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Learn more about our research through our seminar series on three different campuses.
Venue: Communication Lab, SST 1.30, Massey University, Manawatu
OR Online via MediaSite here: http://webcast.massey.ac.nz/Mediasite/Play/646b9ebdda0f45d196e77e634a675da51d
Time: 12.10 - 1 pm
When: 26th October 2016, 12 - 1
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International business scholars have debated for decades the essence and relevance of psychic distance as a predictor for export market selection. Also contested is the most appropriate measure for psychic distance. When psychic distance is described as ‘the perception of distance’ between the domestic and foreign market, the benefits of subjective, qualitative measures resonate. However, when described as the ‘flow on information’ between the domestic and foreign market, the merit of operationalizing psychic distance using objective, macro-level data prevails. This article explores psychic distance measures by comparing the perceptions of a panel of trade experts, who provide subjective insights on psychic distance, to an index of objective, information flow indicators. Both measures evaluate the psychic distance of 25 markets for New Zealand exporters in a single industry. Findings show similarities between the two measures at the ‘low’ end of the psychic distance spectrum but important variations at the ‘medium’ to ‘high’ levels. Although selected foreign markets are perceived as distant, market opportunities increase the flow of information and, ultimately, the flow of trade.
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Last updated on Wednesday 19 October 2016