In: Ekonomický časopis/Journal of Economics, vol. 57, no. 9
Douglas Dow - Soňa Ferenčíková
Detaily:
Rok, strany: 2009, 837 - 856
Kľúčové slová:
psychic distance, cultural distance, entry mode, joint venture, mar-ket selection, performance, FDI
Typ článku: Vedecký článok / Article
O článku:
The original intention of this paper was to explore how best to measure psychic distance; and more specifically, to test the criterion-related validity of a new set of scales recently made available by Dow and Karunaratna (2006). The empirical setting is inward foreign direct investment (FDI) in Slovakia from 1990 to 2007. The findings indicate that when predicting market selection and performance, a formative index of the new psychic distance scales is a signifi-cantly better predictor variable than the traditionally employed scale based on Hofstede’s (1980) dimensions of national culture. However, for predicting entry mode choice, the results are more ambiguous. This leads us to an unexpected result of our analyses. The classic TCE-based entry mode model does not appear to provide significant predictive power with respect to FDI entry mode choice in Slovakia. The implications of these findings are discussed in detail.
The original intention of this paper was to explore how best to measure psychic distance; and more specifically, to test the criterion-related validity of a new set of scales recently made available by Dow and Karunaratna (2006). The empirical setting is inward foreign direct investment (FDI) in Slovakia from 1990 to 2007. The findings indicate that when predicting market selection and performance, a formative index of the new psychic distance scales is a signifi-cantly better predictor variable than the traditionally employed scale based on Hofstede’s (1980) dimensions of national culture. However, for predicting entry mode choice, the results are more ambiguous. This leads us to an unexpected result of our analyses. The classic TCE-based entry mode model does not appear to provide significant predictive power with respect to FDI entry mode choice in Slovakia. The implications of these findings are discussed in detail.
Ako citovať:
ISO 690:
Dow, D., Ferenčíková, S. 2009. The Measurement of Psychic Distance: Case of Foreign Investors in Slovakia. In Ekonomický časopis/Journal of Economics, vol. 57, no.9, pp. 837-856. 0013-3035.
APA:
Dow, D., Ferenčíková, S. (2009). The Measurement of Psychic Distance: Case of Foreign Investors in Slovakia. Ekonomický časopis/Journal of Economics, 57(9), 837-856. 0013-3035.