Carlos M. P. Sousa

Cultural Distance and Psychic Distance: Two Peas in a Pod?

Cultural distance and psychic distance are two concepts that are widely used in the international business literature. A large number of studies use both concepts interchangeably with no clear distinction between them. The authors propose a new model to assess cultural distance and psychic distance separately. Through the use of survey data of more than 300 managers, this article shows that both concepts are conceptually different and that psychic distance is determined by cultural distance and the individual values of the managers.

Global markets: does psychic distance matter?

This paper examines the impact of psychic distance on the international marketing strategy of the firm, particularly the degree of adaptation of the marketing programme. The relationship between psychic distance and marketing strategy has received relatively little focused research attention despite the importance these two constructs separately enjoy in the literature. Confirmatory factor analysis and structural equation modeling are used to substantiate the relationship between psychic distance and international marketing strategy. The research findings, which are based on a survey of more than 300 managers and owners responsible for the foreign markets of their firms, suggests that psychic distance explains a significant proportion of the variance of the degree of marketing programme adaptation. The paper concludes with the implications of these findings with respect to the explanatory power of the psychic distance concept in the context of the international marketing strategy.

The Key Role of Managers' Values in Exporting: Influence on Customer Responsiveness and Export Performance

Values are an essential element explaining a persons attitudes and behavior. Therefore, it is surprising that despite the number of studies that have examined the organizational and managerial factors affecting export performance, little research has investigated the possible impact of a managers individual values on strategic choice and the export performance of the firm. To address this gap in the literature, the authors examine the impact of managers’ values on the firms customer responsiveness and export performance. In addition, they examine the mediating role of customer responsiveness in the values–export performance linkage. The authors explore the empirical usefulness of the psychic distance construct by examining its direct link with export performance and the extent to which it moderates the relationship between individual values and export performance. Overall, the results suggest that managers’ values significantly influence strategic decisions and the export performance of the firm, highlighting the need for more research attention in this area.

Cultural distance and psychic distance: refinements in conceptualisation and measurement

Cultural distance and psychic distance are two concepts that are widely used in the marketing literature to assess the differences between countries. The purpose of this study is to draw attention of researchers and managers to the general failure in the literature to differentiate between the cultural distance and psychic distance concepts. A critical review of the use of these concepts, outlining their theoretical and methodological properties, shows that a large number of studies use both concepts interchangeably with no clear distinction between them. The concepts are, however, conceptually distinct and address different phenomena. A framework is proposed that allows researchers and managers to recognise the exclusive properties of the two concepts.

The PD scale: a measure of psychic distance and its impact on international marketing strategy

Purpose – Despite considerable research on psychic distance (PD), research into the topic is confounded by a general failure to precisely define and fully operationalize the construct. The purpose of this paper is to develop a new measurement scale to assess psychic distance (the PD scale), and also to investigate the impact of the PD scale on the adaptation of international marketing strategies.Design/methodology/approach – The paper uses data collected by mail questionnaire in a sample survey of 301 export firms. The results were analyzed using structural equation modeling. Various statistical tests show that the results are reliable and valid.Findings – Findings reveal that psychic distance is a higher‐order construct composed of two dimensions: country distance and people distance. The results also indicate that both dimensions of the PD scale are positively and significantly associated with cultural distance and the adaptation of product, promotion, pricing and distribution strategies to the foreign ...

From personal values to creativity: evidence from frontline service employees

Purpose – This paper seeks to examine how personal values and the way employees respond to the organization and the job impact on employee creativity. Specifically, the paper proposes a framework that argues that creativity is a function of the employees personal values, of organizational commitment and customer orientation. Moreover, it also aims to investigate the moderating effects of commitment and customer orientation on the relationship between personal values and employee creativity.Design/methodology/approach – The conceptual model was tested empirically using data collected by questionnaire in a sample of 266 bank employees. Hierarchical multiple regression analysis is relied on to test the hypothesized model.Findings – The empirical results indicate that personal values, organizational commitment, and customer orientation are important drivers of the creativity of frontline employees. In addition, the paper also detected some moderating and mediating effects.Originality/value – The contribution...

Structural equation modelling in marketing and business research

Purpose – Structural equation modelling (SEM) is a method that is very frequently applied by marketing and business researchers to assess empirically new theoretical proposals articulated by means of complex models. It is, therefore, a logical thought that the quality of the new advances in marketing and business theory depends, in part, on how well SEM is applied. This study aims to conduct an extensive review and empirical analysis of a broad variety of classic and recent controversies and issues related with the use of SEM, in order to identify problematic questions and prescribe a compendium of solutions for its suitable application.Design/methodology/approach – The main analyses were conducted on a sample of 191 SEM‐based papers and 472 applications, i.e. all the SEM‐based studies published in four leading marketing journals during the period 1995‐2007.Findings – Despite the maturity of SEM, its application in marketing research still has notable room for improvement. This is a general conclusion bas...

