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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.

Suggested Citation

  • Yamin, Mohammad & Sinkovics, Rudolf R., 2006. "Online internationalisation, psychic distance reduction and the virtuality trap," International Business Review, Elsevier, vol. 15(4), pages 339-360, August.
  • Handle: RePEc:eee:iburev:v:15:y:2006:i:4:p:339-360
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    References listed on IDEAS

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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. repec:spr:manint:v:51:y:2011:i:2:d:10.1007_s11575-011-0069-0 is not listed on IDEAS
    3. Robert Wentrup, 2016. "The online–offline balance: internationalization for Swedish online service providers," Journal of International Entrepreneurship, Springer, vol. 14(4), pages 562-594, December.
    4. 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.
    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. Jean, Ruey Jer “Bryan”, 2014. "What makes export manufacturers pursue functional upgrading in an emerging market? A study of Chinese technology new ventures," International Business Review, Elsevier, vol. 23(4), pages 741-749.
    7. Reuber, A. Rebecca & Fischer, Eileen, 2011. "International entrepreneurship in internet-enabled markets," Journal of Business Venturing, Elsevier, vol. 26(6), pages 660-679.
    8. repec:spr:manint:v:53:y:2013:i:3:d:10.1007_s11575-012-0149-9 is not listed on IDEAS
    9. 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.
    10. repec:eee:iburev:v:27:y:2018:i:1:p:1-20 is not listed on IDEAS
    11. repec:pal:jintbs:v:48:y:2017:i:9:d:10.1057_s41267-017-0120-x is not listed on IDEAS
    12. Dikova, Desislava, 2009. "Performance of foreign subsidiaries: Does psychic distance matter?," International Business Review, Elsevier, vol. 18(1), pages 38-49, February.
    13. Mathews, Shane & Bianchi, Constanza & Perks, Keith J. & Healy, Marilyn & Wickramasekera, Rumintha, 2016. "Internet marketing capabilities and international market growth," International Business Review, Elsevier, vol. 25(4), pages 820-830.
    14. Tran, Yen & Yonatany, Moshe & Mahnke, Volker, 2016. "Crowdsourced translation for rapid internationalization in cyberspace: A learning perspective," International Business Review, Elsevier, vol. 25(2), pages 484-494.
    15. repec:spr:manint:v:54:y:2014:i:5:d:10.1007_s11575-014-0219-2 is not listed on IDEAS
    16. 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.
    17. Paul, Justin & Gupta, Parul, 2014. "Process and intensity of internationalization of IT firms – Evidence from India," International Business Review, Elsevier, vol. 23(3), pages 594-603.
    18. 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.
    19. repec:eee:iburev:v:27:y:2018:i:2:p:355-366 is not listed on IDEAS
    20. 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.
    21. Hurmerinta, Leila & Nummela, Niina & Paavilainen-Mäntymäki, Eriikka, 2015. "Opening and closing doors: The role of language in international opportunity recognition and exploitation," International Business Review, Elsevier, vol. 24(6), pages 1082-1094.
    22. Alfredo Jiménez & David Fuente, 2016. "Learning from Others: the Impact of Vicarious Experience on the Psychic Distance and FDI Relationship," Management International Review, Springer, vol. 56(5), pages 633-664, October.
    23. repec:spr:manint:v:57:y:2017:i:2:d:10.1007_s11575-016-0292-9 is not listed on IDEAS

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