The determinants of export performance: perceived psychic distance and its antecedents

Abstract

Purpose

The Uppsala internationalization model is one of the widely accepted models for the development of exports. This model suggests that the explanation of relations between psychic distance, its antecedents and marketing mix adaptation would lead to successful export practices. Consequently, this study aims to determine the determinants of export performance, antecedents of psychic distance and marketing mix adaptation.

Design/methodology/approach

This study uses a mixed-methods research design in which qualitative and quantitative research methods were used together. The face-to-face interview method was used to identify the psychic distance antecedents. The face-to-face interview was with eight Turkish exporting firms. Based on the data obtained from face-to-face interviews, a scale for measuring the antecedents of psychic distance has been developed and used in the quantitative study. The scales used for measuring marketing mix adaptation, export performance and psychic distance perception, which has both individual and country dimensions, were adapted from the literature. Data were collected from 221 Turkish exporting companies for quantitative research. Structural equation modeling was used to test relationships between the variables.

Findings

As a result of the data analysis of face-to-face interviews, six antecedents of psychic distance were determined. According to the subsequent quantitative research results, it has been determined that employee expertise, which is one of the antecedents of psychic distance, only affects the country dimension of psychic distance perception; the cooperation, institutionalization and international market experience affect both the country and individual dimensions of psychic distance perception. The country and individual dimensions of psychic distance were found to have an impact on the product, price, promotion and distribution dimensions of marketing mix adaptation. Only the product dimension of marketing mix adaption was found to affect export performance.

Practical implications

This study offers a comprehensive perspective for both theoretical and practical studies by discussing various aspects that would help improve the exporting activities of firms within the scope of antecedents of perceived psychic distance.

Originality/value

In this research, a scale was developed for measuring the antecedents of psychic distance, and the variables affecting export performance were analyzed holistically.

Citation

Demirağ, F. and Kayabaşı, A. (2024), "The determinants of export performance: perceived psychic distance and its antecedents", European Business Review, Vol. 36 No. 2, pp. 225-248. https://doi.org/10.1108/EBR-05-2022-0097