HOW DOES PSYCHIC DISTANCE IMPACT EXPORT MARKETING STRATEGY AND ITS PERFORMANCE: CONCEPTUAL INSIGHTS
DOI:
https://doi.org/10.5755/j01.em.18.4.5714Keywords:
psychic distance, export marketing strategy, standardization, adaptation, export performance, international experience, firm resources, SMEAbstract
Recent empirical findings indicate that psychic distance is positively associated with export marketing strategy adaptation. Also it is assumed that psychic distance may have a greater impact on the SME because such firms probably lack internal resources to reduce psychic distance in terms of obtaining relevant information. The review of the literature indicates that adaptation requires a higher degree of resources and that there is a strong link between the level of international competence and the degree of adaptation. However, smaller sized firms are usually associated with a smaller amount of available resources. Thus, the impact of psychic distance on the choice of export marketing strategy and its performance outcomes is likely to be contingent on the internal resources and international experience.
The aim of the article is to develop a conceptual framework depicting the relationship between psychic distance, export marketing strategy and performance outcomes in the case of SME.
