Performance of foreign subsidiaries: Does psychic distance matter?

International Business Review

Volumn 18, Issue 1, 2009, Pages 38-49

  Dikova, Desislava ^a  

^a UNIVERSITY OF GRONINGEN   (Netherlands)

Author keywords

Market specific experience; Psychic distance paradox; Subsidiary performance; Transition economies

Indexed keywords

EID: 61549085319     PISSN: 09695931     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.ibusrev.2008.11.001     Document Type: Article

References (58)

1. Anderson E. Two firms, one frontier: On assessing joint venture performance. Sloan Management Review 29 (1990) 19-30
2. Anderson E., and Gatignon H. Modes of foreign entry: A transaction cost analysis and propositions. Journal of International Business Studies 24 (1986) 289-302
3. Barkema H.G., and Drogendijk R. Internationalization in small, incremental or larger steps?. Journal of International Business Studies 38 (2007) 1132-1148
4. Bartlett C.A., and Ghoshal S. Managing across borders: The transnational solution (1989), Harvard Business School Press, Boston, MA
5. Benito G.R.G., and Grisprud G. The expansion of foreign direct investments: Discrete rational location choices or a cultural learning process?. Journal of International Business Studies 3rd quarter (1992) 461-476
6. Boyacigiller N. The role of expatriates in the management of interdependence, complexity and risk in multinational corporations. Journal of International Business Studies 23 3 (1990) 357-381
7. Brouthers K.D. Institutional, cultural and transaction costs influences on entry mode choice and performance. Journal of International Business Studies 33 (2002) 203-221
8. Brouthers K.D. The influence of international risk on entry mode strategy in the computer software industry. Management International Review 35 1 (1995) 7-28
9. Brouthers L.E., Brouthers K.D., and Werner S. Is Dunning's eclectic framework descriptive or normative?. Journal of International Business Studies 30 (1999) 831-844
10. Brouthers L.E., Brouthers K.D., and Werner S. Perceived Environmental Uncertainty, Entry Mode Choice and Satisfaction with EC-MNC Performance. British Journal of Management 11 3 (2000) 183-195
11. Brouthers K.D., Brouthers L.E., and Werner S. Transaction cost-enhanced entry mode choices and firm performance. Strategic Management Journal 24 12 (2003) 1239-1248
12. Buckley P.J. International capital budgeting (1996), Prentice-Hall, New Jersey
13. Buckley P.J., and Ghauri P.N. Globalization, economic geography and the strategy of multinational enterprises. Journal of International Business Studies 35 2 (2004) 81-92
14. Carlsson J., Nordegren A., and Sjoholm F. International experience and the performance of Scandinavian firms in China. International Business Review 14 (2005) 21-40
15. Cohen W.M., and Levinthal D.A. Absorptive capacity: A new perspective on learning and innovation. Administrative Science Quarterly 35 1 (1990) 128-152
16. Christensen H.K., and Montgomery C.A. Corporate economic performance: Diversification strategy versus market structure. Strategic Management Journal 2 (1981) 327-344
17. Dawson S., and Dickinson D. Conducting international mail survey: The effect of incentives on response rates with an industry population. Journal of International Business Studies (1988, fall) 491-496
18. Dess G.G., and Robinson R.B. Measuring organizational performance in the absence of objective measures: The case of the privately-held firm and conglomerate business unit. Strategic Management Journal 5 (1984) 265-273
19. Dichtl E., Koeglmayr H.-G., and Mueller S. International orientation as a precondition for export success. Journal of International Business Studies 21 1 (1990) 23-40
20. Dow D., and Karunaratha A. Developing a multidimensional instrument to measure psychic distance stimuli. Journal of International Business Studies 37 (2006) 578-602
21. Ellis P.D. Does psychic distance moderate the market size-entry sequence relationship?. Journal of International Business Studies 39 (2008) 351-369
22. Ellis P.D. Paths to foreign markets: Does distance to market affect firm internationalization?. International Business Review 16 5 (2007) 573-593
23. Evans J., and Mavondo F.T. Psychic distance and organizational performance: An empirical examination of international retailing operations. Journal of International Business Studies 33 3 (2002) 515-532
24. Evans J., Mavondo F.T., and Bridson K. Psychic distance: Antecedents, retail strategy implications and performance outcomes. Journal of Marketing 16 2 (2008) 32-63
25. Evans J., Treadgold A., and Mavondo F. Explaining export development through psychic distance. International Market Review 17 2 (2000) 164-168
26. Feichtinger C., and Fink G. The collective culture shock in transition countries: Theoretical and empirical implications. Leadership and Organizational Development Journal 19 6 (1998) 302-324
27. Gaur A.S., and Lu J.W. Ownership strategies and survival of foreign subsidiaries: Impact of Institutional distance and experience. Journal of Management 33 (2007) 84-110
28. Geringer J.M., and Hebert L. Measuring performance of international joint ventures. Journal of International Business Studies 22 (1991) 249-263
