Understanding the formation of psychic distance perceptions: Are country-level or individual-level factors more important?

Ambos, Björn; Leicht‐Deobald, Ulrich; Leinemann, Alexander

doi:10.1016/j.ibusrev.2019.01.003

“…Our findings also identified that the key PD challenges during the pre-internationalization phase were broader country and business-level issues. This is consistent with the widely employed macro-level operationalization of PD at country (Ambos, Leicht-Deobald and Leinemann, 2019) and business levels (Child, Ng and Wong, 2002;Safari and Chetty, 2019). Our analyses suggest that directors' diverse network relationships and backgrounds help address such challenges.…”

Section: Discussionsupporting

confidence: 87%

Mitigating Psychic Distance and Enhancing Internationalization of Fintech SMEs from Emerging Markets: The Role of Board of Directors

Puthusserry

¹

,

Khan

²

,

Nair

³

et al. 2021

British J of Management

View full text Add to dashboard Cite

Prior research suggests that corporate boards and directors play important roles in firm strategy and performance. In this paper, we examine an important yet under-explored avenue and focus on their role in overcoming the multilevel psychic distance (PD) faced by internationalizing small and medium-sized enterprises (SMEs) originating from an emerging market. Analysing Indian Fintech SMEs, using multiple case studies, our findings reveal that boards contribute important network-level resources and knowledge about foreign markets, which in turn assists internationalizing SMEs in mitigating PD. We demonstrate that the human and social capital of boards play important, yet distinctly different, roles in mitigating PD at pre-and post-internationalization phases. At the preinternationalization phase, directors' prior international and industry experience, as well as board interlocks and prior connections, are most valuable, whereas at the post-entry phase, transnational boards, and those with stronger trust-based personal relationships (i.e. greater depth of social capital, facilitate faster experiential learning. Taken together, our findings contribute novel insights into the mechanisms through which boards affect the outcomes of firms operating, and originating from, extreme institutional environments. Further, we draw implications for research and practice.

show abstract

“…Psychic distance comprises both the individual perceptions of distance of a given individual, shaped by the macro-level factors that form those perceptions ( Dow & Karunaratna, 2006 ; Brewer, 2007 ; Dow & Ferencikova, 2010 ; Ambos, Leicht-Deobald & Leinemann, 2019 ; Bhowmick, 2019 ). We follow one of the most influential frameworks of psychic distance proposed in the literature, the one by Dow & Karunaratna (2006) published in the leading International Business journal (Journal of International Business Studies), in which six different dimensions (called stimuli) are proposed.…”

Section: Literature Reviewmentioning

confidence: 99%

Advanced feature selection to study the internationalization strategy of enterprises

Herrero

¹

,

Jiménez

²

,

Delgado

³

2021

PeerJ Computer Science

View full text Add to dashboard Cite

Firms face an increasingly complex economic and financial environment in which the access to international networks and markets is crucial. To be successful, companies need to understand the role of internationalization determinants such as bilateral psychic distance, experience, etc. Cutting-edge feature selection methods are applied in the present paper and compared to previous results to gain deep knowledge about strategies for Foreign Direct Investment. More precisely, evolutionary feature selection, addressed from the wrapper approach, is applied with two different classifiers as the fitness function: Bagged Trees and Extreme Learning Machines. The proposed intelligent system is validated when applied to real-life data from Spanish Multinational Enterprises (MNEs). These data were extracted from databases belonging to the Spanish Ministry of Industry, Tourism, and Trade. As a result, interesting conclusions are derived about the key features driving to the internationalization of the companies under study. This is the first time that such outcomes are obtained by an intelligent system on internationalization data.

show abstract

“…We precisely aim to adopt such perspective to assess the relevance of diverse firm-level and country-level factors in order to contribute to the study of firm internationalization. Psychic distance comprises both the individual perceptions of distance of a given individual, shaped by the macro-level factors that form those perceptions [4], [47], [53], [58], [59] We follow one of the most influential frameworks of psychic distance proposed in the literature, the one by Dow and Karunaratna [4] published in the leading International Business journal (Journal of International Business Studies), in which six different dimensions (called stimuli) are proposed. Specifically, these authors posit that the individual perceptions of psychic distance are shaped by the country differences in education, industrial development, language, democracy, social system, and religion.…”

Section: Literature Reviewmentioning

confidence: 99%

Peer Review #1 of "Advanced feature selection to study the internationalization strategy of enterprises (v0.1)"

2021

0

View full text Add to dashboard Cite

Firms face an increasingly complex economic and financial environment in which the access to international networks and markets is crucial. To be successful, companies need to understand the role of internationalization determinants such as bilateral psychic distance, experience, etc. Cutting-edge feature selection methods are applied in the present paper and compared to previous results to gain deep knowledge about strategies for Foreign Direct Investment. More precisely, evolutionary feature selection, addressed from the wrapper approach, is applied with two different classifiers as the fitness function: Bagged Trees and Extreme Learning Machines. The proposed intelligent system is validated when applied to real-life data from Spanish Multinational Enterprises (MNEs). These data were extracted from databases belonging to the Spanish Ministry of Industry, Tourism, and Trade. As a result, interesting conclusions are derived about the key features driving to the internationalization of the companies under study. This is the first time that such outcomes are obtained by an intelligent system on internationalization data.

show abstract

Understanding the formation of psychic distance perceptions: Are country-level or individual-level factors more important?

Cited by 19 publications

References 58 publications

Mitigating Psychic Distance and Enhancing Internationalization of Fintech SMEs from Emerging Markets: The Role of Board of Directors

Mitigating Psychic Distance and Enhancing Internationalization of Fintech SMEs from Emerging Markets: The Role of Board of Directors

Advanced feature selection to study the internationalization strategy of enterprises

Peer Review #1 of "Advanced feature selection to study the internationalization strategy of enterprises (v0.1)"

Contact Info

Product

Resources

About