The role of psychic distance in entry mode decisions: Magnifying the threat of opportunism or increasing the need for local knowledge?
Abstract
Research Summary: With respect to entry mode decisions, psychic distance may play two contradictory roles. On one hand, the transaction cost perspective is concerned with opportunism. Psychic distance magnifies the threat of opportunism, which encourages higher levels of control by foreign firms. Conversely, the new internalization perspective emphasizes the role of complementary assets controlled by local entities. Distance increases the need...
Paper Details
Title
The role of psychic distance in entry mode decisions: Magnifying the threat of opportunism or increasing the need for local knowledge?
Published Date
May 22, 2018
Journal
Volume
10
Issue
2
Pages
309 - 334
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