Factors underlying cultural and psychic distance in cross-national activities of export managers: Qualitative insights from a CEE country

Mateja Bodlaj and Irena Vida

Journal of East European Management Studies, 2018, vol. 23, issue 3, 351-376

Abstract: In light of the currently limited understanding of the role of cultural issues that may hamper firm success in cross-border activities, particularly in the context of Central and Eastern European (CEE) countries, the purpose of this paper is to examine how export managers experience and perceive cross-national differences, frequently referred to as ‘psychic’ or ‘cultural distance’ in the literature. We offer empirical insights from a small and open CEE country, in which exports are recognized as a driving force for economic growth. We conducted a series of systematic in-depth interviews on the sample of Slovenian exporting companies of different sizes, industries, and experiences in cross-border activities. Based on a grounded theory approach, we identified three sets of factors underlying psychic distance and their six related components from the exporters’ perspective: cultural differences and the language (i.e., patterns of thinking, behaviours, language), perceived differences in relational business practices (i.e., relationships with business people, business practices), and differences in the macro environment.

Date: 2018
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DOI: 10.5771/0949-6181-2018-3-351

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