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Triadic multilevel psychic distance in firm internationalization
Mälardalen University, School of Business, Society and Engineering, Industrial Economics and Organisation.ORCID iD: 0000-0001-7837-8298
2024 (English)In: International Marketing Review, ISSN 0265-1335, E-ISSN 1758-6763, Vol. 41, no 7, p. 23-58Article in journal (Refereed) Published
Abstract [en]

Purpose

This study focuses on the triadic multilevel psychic distance (MPD) between the firm, target market and bridge-maker and its consequences for firm internationalization. Specifically, it spotlights the triadic psychic distance between firms, the levels of psychic distance in the target market (country and business) and the bridge-maker. Therefore, this study examines the triadic MPD among these three entities and its impact on firm internationalization.

Design/methodology/approach

This study uses qualitative and case study research approaches. It is based on 8 case companies and 24 internationalization cases. Secondary data were collected, and interviews with bridge-makers and industry experts were conducted.

Findings

The study found that MPD appeared in the triad. The MPD between firms and markets is related to country-specific differences and business difficulties. The MPD between the firm and the bridge-maker is based on the latter's lack of knowledge vis-a-vis bridging the firm's MPD. Finally, the MPD between bridge-makers and the market is based on the former's lack of knowledge of the home country's business difficulties.

Originality/value

This is the first study to develop and adopt a triadic multilevel psychic distance conceptualization that provides evidence for and sheds light on the triadic MPD and its effect on firm internationalization. This study identifies the reasons behind triadic MPD in connection to firm internationalization. Notably, firm internationalization is interdependent on the triadic MPD setting between the firm, bridge-maker and target market. It has theoretical value and contributes to the recent advancement in the understanding of MPD in international marketing literature.

Place, publisher, year, edition, pages
2024. Vol. 41, no 7, p. 23-58
Keywords [en]
Triadic, Multilevel psychic distance, Bridge-maker, Firm, Target market, Internationalization, CULTURAL DISTANCE, PERFORMANCE, IMPACT, MODEL, PERCEPTIONS, MARKETS, CHOICE, LEVEL
National Category
Business Administration
Identifiers
URN: urn:nbn:se:mdh:diva-65355DOI: 10.1108/IMR-07-2022-0176ISI: 001135352300001Scopus ID: 2-s2.0-85181478381OAI: oai:DiVA.org:mdh-65355DiVA, id: diva2:1828583
Available from: 2024-01-17 Created: 2024-01-17 Last updated: 2024-01-17Bibliographically approved

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Safari, Aswo

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