Abstract
Psychic distance is a behavioural concept capturing the uncertainty of decision makers due to lack of knowledge about foreign markets. This uncertainty is a consequence of overall social and economic factors in the foreign markets and of the experience of the decision makers. It has been used with success to explain firms’ market selection and entry, but is less useful for explaining management in foreign markets.
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Johanson, J., Vahlne, JE. (2016). Psychic Distance. In: Augier, M., Teece, D. (eds) The Palgrave Encyclopedia of Strategic Management. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-94848-2_228-1
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DOI: https://doi.org/10.1057/978-1-349-94848-2_228-1
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