PL EN


2014 | 10 | 1 | 1-9
Article title

Psychic and geographic distance in the process of firm internationalization. Example of companies from Poland and Lodz region

Content
Title variants
Languages of publication
EN
Abstracts
EN
ternationalisation of firms has been described in many theoretical concepts, among which the Uppsala model is the most widely used. It focuses on the sequence of the process in terms of both forms and directions of internationalisation. The need to gradually advance in internationalisation and the choice of foreign markets are explained by the concept of „psychic distance”, which results, among the others, from cultural differences or business practices of the home and host country. Our paper makes an attempt to answer the question whether Polish firms which enter the path of internationalisation start to invest in one or a few neighbouring countries rather than investing in distant markets and/or several markets simultaneously. The idea is analysed using the example of firms based in Poland and in the Lodz Region involved in foreign direct investment. The paper has been divided into 3 parts. The first one reviews the literature on internationalization models, with particular stress on the Uppsala model; the second part validates the main assumptions of the model using data concerning firms from Poland and the third part focuses on foreign operations of companies from the Lodz Region.
Year
Volume
10
Issue
1
Pages
1-9
Physical description
Dates
published
2014-04-22
References
  • Agarwal, S., 1994. “Socio-cultural distance and the choice of joint ventures: a contingency perspective”, Journal of International Marketing, 2 (2), pp.63-80
  • Barkema H.G., Bell, John H.J., Pennings, J.M., 1996. “Foreign Entry, Cultural Barriers, and Learning”, Strategic Management Journal, 17 (2), pp.151-66, http://dx.doi.org/10.1002/(SICI) 1097-0266(199602)17:2<151::AID-SMJ799>3.0.CO;2-Z
  • Beckerman, W., 1956. “Distance and the Pattern of Intra-European Trade”, The Review of Economics and Statistics, 38, pp.31-40, http://dx.doi.org/10.2307/1925556
  • Benito, G., Gripsrud G., 1992. “The expansion of foreign direct investments: Discrete rational location choices or a cultural learning process?”, Journal of International Business Studies, 23, pp.461-476, http://dx.doi.org/10.1057/palgrave.jibs.8490275
  • Bilkey, W.J., Tesar G., 1977. “The Export Behavior of Smaller Wisconsin Manufacturing Firms”, Journal of International Business Studies, (Spring/Summer), pp.93-98, http://dx.doi.org/10.1057/palgrave.jibs.8490783
  • Brouthers, K.D., Brouthers, L.E., 2000. “Acquisition or greenfield startup? Institutional, cultural and transaction cost influences”, Strategic Management Journal, 21(1), pp.89-97, http://dx.doi.org/10.1002/(SICI)1097-0266(200001)21:1<89::AID-SMJ85>3.0.CO;2-8
  • Calof, J., Beamish, P.W., 1995. “Adapting to foreign markets: explaining internationalization”, International Business Review, 4(2), pp.115-131, http://dx.doi.org/10.1016/0969-5931(95)00001-G
  • Cavusgil, S.T., 1980. “On the internationalization process of firms”, European Research. 8(6), pp.273-281
  • Cavusgil, S.T., Knight, G., 2009. “Born Global Firms: A New International Enterprise”, New York: Business Expert Press, http://dx.doi.org/10.4128/9781606490136
  • Czinkota, M.R., 1982. “Export development strategies: US promotion Policy”, New York: Praeger
  • Dikova, D., 2009. “Performance of foreign subsidiaries: Does psychic distance matter?”, International Business Review, 18(1), pp.38-49, http://dx.doi.org/10.1016/j.ibusrev.2008.11.001
  • Dunning, J.H., 1981. “International Production and the Multinational Enterprise”, London: George Allen and Unwin
  • Dunning J.H., 1988. “Location and the Multinational Enterprise; A Neglected Factor?”, Journal of International Business Studies, 29(1), pp.45-66, http://dx.doi.org/10.1057/palgrave.jibs.8490024
  • Dunning, J.H., 1995. “Trade, Location of Economic Activity and The Multinational Enterprise: A search for an eclectic approach”, in: “Readings in International Enterprise”, Drew P. (ed.), London, pp.250-274
  • Eriksson, K., Majkgård, A., Sharma, D.D., 2000. “Path dependence in the internationalization process”, Management International Review, 40(4), pp.307-328
  • Evans, J., Mavondo, F.T., 2002. “Psychic Distance and Organizational Performance: An Empirical Examination of International Retailing Operations”, Journal of International Business Studies, 33(3), pp.515-532, http://dx.doi.org/10.1057/palgrave.jibs.8491029
  • Freeman, S., Edwards R., & Schroder B., 2006. “How Smaller Born-Global Firms Use Networks and Alliances to Overcome Constraints to Rapid Internationalization”, Journal of International Marketing, 14(3), pp.33-63, http://dx.doi.org/10.1509/jimk.14.3.33
  • Gorynia, M., Jankowska, B., 2007. “Teorie internacjonalizacji”, Gospodarka Narodowa, 10, pp.21-44
  • Hashai, N., Almor, T., 2004. “Gradually internationalizing 'born global' firms: an oxymoron?”, International Business Review, 13(4), pp.465-483, http://dx.doi.org/10.1016/j.ibusrev.2004.04.004
