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Article
Psychic distance and organisational performance: An empirical examination of international retailing operations
Journal of International Business Studies (2002)
  • Jody Evans, Melbourne Business School
  • Felix T Mavondo, Monash University
Abstract

We develop a reconceptualization and operationalization of psychic distance that broadens the concept. We then empirically test this operationalization and investigate the relationship between psychic distance and organizational performance. Our results suggest that psychic distance, as a summary construct, explains a significant proportion of the variance in financial performance and strategic effectiveness. However, disaggregation of the construct substantially increases its explanatory power. The results also support a psychic distance paradox, where psychic distance has a positive relationship with organizational performance.

Keywords
  • Psychic distance,
  • retailing,
  • performance
Disciplines
Publication Date
2002
Citation Information
Jody Evans and Felix T Mavondo. "Psychic distance and organisational performance: An empirical examination of international retailing operations" Journal of International Business Studies Vol. 33 Iss. 3 (2002)
Available at: http://works.bepress.com/jody_evans/8/