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Journal of International Business Studies

, Volume 33, Issue 3, pp 515–532 | Cite as

Psychic Distance and Organizational Performance: An Empirical Examination of International Retailing Operations

  • Jody Evans
  • Felix T. Mavondo
Article

Abstract

We develop a reconceptualization and operationalization of psychic distance that broadens the concept. We then empirically test this operationalization and investigate the relationship between psychic distance and organizational performance. Our results suggest that psychic distance, as a summary construct, explains a significant proportion of the variance in financial performance and strategic effectiveness. However, disaggregation of the construct substantially increases its explanatory power. The results also support a psychic distance paradox, where psychic distance has a positive relationship with organizational performance.

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Copyright information

© Academy of International Business 2002

Authors and Affiliations

  • Jody Evans
    • 1
  • Felix T. Mavondo
    • 2
  1. 1.Melbourne Business School
  2. 2.Monash University

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