Article Details
  • Published Online:
    November  2024
  • Product Name:
    The IUP Journal of Marketing Management
  • Product Type:
    Article
  • Product Code:
    IJMM051124
  • Author Name:
    Chhagan Donode, Venugopal Rao, Sunny Bose and Vikas Gautam
  • Availability:
    YES
  • Subject/Domain:
    Management
  • Download Format:
    PDF
  • Pages:
    98-123
Effect of Cosmopolitanism and Country Image on Psychic Distance: Evidence from Nordic Region and East Europe
Abstract

Cognitive aspects like cosmopolitanism, product-related country image, people-related country image and psychic distance plays an important role in international buyer-seller relationships. Mixed evidence on effect of psychic distance and relationship development have advocated for extensive research. The paper argues that in the presence of cosmopolitanism and country image, effect of psychic distance can be alleviated. This study attempts to understand that cosmopolitanism and psychic distance are negatively related. Similarly, product-related country image and people-related country image are negatively associated with psychic distance. Structural equation model analysis with 566 responses from medical device import managers have provided empirical support to these arguments. The study found that cosmopolitanism and psychic distance are positively related. Presence of higher level of product-related country image and psychic distance are minimal. This study further strengthens the understanding about psychic distance and factors affecting it

Introduction

Information and knowledge sharing have important implications for international business expansion and internationalization of companies. When business transactions go beyond the local boundaries, managerial behaviors like cosmopolitanism, country image and psychic distance play an important role in setting long-term and successful business relationship between the business partners. Establishment of strong relations with business partners is an integral component of entrepreneurial success. Managers’ cognitive aspects like cosmopolitanism, product-related country image, people-related country image and psychic distance play an important role in the development of better relationships.