29. Ghoshal S., and Nohria N. Horses for courses: Organizational forms for multinational corporations. Sloan Management Review (1993, Winter) 23-35
30. Gomes-Casseres B. Firm ownership preferences and host government restrictions: An integrative approach. Journal of International Business Studies 21 (1990) 1-22
31. Hair J., Anderson R.E., Tatham R.L., and Black W.C. Multivariate data analysis with readings (1995), Prentice-Hall, Engelwood Cliffs, NJ
32. Harzing A.W.K. Response rates in international mail surveys: Results of a 22-country study. International Business Review 6 (1997) 641-664
33. Harzing A.W.K. An empirical test and extension of the Bartlett and Ghoshal typology of multinational companies. Journal of International Business Studies 31 1 (2000) 101-120
34. Hofstede G. Culture's consequences: Comparing values, behaviors, institutions, and organizations across nations. 2nd ed. (2001), Sage, Thousand Oaks, CA
35. Hult G.T.M., Ketchen D.J., Griffith D.A., Chabowski B.R., Hamman M.K., Dykes B.J., Pollitte W.A., and Cavusgil S.T. An assessment of the measurement of performance in international business research. Journal of International Business Studies 39 (2008) 1064-1080
36. Hymer S.H. The international operations of national firms: A study of foreign direct investment (1975), MIT Press, Cambridge, MA
37. Johanson J., and Vahlne J.-E. The internationalization process of the firm: A model of knowledge development and increasing foreign market commitments. Journal of International Business Studies 8 1 (1977) 23-32
38. Kaufmann, D., Kraay A., & Mastruzzi, M. (2005). Governance matters IV: Governance indicators for 1996-2004. World Bank Policy Research Paper 3630, http://econ.worldbank.org.
39. Kogut B., and Singh H. The effect of national culture on the choice of entry mode. Journal of International Business Studies 19 (1988) 411-432
40. Larimo J. Form of investment by Nordic firms in world markets. Journal of Business Research 42 (2002) 1-13
41. Meyer K.E., and Peng M.W. Probing theoretically into Central and Eastern Europe: Transactions, resources and institutions. Journal of International Business Studies 36 6 (2005) 600-621
42. Mitra D., and Golder P.N. Whose culture matters? Near-market knowledge and its impact on foreign market entry timing. Journal of Marketing Research 39 3 (2002) 350-365
43. Nordstrom K.A., and Vahlne J.-E. Is the globe shrinking? Psychic distance and the establishment of Swedish subsidiaries during the last 100 years. In: Landeck M. (Ed). International Trade: Regional and Global Issues (1994), St Martin's Press, New York 41-56
44. O'Grady S., and Lane H.W. The psychic distance paradox. Journal of International Business Studies 2nd quarter (1996) 309-330
45. Oliver C. The influence of institutional and task environment relationships on organizational performance: The Canadian construction industry. Journal of Management Studies 34 (1997) 99-124
46. Padmanabhan P., and Cho K.R. Decision specific experience in foreign ownership and establishment strategies: Evidence from Japanese firms. Journal of International Business Studies 30 (1999) 25-44
47. Pedersen T., and Petersen B. Learning about foreign markets: Are entrant firms exposed to a "shock effect"?. Journal of International Marketing 12 1 (2004) 103-123
48. Peng M.W., and Heath P.S. The growth of the firm in planned economies in transition: Institutions, organizations, and strategic choice. Academy of Management Review 21 2 (1996) 492-528
49. Penrose E.T. The theory of the growth of the firm (1959), Basil Blackwell, Oxford
50. Podsakoff P.M., MacKenzie J.Y., and Podsakoff N.P. Common method biases in behavioural research: A critical review of the literature and recommended remedies. Journal of Applied Psychology 88 5 (2003) 879-903
51. Ronen S., and Shenkar O. Clustering countries on attitudinal dimensions: A review and synthesis. Academy of Management Review 10 3 (1985) 435-454
52. Rugman A.M., and Verbeke A. A perspective on regional and global strategies of multinational enterprises. Journal of International Business Studies 35 1 (2004) 3-18
53. Shiphandler Z.E., Terpstra V., and Shaheen D. A study on marketing strategies of European and Japanese firms manufacturing in the US. International Business Review 3 (1994) 181-199
54. Slangen, A.H.L. (2004). Studies on the determinants of foreign entry mode choices and performance. CentER Dissertation Series (139), Tilburg University.
55. Stottinger B., and Schlegelmilch B.B. Explaining export development through psychic distance: Enlightening or elusive?. International Marketing Review 15 5 (1998) 357-372
56. Uhlenbruck K., and DeCastro J.O. Foreign acquisitions in Central and Eastern Europe: Outcomes in privatization in transition economies. Academy of Management Journal 43 (2000) 381-403
57. Whitelock J., and Jobber D. An evaluation of external factors in the decision of UK industrial firms to enter a new non-domestic market: An exploratory study. European Journal of Marketing 38 11/12 (2004) 1437-1455
58. Yamin M., and Sinkovics R.R. Online internationalization, psychic distance reduction and the virtuality trap. International Business Review 15 (2006) 339-360