Post-entry strategic significance of export market: how does psychic distance work? The evidence from European SMEs

Mariola Ciszewska-Mlinaric, Krzysztof Obloj and Marcus Hülsdau

Journal of East European Management Studies, 2019, vol. 24, issue 2, 235-258

Abstract: The purpose of this study is to broaden our understanding of the post-entry effects of psychic distance by asking what markets - psychically close or distant - became over time the most strategically significant for European SMEs. Specifically, we analyse whether psychic distance is a valid predictor of the strategic significance of foreign market, as well as whether and how this relationship is moderated by export diversification. Contrary to expectations, the study findings reveal that psychic distance to the foreign market actually increases its post-entry strategic significance, providing support for the phenomenon of PD paradox.

Date: 2019
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DOI: 10.5771/0949-6181-2019-2-235

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