The equivalence of single-item scales of psychic distance: A test in Brazil

Angela Da Rocha,Otavio Figueiredo,Jorge Ferreira Da Silva

doi:10.4013/base.2012.94.01

Abstract

Despite the broad acceptance of the concept of psychic distance, problems related to measuring the construct have persisted in empirical studies. Although researchers have developed and used a variety of instruments, no study has, thus far, concerned itself with making a comparative evaluation for the purpose of assessing their equivalence. The present study sought to evaluate several single-item scales to measure psychic distance as a summary construct. Four data collection instruments in the literature were identified, and applied to a final sample of 365 university students. Approximately one fourth of the sample answered each questionnaire. A range of statistical tests were carried out in order to identify the features of the respective instruments as well as to assess their equivalence and validity. The results enabled to compare features and showed that only two of the instruments produced equivalent results. All of the scales correlated strongly; however, the performance of the scales in the tests did vary. The Stottinger and Schlegelmilch (1998) scale has the capacity to be used with a greater range of statistical tests and presented superior results in practically all of the tests carried out. It is the scale recommended to researchers wishing to utilize single-item measures of psychic distance. Key words: psychic distance, measurement scales, summary construct, single-item scales.

Highlights

Operating in foreign markets poses uncertainty and risk.The Uppsala model, an exponent of behavioral theories on firm internationalization, was built based on a particular vision of how uncertainty and risk impacts internationalization decisions (Johanson and Vahlne, 1977; Figueira-de-Lemos et al, 2011)
The phenomenon of psychic distance has attracted the attention of researchers in the area of International Business ever since Beckerman (1956) posited a behavioral factor related to the way in which relations between international suppliers and buyers were established and maintained, a concept he referred to as psychic distance
The notion of psychic distance as a sum of discrete factors has received more support in the literature (Smith et al, 2011). For followers of this approach, psychic distance would be defined as an aggregate measure of the difference factors between the country of origin and the foreign country. We argue that these two different conceptualizations are essentially irreconcilable, and that they imply the use of different methods for measuring psychic distance

Summary

Introduction

The Uppsala model, an exponent of behavioral theories on firm internationalization, was built based on a particular vision of how uncertainty and risk impacts internationalization decisions (Johanson and Vahlne, 1977; Figueira-de-Lemos et al, 2011). The second aspect of the model proposes that the sequence of penetrating external markets could be constrained by the phenomenon of psychic distance. Hallén and Wiedersheim-Paul (1993) saw two components of the construct: different perceptions of needs and different perceptions of offers They defined psychic distance as “a measure of the difficulty a seller has to perceive or estimate the needs of a buyer or the corresponding difficulty a buyer experiences in perceiving the seller’s offer” From a business perspective, Fletcher and Bohn (1998, p. 49) defined psychic distance as “this willingness (or lack thereof) to undertake business in specific overseas markets.”

Methods

Results

Conclusion