Effects of Export Assistance and Distributor Support on the Performance of SMEs The Case of Portuguese Export Ventures

The presumed effect of export assistance programmes and distributor support on the export performance of SMEs, though intuitively rational, has not been tested or validated in any systematic fashion in the export literature. To address this issue the authors develop a new model, which integrates these two constructs as critical variables affecting export performance. Confirmatory factor analysis and structural equation modeling were used to test hypotheses. The research findings, which are based on a survey of 287 senior managers responsible for international markets, suggest that export assistance programmes and distributor support are significant determinants of export performance. Implications of these findings along with the limitations of the study are discussed. Conséquences de l’aide à l’exportation et du soutien accordé aux distributeurs sur la performance des PME L’exemple des entreprises exportatrices portugaises Carlos M. P. Sousa et Frank Bradley University College Dublin, Irlande Les conséquences présumées qu’ont les programmes d’aide à l’exportation et de soutien accordé aux distributeurs sur les résultats des exportations des PME — bien que intuitivement rationnelles — n’ont été ni éprouvées ni validées de façon systématique dans les documentations portant sur les exportations. Pour résoudre ce problème, les auteurs mettent au point un nouveau modèle, qui intègre ces deux concepts comme variables critiques affectant les résultats des exportations. Pour vérifier les hypothèses avancées, on a eu recours à une analyse factorielle confirmatoire et à une modélisation par équation structurelle. Les résultats de la recherche, s’appuyant sur une enquête réalisée auprès de 287 de cadres supérieurs responsables des marchés internationaux, indiquent que les programmes d’aide aux exportations et de soutien aux distributeurs sont des facteurs déterminants des résultats des importations. On procède à une analyse des implications de ces constatations ainsi que des limites de l’étude. Los efectos de la ayuda a la exportación y apoyo a los distribuidores sobre la actuación de las PYME El caso de las empresas exportadoras portuguesas Carlos M. P. Sousa y Frank Bradley University College Dublin, Irlanda El supuesto efecto de los programas de ayuda a la exportación y apoyo a los distribuidores en los resultados de las exportaciones de las PYME, aunque racional por intuición, no ha sido probado ni validado en forma sistemática en la documentación sobre exportaciones. Para solventar este problema, los autores desarrollan un nuevo modelo el cual integra estos dos constructos. como variables críticas que afectan los resultados de las exportaciones. Para comprobar las hipótesis se utilizó un análisis de factores confirmatorios y una modelización de ecuaciones estructurales. Las conclusiones de la investigación, basadas en una encuesta de 287 altos funcionarios responsables de los mercados internacionales, indican que los programas de ayuda a la exportación y apoyo a los distribuidores son importantes factores determinantes de los resultados de las importaciones. Se analizan las consecuencias de estos resultados junto con las limitaciones del estudio. Auswirkungen von Exporthilfe und Vertriebsunterstützung auf den Erfolg von KMUs Im Fall von portugiesischen Exportunternehmen Carlos M. P. Sousa and Frank Bradley Universitätskolleg Dublin, Irland Die mutmaßlichen Auswirkungen von Exporthilfeprogrammen und Vertriebsunterstützung auf die Exportleistung von KMUs, obwohl augenscheinlich vernünftig, wurde bisher noch nicht in der Exportliteratur systematisch geprüft oder bestätigt. Um sich dieses Themas anzunehmen entwickelten die Autoren ein neues Modell, das diese zwei Konstrukte als kritische Variable mit Auswirkungen auf die Exportleistung vereint. Konfirmatorische Faktorenanalyse und Strukturangleichungsmodelle wurden verwendet um Hypothesen zu testen. Es wurde eine Umfrage unter 287 für internationale Märkte verantwortlichen Führungskräften durchgeführt. Die Umfrageergebnisse weisen darauf hin, dass Exporthilfeprogramme und Vertriebsunterstützung wichtige Bestimmungsfaktoren der Exportleistung sind. Die Implikationen dieser Ergebnisse sowie die Grenzen dieser Studie werden diskutiert.

Research on Export Pricing: Still Moving Toward Maturity

Over the past four decades, there has been a considerable number of studies that have examined the determinants and outcomes of export pricing. However, despite this large volume of studies, the knowledge of the determinants and consequences of export pricing is characterized by a fragmented, diverse, and inconsistent collection of findings that hinders scholarship and practical advancement in the field. A major reason for this absence of clear insights is the lack of synthesis and assimilation of the fragmented knowledge. To address this gap in the literature, the authors review and evaluate 98 articles published between 1971 and 2010. The results indicate that although significant progress has been made in recent years, research on export pricing is still characterized by the lack of a strong theoretical basis, the failure to agree on the relevant determinants of export pricing, and some weakness in research designs and analytical techniques, which may explain the many contradictory and confusing findings in the literature. On the basis of these findings, the authors discuss several implications, and consider directions for further research.

The determinants of export performance: a review of the literature 2006-2014

Purpose The purpose of this paper is to synthesize and evaluate recent studies on determinants of export performance. Design/methodology/approach Using a vote-counting technique this paper reviews 124 papers published between 2006 and 2014 to assess the determinants of export performance. Findings The results indicate that significant progress has been made during these nine years and that: numerous new determinants are identified, data quality and statistical biases have received considerable attention, and interaction and indirect relationships are considered. However, at the same time, the research of export performance is still limited by a lack of synthetic theoretical basis, inconsistent empirical test results, and insufficiency in the research framework and statistical methodologies. Originality/value Export performance has received increasing attention over recent decades, but the area is still characterized by fragmentation and diversity hindering theoretical and practical development. This paper integrates the findings of recent studies on export performance and provides further discussion from both theoretical and methodological aspects, and points out the directions for future research.