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The purpose of this paper is to investigate the extent to which the geographical location of and thus the geographical distance between buyer and supplier impact on the efficacy of purchasing practices (i.e. strategic purchasing management, tactical purchasing management, relational purchasing management) in terms of operational performance.

The authors utilise cross-country data collected through the International Purchasing Survey group across a variety of countries and industry sectors. The authors conduct exploratory factor analysis to assess construct validity and regression analysis to test the varying effects of purchasing practices on operational performance. The authors split the sample to compare potential differences in the efficacy of purchasing practices between buyers and suppliers through geographical characteristics.

The results indicate that the efficacy of purchasing practices does indeed vary depending on differences in geographical location. Specifically, the authors identify that in cases where the buyer and supplier are located in the same country tactical and relational purchasing tools have a positive impact on operational performance. However, in cases where they are situated in different countries none of the purchasing tools seems to significantly improve operational performance.

Research that has taken a cross-country perspective on the efficacy of supply chain practices is surprisingly sparse. Since most supply chains are becoming more and more global it is important to consider the geographical location of the supply chain members when assessing the performance benefits of supply chain practices such as purchasing tools. Thus, the authors introduce and test the concept of geographical distance on the efficacy of purchasing practices at the dyadic level. To test the implications of geographical distance for purchasing practices the authors use a large-scale cross-country survey.

The purpose of this paper is to examine whether geographical distance or economic distance offers greater diversification benefits in the UK office market.

The real estate investment data for this study come from the Investment Property Databank analysis “UK Quarterly Key Centres Q2 2015”. The author measures the geographical distance between the City of London and 27 local authorities (LAs) by road distance. The author used the market size and employment structure of the LAs relative to the City of London to calculate economic distance.

The results show that LAs that are classified on their economic distance show significant negative office rental growth correlations with the City of London. In contrast, geographical distance shows no relationship. Results are consistent for the overall sample period and for various periods.

Spatial diversity is a fundamental tenet of real estate portfolio management and the results here show that it is better to diversify by across office markets in the UK using the economic attributes of LAs rather than the physical distance between locations.

This is one of only two papers to explicitly examine whether economic distance or geographical distance leads to significantly lower rental growth coefficients between locations in office markets and the first in the UK.

The purpose of this study is to analyse the role of relational power/dependent asymmetries and symmetries in shaping socially responsible supply chain management, whilst also examining how these issues are moderated by geographical distance between buyer and supplier.

The study draws on data from 339 buyer‐supplier relationships, and the authors use a set of regression models to test their hypotheses.

Joint dependency positively influences socially responsible supply chain management, whilst supplier power constrains it. Both joint dependency and buyer power become increasingly important determinants of socially responsible supply chain management as geographic distance increases.

Further work is needed to examine the conditions under which organisations will exercise their power advantage or their joint dependence position to improve socially responsible processes in the supply chain, as there may be situations where the buyer chooses not to exercise their power positions.

The authors' results indicate that jointly dependent relationships create the best conditions for socially responsible supply chain management, but they also find that supplier power advantage can constrain such initiatives.

This is the first paper to systematically analyse the implementation of socially responsible supply chain management, within a model that considers power a/symmetric positions of the buyer‐supplier relationship, and the role of geographical distance as a moderating influence on these power positions.

“It should also be noted that the objective of convergence and equal distribution, including across under-performing areas, can hinder efforts to generate growth. Contrariwise, the objective of competitiveness can exacerbate regional and social inequalities, by targeting efforts on zones of excellence where projects achieve greater returns (dynamic major cities, higher levels of general education, the most advanced projects, infrastructures with the heaviest traffic, and so on). If cohesion policy and the Lisbon Strategy come into conflict, it must be borne in mind that the former, for the moment, is founded on a rather more solid legal foundation than the latter” European Commission (2005, p. 9)Adaptation of Cohesion Policy to the Enlarged Europe and the Lisbon and Gothenburg Objectives.

The purpose of this paper is to study the optimization of the geographical location of a network of points of sale, so that each retailer can have access to a potential geographic market. In addition, the authors study the importance of the distance variable in the commercial viability of a point of sale and a network of points of sale, analysing if the best location for each point (local optimum) is always the best location for the whole (global optimum).

Location-allocation models are applied using p-median algorithms and spatial competition maximization to analyse the actual journeys of 64,740 car buyers in 1240 postal codes using a geographic information system (GIS) and geomarketing techniques.

The models show that the pursuit of individual objectives by each concessionaire over the collective provides poorer results for the whole network of points of sale when compared to coordinated competition. The solutions provided by the models considering geographic and marketing criteria permit a reduction in the length of journeys made by the buyers. GIS allows the optimal control of market demand coverage through the collaborative strategies of the supplying retailers, in this case, car dealerships.

The paper contributes to the joint research of geography and marketing from a theoretical and practical point of view. The main contribution is the use of information on actual buyer journeys for the optimal location of a network of points of sale. This research also contributes to the analysis of the correlation between the optimum local and optimum global locations of a commercial network and is a pioneering work in the application of these models to the automotive sector in the territorial area of the study.

The purpose of this paper is to investigate market entry decisions of the US software SMEs by analyzing the impact of the most obvious factors (cultural distance, geographical distance, country risk, and three market size variables) in traditional internationalization theories to target country selection. By investigating the influence of these commonly cited macro‐level factors, this study proposes the best indicator for market entry decisions of the US small and medium‐sized software firms.

This study uses a quantitative research approach applied to a sample of 100 US small and medium‐sized software firms.

Empirical findings in this study indicate that vertical (software) market size in a target country is the best single indicator for market entry decision and in themselves explain 63 percent of market entries. Thus, the findings in this study suggest that the vertical market size gives a better explanation for market entry decisions of software SMEs than the earlier widely used variables.

