When relationship marketing is pursued by the organizations, the physic distance pertains to the range with which the norms and values in the countries of the markets differ from each other. Vast psychic distances can lead to communication difficulties in the international markets while vast geographical distances between the markets can hinder the management of the business by increasing time zone differences.
Hassles and Cunningham in 2004 were also able to point out that the budgetary control of an organization can be increased in multinational enterprises if the psychic distance is increased. However, according to Lee (1998), the cultural aspect of the psychic distance is responsible for influencing opportunism in a positive manner and the exports, of the country, in a negative way. Similarly according to Grady and Lane (1996), the increased psychic distance lads to decreased performance levels for the company and its operations.
The above mentioned approaches only focus on which country to entry. To solve this Andersen & Buvik (2002) developed a relationship approach which uses customer as unit of analysis. Also according to these authors more research should be done on the relationship between the choice of entry and IMS/Foreign partner selection which this dissertation has included in the aims.
These are excerpts of essays please place order for custom essay paper, term papers, research papers, thesis, dissertation, book reports and case studies.