The Psychic Distance Measure: An Empirical Re-Assessment

Cultural Distance is one of the most often utilized concepts in international business. The present conceptualisation in empirical research however raises serious concerns. This study challenges current practice in particular by arguing (a) psychic not cultural distance will determine managerial behaviour, (b) other than commonly assumed, psychic distance is asymmetric in a sense that the distance A to B will be for most parts different than from B to A. Empirical support for these propositions is thought via a standardized questionnaire among the worlds 25 largest countries.

Development Trust Research Fund