A mediating model of psychic distance and FDI market selection

Dow, D., Ambos, B. and Hakanson, L. (2010). A mediating model of psychic distance and FDI market selection. In: Sid Gray and Catherine Welch, ANZIBA 2010 Conference Proceedings: Global Business and Sustainable Development. ANZIBA Annual Conference, Sydney, Australia, (1-35). 15-17 April 2010.

Author Dow, D.
Ambos, B.
Hakanson, L.
Title of paper A mediating model of psychic distance and FDI market selection
Conference name ANZIBA Annual Conference
Conference location Sydney, Australia
Conference dates 15-17 April 2010
Convener The University of Sydney
Proceedings title ANZIBA 2010 Conference Proceedings: Global Business and Sustainable Development
Place of Publication Sydney, NSW
Publisher Academy of International Business
Publication Year 2010
Year available 2010
Sub-type Fully published paper
ISBN 9780980789904
Editor Sid Gray
Catherine Welch
Start page 1
End page 35
Total pages 35
Language eng
Abstract/Summary In developing and testing a mediating model of psychic distance, this paper bridges the gap between two distinct approaches to the concept on psychic distance - defining and measuring the construct in terms of exogenous national level differences, and defining and measuring it in terms of the individual decision-maker's perceptions. The paper confirms five distinct types of national level differences (or distances) which are significant antecedents of perceptions of psychic distance. In addition to that, two asymmetric 'distance-bridging' factors are also found to be significant predictors of psychic distance. In turn, perceptions of psychic distance prove to be a significant predictor of foreign direct investment flows. Subsequent tests also confirm that in all but one case, the national level distance variables represent complete mediation relationships. Overall, the model confirms both the criterion validity of perceptions of psychic distance and the construct validity of its antecedents.
Subjects 150309 Logistics and Supply Chain Management
910402 Management
Keyword Psychic distance
Cultural distance
Hofstede
Market selection
FDI
Q-Index Code E1
Q-Index Status Confirmed Code
Institutional Status UQ
Additional Notes session A1 Also presented at: 35th European International Business Academy Conference 2009

 
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Created: Thu, 12 Aug 2010, 14:58:26 EST by Karen Morgan on behalf of UQ Business School