  • Hofstede, G., 1980. “Culture's Consequences: International Differences in Work-Related Attitudes”, Beverely Hills: Sage Publications
  • Hofstede, G., 2001. “Culture's Consequences: Comparing values, behaviors, institutions, and organizations across nations”, Thousand Oaks, California: Sage Publications.
  • Johanson, I., Vahlne, I., 1990. “The Mechanism of Internationalization”, International Marketing Review, 7(4), pp.11-24, http://dx.doi.org/10.1108/02651339010137414
  • Johanson, J., Mattson, L.G., 1988. “Internationalization in industrial systems - A network approach. in: “Industrial networks: A new view of reality”, Axellson, B., Easton, G. (eds.). London: Routledge
  • Johanson, J., Mattsson, L.-G., 1993. “Internationalization in industrial systems - a network approach, strategies in global competition”. in: “The Internationalization of the Firm: A Reader”, Buckley, P.N., Ghauri, P.J. (eds.). London: Academic Press
  • Johanson, J., Vahlne, J.E., 1977. “The internationalization process of the firm - A model of knowledge development and increasing market commitments”, Journal of International Business Studies, 8(1), pp.23-32, http://dx.doi.org/10.1057/palgrave.jibs.8490676
  • Johanson, J., Wiedersheim-Paul, F., 1975. “The Internationalization of the Firm - Four Swedish Cases”, The Journal of Management Studies, 12(3), pp.305-323, http://dx.doi.org/10.1111/j.1467-6486.1975.tb00514.x
  • Knight, G.A., Cavusgil, S.T., 1996. “The Born Global Firm: A Challenge to Traditional Internationalization Theory”, Advances in International Marketing, 8, pp.11-26
  • Kogut, B., Singh H., 1988. “The Effect of National Culture on the Choice of Entry Mode”, Journal of International Business Studies, 19 (3), pp.411-32, http://dx.doi.org/10.1057/ palgrave.jibs.8490394
  • Lee, D.J., 1998. “Developing International Strategic Alliances between Exporters and Importers: The Case of Australian Exporters”, International Journal of Research in Marketing, 15(4), pp.335-348, http://dx.doi.org/10.1016/S0167-8116(98)00010-X
  • Melin, L., 1992. “Internationalization as a strategy process”, Strategic Management Journal, 13, pp.99-118, http://dx.doi.org/10.1002/smj.4250130908
  • Möller, K., Rajala, A., 2007. “Rise of strategic nets — New modes of value creation”, Industrial Marketing Management, 36, pp.895-908, http://dx.doi.org/10.1016/j.indmarman.2007.05.016
  • Ng, S.I., Zain, M., 2006. “The Impacts of Network Relationships on SMEs' Internationalization Process”, Thunderbird International Business Review, 48(2), pp.183-205, http://dx.doi.org/10.1002/tie.20092
  • O'Grady, S.O., Lane, H.W., 1996. “The Psychic Distance Paradox”, Journal of International Business Studies, 27(2), pp.309-333, http://dx.doi.org/10.1057/palgrave.jibs.8490137
  • Pothukuchi, V. et al., 2002. “National and Organizational Culture Differences and International Joint Venture Performance”, Journal of International Business Studies, 33 (2), pp.243-65
  • http://dx.doi.org/10.1057/palgrave.jibs.8491015
  • Przybylska, K., 2009. “Znaczenie dystansu psychicznego w procesie internacjonalizacji polskich przedsiębiorstw”, in: Przedsiębiorczość jako niewykorzystane źródło sukcesu polskiej gospodarki”, Okoń-Horodyńska, E. (ed.), Warszawa: PTE
  • Reid, S., 1983. “Firm Internationalization, Transaction Costs And Strategic Choice”. International Marketing Review, 1(2), pp.44-56, http://dx.doi.org/10.1108/eb008251
  • Reid, S.D., 1981. “The decision-market and export entry and expansion”, Journal of International Business Studies, 12(2), pp.101-112, http://dx.doi.org/10.1057/palgrave.jibs.8490581
  • Rennie, M.W., 1993. “Global competitiveness: Born global”, McKinsey Quarterly, Vol.4, pp.45-52
  • Sousa, C.M., Bradley F., 2006. “Cultural Distance and Psychic Distance: Two Peas in a Pod”, Jour¬nal of International Marketing. 14(1), pp.79-90
  • Sullivan, D., Bauerschmidt, A., 1990. “Incremental internationalization: a test of Johanson and Vahlne's thesis”, Management International Review, 30(1), pp.19-30
  • Turnbull, P.W., 1987. “A Challenge to the Stages Theory of the Internationalization Process”, in: “Managing Export Entry and Expansion”, Rosson, P.J., Reid, S.D. (ed.), New York: Praeger
  • Vahlne, J-E., Nordstrom, K.A., 1990. Is the Globe Shrinking? Psychic Distance and the Establishment of Swedish Sales Subsidiaries During the Last 100 Years”, EIBA Conference. Stockholm
  • Welch, L.S., Luostarinen, R.K., 1988. “Internationalization: Evolution of a Concept”, Journal of General Management, 14 (2), pp.36-64
  • Wind, Y., Douglas, S.P., & Perlmutter H.V., 1973. “Guidelines for Developing International Marketing Strategies”, Journal of Marketing, 37, pp.14-23, http://dx.doi.org/10.2307/1250046
  • Zhou, L., Wu, W., & Luo, X., 2007. Internationalization and the Performance of Born Global SMEs: The Mediating Role of Social Networks”, Journal of International Business Studies, 38 (4), pp.673-690, http://dx.doi.org/10.1057/palgrave.jibs.8400282
Document Type
Publication order reference
YADDA identifier
bwmeta1.element.desklight-3e11bfff-ec67-4621-88ab-55d60ac0385d
JavaScript is turned off in your web browser. Turn it on to take full advantage of this site, then refresh the page.