Psychical distance in the internationalisation process of micro and small enterprises

Abstract

Despite the development of new technologies and “flattening of the world”, psychical distance is a relevant factor in the internationalisation process of micro and small enterprises. This article indicates the importance of psychical distance in the internationalisation process of activities performed by companies of the SME sector, with particular focus put on micro and small enterprises. The multidimensional nature of the concept of distance in the internationalisation process was presented using the CAGE model (cultural, administrative, geographical, economic). The article discusses the concept of psychical distance and stage internationalisation theory in the context of the fundamental Uppsala model. Moreover, the article indicates risk categories of international operations and its impact on the scale of psychical distance in the internationalization of activities.