Integrating earlier findings related to firm‐level factors with findings of macro‐level factors will help theory development and will facilitate obtaining a more holistic view of internationalization of knowledge‐intensive SMEs.

Findings in this study imply that managers should take an active role when they develop network relationships for the market entry. If a firm takes a passive role in networking, it might lose market opportunities available in the leading markets and end up in countries where the real market potential is low.

This paper highlights vertical market size, which has been largely ignored in earlier studies, as the most important indicator for international market entry decision.

The purpose of this paper is to introduce a model that explores various possible determining factors in the rate of franchising among emerging nations. Emerging markets are some of the fastest growing economies in the world; moreover, the countries they represent are undergoing substantial economic transformations. Yet despite all this, little is known about the factors influencing country selection for expansion into these markets. In an attempt to enhance the knowledge that managers and scholars have on franchising expansion, the present study examines how market conditions may constrain diffusion of franchising into emerging markets. They are: geographical distance; cultural distance; uncertainty avoidance; individualism; political stability, and corruption. The author also controlled for gross domestic product, the efficiency of contract enforcement, and nascent entrepreneurship.

This study uses a quantitative approach applied to a sample of 63 Spanish franchisors with 2,836 franchisee outlets operating across the emerging countries.

Results conclude that geographical distance, uncertainty avoidance, individualism, political stability, corruption, gross domestic product, efficiency of contract enforcement, and nascent entrepreneurship are able to constrain the spread of franchising across emerging nations.

This study provides readers with a general overview of the current state of global franchising diffusion overseas. Results obtained in this study are useful for understanding and predicting the demand for franchising in emerging countries.

The present manuscript develops and tests a model that can be useful not only to academics interested in broadening their knowledge regarding global franchising, but also to firm managers wanting to establish new outlets in emerging nations. Thus, franchisors may use the results of this study as a starting point for identifying the emerging regions whose characteristics best meet their needs of expansion.

This paper explores how certain market conditions may drive international diffusion of franchising into emerging markets. The scant theoretical or empirical attention given to this topic has usually been examined from a US base and focused on developed markets. To fill this gap, the present study analyzes the international spread of the Spanish franchise system, which since 2008 has ranked fifth worldwide in terms of both the number of franchisors and the quantity of franchisee outlets across emerging markets.

The purpose of this paper is to examine how headquarters’ managers perceive – cultural, administrative, geographic and economic (CAGE) – distance between countries and its influence on the strategy of international subsidiaries.

This study applies the transaction cost and behavioural theory and presents an exploratory and qualitative methodology approach through six semi-structured in-depth interviews to evaluate managers’ perceptions of distance between countries.

The research findings show that cultural and economic distances indeed have a major influence on subsidiary strategy and a smaller impact of administrative and geographic dimensions, which results into forced changes on the marketing-mix, i.e. product, price, design and brand, as well as on the level of autonomy granted to foreign subsidiaries.

The limitation is related to the home country and the entry mode of foreign direct investment. The findings presented here reflect the nature and behaviour of Portuguese companies with subsidiaries.

The research provides recommendations for managers to be aware of the influence of more than one dimension of distance between countries to improve their decision-making of standardisation-adaptation strategy for foreign subsidiaries. Furthermore, the study stresses that managers’ perceptions may lead to the conclusion that proximity and knowledge of foreign markets does not make international business easier.

This empirical research not only tests the transaction cost theory and behavioural theory on managers’ decisions to invest abroad but also promotes organisational changes to achieve the suitable strategy for international subsidiaries. The study contributes to the area of international business by positing six research propositions concerning distance between countries to be tested in future studies.

The purpose of this paper is to explore the importance to international trade of impediments related to, first, geographic distance, such as freight and other costs related to the movement of physical goods, and second, “psychic distance”, such as the costs and difficulties of transferring and interpreting the information necessary to effect international transactions.

The paper highlights that psychic distance perceptions between countries are not symmetric and that both exporters’ and importers’ perceptions are important. The empirical analysis covers international trade in three categories of goods among 25 major trading nations for the period 1962-2008, employing structural equation modeling, incorporating the mutual interdependence of the distance measures.

Exporters’ perceptions are more important for trade in differentiated products than for standardized goods, which conversely are more strongly influenced by those of importers. Over time, the impact of both types of psychic distance has declined due to the dramatic improvements in communication and information technologies of recent decades. International markets have thereby become increasingly transparent, facilitating the matching of geographically proximate buyers and sellers in order to minimize transportation costs. These changes fundamentally affect the competitive landscape both for firms that seek to market their goods and services internationally and for domestic firms that face new and more intense competition from foreign rivals.

The paper employs simultaneously a statistical methodology novel to the field and – for the first time in the literature – asymmetric measures of psychic distances as perceived by importers and exporters, respectively. Applying the methodology to different categories of goods demonstrates long-term trends in the differential impact of geographic and psychic distances.

This paper explores whether and what kind of distance can be considered a relevant factor for managers of multinational enterprises (MNEs). In the so-called era of globalization, traditional measures such as geographical, cultural or psychic distance have become less relevant or surrounded by growing ambiguity. Instead, institutional distance, governance or administrative distance have been introduced as variables in understanding success or failure of MNEs. Relative institutional distance, thereby, proves more important than absolute distance. This paper argues that further advances in international management studies critically depend on whether it is possible to, first, move the study of internationalization from ‘factors’ to ‘actors’ and, secondly, add societal relevance to managerial relevance. Now and in the future, therefore, two final dimensions of distance are increasingly relevant: stakeholder distance and normative/development distance.