and the perceptual perspectives -for distance being asymmetric (Håkanson et al, 2016;Shenkar, 2001Shenkar, , 2012Zaheer, Schomaker, & Nachum, 2012) and relative (Beugelsdijk & Mudambi, 2013;Håkanson & Ambos, 2010;Goerzen, Asmussen, & Nielsen, 2013).…”

Section: Theoretical Implicationsmentioning

confidence: 99%

“…Moreover, distance can be viewed as either symmetrical or asymmetrical (Beugelsdijk & Mudambi, 2013;Håkanson & Ambos, 2010;Håkanson et al, 2016;Shenkar, Luo, & Yeheskel, 2008, Tung & Verbeke, 2010Zaheer, Schomaker, & Nachum, 2012), as either absolute or relative (Beugelsdijk & Mudambi, 2013;Goerzen, Asmussen, & Nielsen, 2013;Håkanson & Ambos, 2010;).…”

Section: Introductionmentioning

confidence: 99%

The logic behind foreign market selection: Objective distance dimensions vs. strategic objectives and psychic distance

Magnani

Zucchella

Floriani

2018

International Business Review

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The aim of this paper is to highlight the importance of the firm's strategic objectives regarding the choice of countries for foreign expansion, complementing the existing literature on the internationalisation process. Through a multiple case study methodology, we conduct a comparative analysis of three Brazilian ventures that have internationalised in Italy, and three Italian firms that have internationalised in Brazil, seeking to investigate the firms' decisions on the selection of foreign markets. We consider jointly the objective aspects of distance, the overall perceptions of the decision-makers in relation to the differences between the domestic and (potential) host countries, and the firm's strategic objectives. This research contributes to International Business studies by revealing the role of firm-specific strategic objectives as determinants of foreign market selection, in addition to, or even on top of, the dimensions of objective distance and psychic distance.Paper type -Research paper.

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The psychology of psychic distance: Antecedents of asymmetric perceptions

Cited by 53 publications

References 69 publications

The evolution of inter-organisational social capital with foreign customers: Its direct and interactive effects on SMEs’ foreign performance

The evolution of inter-organisational social capital with foreign customers: Its direct and interactive effects on SMEs’ foreign performance

How does de‐globalization affect location decisions? A study of managerial perceptions of risk and return

The logic behind foreign market selection: Objective distance dimensions vs. strategic objectives and psychic distance

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