Operationalizing psychic distance: A revised approach

Brewer, Paul A. (2007) Operationalizing psychic distance: A revised approach. Journal of International Marketing, 15 1: 44-66. doi:10.1509/jimk.15.1.044

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Author Brewer, Paul A.
Title Operationalizing psychic distance: A revised approach
Journal name Journal of International Marketing   Check publisher's open access policy
ISSN 1069-031X
Publication date 2007
Year available 2007
Sub-type Article (original research)
DOI 10.1509/jimk.15.1.044
Volume 15
Issue 1
Start page 44
End page 66
Total pages 23
Editor S.Tamer Cavusgil
F.Van Gorp-Coorley
Place of publication Chicago, Ill
Publisher American Marketing Association
Collection year 2008
Language eng
Subject C1
350204 Marketing and Market Research
720403 Management
Abstract Psychic distance, as described in the Uppsala internationalization model, is based on the impediments to information flows between a country market and a firm. The greater the impediments, the longer is the distance. The operationalization of psychic distance in empirical investigations is most commonly accomplished through the estimation of perceived “differences” between countries because it is argued that differences account for impediments to knowledge flows. However, this process is highly flawed. This article responds to the many calls for an improvement in the understanding and operationalization of psychic distance. It does so not only by holding to the original definition but also by accounting for wider measures than the differences between the firm's home country and the target country. The author identifies 15 variables from the literature and discusses the relationship between the variables and psychic distance. Using these variables, he constructs an index that measures psychic distance and then applies it to measure distances between 25 country combinations. Finally, he compares the results with actual exporter behavior. A close, negative correlation exists between the psychic distance index and firms' actual selection of export markets.
Keyword exports
Internationalization Process
Market Selection
Q-Index Code C1
Q-Index Status Confirmed Code

Document type: Journal Article
Sub-type: Article (original research)
Collections: Excellence in Research Australia (ERA) - Collection
2008 Higher Education Research Data Collection
UQ Business School Publications
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Citation counts: TR Web of Science Citation Count  Cited 66 times in Thomson Reuters Web of Science Article | Citations
Scopus Citation Count Cited 93 times in Scopus Article | Citations
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Created: Wed, 27 Feb 2008, 11:02:07 EST by Karen Morgan on behalf of UQ Business School