The Effect of Psychic Distance Stimuli and Psychic Distance on International Marketing Strategy Adaptation and Export Performance

The Effect of Psychic Distance Stimuli and Psychic Distance on International Marketing Strategy Adaptation and Export Performance

This paper clarified the ambiguity in the literature regarding psychic distance by refining its conceptualization, operationalization, and measurement. It empirically investigated psychic distance in a more inclusive manner that involves its antecedents (i.e. psychic distance stimuli), marketing program adaptation, and performance outcomes. The results of the study revealed that psychic distance stimuli are positively associated with psychic distance. Furthermore, psychic distance positively influences marketing program adaptation. The results also demonstrated that psychic distance mediates the relationship between psychic distance stimuli and marketing program adaptation, and that marketing program adaptation is positively associated with export performance. Future research agenda were suggested.