Psychic distance and cross – border cooperation of SMEs: An empirical study on Saxon and Czech entrepreneurs’ interest in cooperation

Cornelia Zanger, Radka Hodicová and Hansjoerg Gaus

Journal of East European Management Studies, 2008, vol. 13, issue 1, 40 - 62

Abstract: This paper examines the relationship between the psychic distance of decision makers in SMEs from specific foreign markets and their interest in cooperation with companies from those countries. Based on a review of the literature and a qualitative empirical study among entrepreneurs in the Saxon-Czech border area, the paper identifies the central explanatory variables of psychic distance, thus contributing to a theoretically-based conceptualization of this construct. Previous conceptualizations of psychic distance are extended and specified. This reveals the necessity for a wider inclusion of perceived differences in the political and legal situations, the mind-set as well as the historical development.

Keywords: psychic distance; cross – border cooperation; internationalization; SMEs (search for similar items in EconPapers)
JEL-codes: J21 J28 M11 M20 P31 (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (3)

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