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Psychic distance and country image in exporter-importer relationships

Durand, Auralia, Turkina, Ekaterina and Robson, Matthew ORCID: 2016. Psychic distance and country image in exporter-importer relationships. Journal of International Marketing 24 , pp. 31-57. 10.1509/jim.15.0056

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Conflicting evidence on the issue of psychic distance (PD) in international business relationships has suggested the existence of misunderstood boundary conditions to its effect. This article argues that country image (CI) is a contingent factor to the effect of PD. Expectancy–value theory provides the theoretical foundations, and structural equation modeling analyses for a sample of 358 exporter–importer relationships in the global wine industry provide empirical support for this argument. Product-related CI mitigates the negative impact of PD on the relational exchange orientation (REO) between firms. Specifically, a high level of PD dampens REO when product-related CI is poor, whereas a strong product-related CI helps firms facing such PD conditions to build REO. People-related CI has an indirect effect on REO through product-related CI. This study helps explain the “paradox of distance” and offers a fresh perspective on how to handle the issue of PD when relevant.

Item Type: Article
Date Type: Publication
Status: Published
Schools: Business (Including Economics)
Publisher: SAGE Publications
ISSN: 1069-031X
Related URLs:
Date of First Compliant Deposit: 7 May 2019
Date of Acceptance: 12 April 2016
Last Modified: 07 Nov 2023 16:12

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