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THE MEASUREMENT OF PSYCHIC DISTANCE: CASE OF FOREIGN INVESTORS IN SLOVAKIA

100%
Dow D., Ferenčíková S.
Ekonomický časopis (Journal of Economics)
|
2009
|
vol. 57
|
issue 9
837-856
EN
The original intention of this paper was to explore how best to measure psychic distance; and more specifically, to test the criterion-related validity of a new set of scales recently made available by Dow and Karunaratna (2006). The empirical setting is inward foreign direct investment (FDI) in Slovakia from 1990 to 2007. The findings indicate that when predicting market selection and performance, a formative index of the new psychic distance scales is a significantly better predictor variable than the traditionally employed scale based on Hofstede's (1980) dimensions of national culture. However, for predicting entry mode choice, the results are more ambiguous. This leads us to an unexpected result of our analyses. The classic TCE-based entry mode model does not appear to provide significant predictive power with respect to FDI entry mode choice in Slovakia. The implications of these findings are discussed in detail.
2

CZECH AND SLOVAK CULTURAL DIMENSIONS AND ADVERTISING (Ceske a slovenske kulturni dimenze a reklama)

80%
Svetlik J.
Communication Today
|
2011
|
vol. 2
|
issue 2
52-65
EN
The article covers the attitude to advertising as the most dominant tool of marketing communication. Advertising National culture is one of the frequent topics of professional discussions on advertising in the sphere of international advertising, most of all in terms of standardization, adaptation and localization of advertising. Probably the best known model which describes the divergences of national cultures is the model of cultural dimensions of the Dutch academic Geert Hofstede. In the first part of this paper the author describes four out of five cultural dimensions including their application in the field of marketing communication. Subsequently the results of large surveys through VSM 94 questionnaire in the Czech (Svetlík) and Slovak republic (Gecikova) are presented and the final data are compared with selected EU countries and the USA. On the basis of Kogut's methodology and established data the cultural distance of both countries was calculated and compared with other countries of the EU. The results show that people from the Czech Republic and the Slovak Republic are in comparison with other EU countries very close to each other from the point of cultural distance. In the third part of the paper there are possible recommendations for the cluster of these two countries presented particularly in advertising appeals, forms and execution of advertising. The author pointed out that the product category and features of the target group have a very strong influence on selection of advertising strategy components.
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