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Online internationalisation, psychic distance reduction and the virtuality trap

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  • Yamin, Mohammad
  • Sinkovics, Rudolf R.

Abstract

This paper examines the effects of online internationalisation on the psychic distance perceptions of internationalising firms. Building on extant internationalisation literatures and exploratory interviews, we generate four propositions positing effects of online internationalisation on psychic distance. The propositions indicate a reduction of psychic distance as a result of experience with online internationalisation. Additionally however, the possibility of a 'virtuality trap', essentially the online analogue of the psychic distance paradox, is also indicated.

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Bibliographic Info

Article provided by Elsevier in its journal International Business Review.

Volume (Year): 15 (2006)
Issue (Month): 4 (August)
Pages: 339-360

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Handle: RePEc:eee:iburev:v:15:y:2006:i:4:p:339-360

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Related research

Keywords: Internationalisation Psychic distance;

References

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  1. Nitish Singh & Sumit Kundu, 2002. "Explaining the Growth of E-Commerce Corporations (ECCs): An Extension and Application of the Eclectic Paradigm," Journal of International Business Studies, Palgrave Macmillan, vol. 33(4), pages 679-697, December.
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  3. Peterson, R.A. & Balasubramanian, S. & Bronnenberg, B.J.J.A.M., 1997. "Exploring the implications of the internet for consumer marketing," Open Access publications from Tilburg University urn:nbn:nl:ui:12-339976, Tilburg University.
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  14. Welch, Catherine & Marschan-Piekkari, Rebecca & Penttinen, Heli & Tahvanainen, Marja, 2002. "Corporate elites as informants in qualitative international business research," International Business Review, Elsevier, vol. 11(5), pages 611-628, October.
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Citations

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Cited by:
  1. Gabrielsson, Mika & Gabrielsson, Peter, 2011. "Internet-based sales channel strategies of born global firms," International Business Review, Elsevier, vol. 20(1), pages 88-99, February.
  2. Pezderka, Noemi & Sinkovics, Rudolf R., 2011. "A conceptualization of e-risk perceptions and implications for small firm active online internationalization," International Business Review, Elsevier, vol. 20(4), pages 409-422, August.
  3. Dikova, Desislava, 2009. "Performance of foreign subsidiaries: Does psychic distance matter?," International Business Review, Elsevier, vol. 18(1), pages 38-49, February.
  4. Prime, Nathalie & Obadia, Claude & Vida, Irena, 2009. "Psychic distance in exporter-importer relationships: A grounded theory approach," International Business Review, Elsevier, vol. 18(2), pages 184-198, April.
  5. Nordman, Emilia Rovira & Tolstoy, Daniel, 2014. "Does relationship psychic distance matter for the learning processes of internationalizing SMEs?," International Business Review, Elsevier, vol. 23(1), pages 30-37.
  6. Reuber, A. Rebecca & Fischer, Eileen, 2011. "International entrepreneurship in internet-enabled markets," Journal of Business Venturing, Elsevier, vol. 26(6), pages 660-679.
  7. Sinkovics, Rudolf R. & Penz, Elfriede, 2009. "Social distance between residents and international tourists--Implications for international business," International Business Review, Elsevier, vol. 18(5), pages 457-469, October.
  8. Andrew Godley & Haiming Hang, 2008. "Revisiting the psychic distance paradox: international retailing in China in the long run (1840-2005," Economics & Management Discussion Papers em-dp2008-66, Henley Business School, Reading University.
  9. Yamin, Mo & Golesorkhi, Sougand, 2010. "Cultural distance and the pattern of equity ownership structure in international joint ventures," International Business Review, Elsevier, vol. 19(5), pages 457-467, October.

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