Psychic distance

Muriel Durand

Chapter 128 in Elgar Encyclopedia of Mergers and Acquisitions, 2026, pp 348-351 from Edward Elgar Publishing

Abstract: This chapter examines psychic distance, highlighting its influence on firms’ internationalization and cross-border M&A strategies. Differentiating psychic distance from cultural distance, it emphasizes the role of perceived differences in shaping decision-making and performance. The chapter discusses its role in entry modes, culture-performance relationships, and the “psychic distance paradox,” while advocating for a multilevel, manager-focused framework that considers individual perceptions alongside country-level differences.

Keywords: Psychic distance; Cultural differences; Perceptions; Mergers and Acquisitions; Cross-border M&As (search for similar items in EconPapers)
Date: 2026
ISBN: 9781800880856
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