Why Does Psychic Distance Inhibit International Buyer–Supplier Relationships?

Silviu Horia Tierean, Guido A.J.M. Berens

Research output: Chapter in Book/Report/Conference proceedingChapter (peer-reviewed)

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Abstract

In spite of technological advances and the removal or reduction of tariffs and other barriers to trade, international buyer-supplier relationships often struggle. In this conceptual paper, we examine how purchase intentions are influenced by the effects of the psychic distance between the countries where the buyer and the supplier reside. We look into the causal mechanism through which the psychic distance between the buyer and the supplier influences the extent to which the two will enter a business relationship. Two causal pathways are proposed, a more emotional pathway, through organizational identification, as predicted by the psychological distance theory, and a more rational pathway, through trust and expected relationship quality, as predicted by internationalization theory.
Original languageEnglish
Title of host publicationDistance in International Business: Concept, Cost and Value
EditorsAlain Verbeke, Jonas Puck, Rob van Tulder
PublisherEmerald Publishing
Pages207 - 222
Number of pages16
ISBN (Electronic)978-1-78743-718-0
ISBN (Print)978-1-78743-719-7
Publication statusPublished - 2017

Publication series

NameProgress in International Business Research
PublisherEmerald Publishing
Volume12
ISSN (Print)1745-8862

Fingerprint

Buyer-supplier relationships
Psychic distance
Pathway
Suppliers
Buyers
Technological advances
Organizational identification
International trade
Emotion
Tariffs
Internationalization
Business relationships
Purchase intention
Psychological
Relationship quality

Cite this

Tierean, S. H., & Berens, G. A. J. M. (2017). Why Does Psychic Distance Inhibit International Buyer–Supplier Relationships? In A. Verbeke, J. Puck, & R. van Tulder (Eds.), Distance in International Business: Concept, Cost and Value (pp. 207 - 222). [9] (Progress in International Business Research; Vol. 12). Emerald Publishing.
Tierean, Silviu Horia ; Berens, Guido A.J.M. / Why Does Psychic Distance Inhibit International Buyer–Supplier Relationships?. Distance in International Business: Concept, Cost and Value. editor / Alain Verbeke ; Jonas Puck ; Rob van Tulder. Emerald Publishing, 2017. pp. 207 - 222 (Progress in International Business Research).
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Tierean, SH & Berens, GAJM 2017, Why Does Psychic Distance Inhibit International Buyer–Supplier Relationships? in A Verbeke, J Puck & R van Tulder (eds), Distance in International Business: Concept, Cost and Value., 9, Progress in International Business Research, vol. 12, Emerald Publishing, pp. 207 - 222.

Why Does Psychic Distance Inhibit International Buyer–Supplier Relationships? / Tierean, Silviu Horia; Berens, Guido A.J.M.

Distance in International Business: Concept, Cost and Value. ed. / Alain Verbeke; Jonas Puck; Rob van Tulder. Emerald Publishing, 2017. p. 207 - 222 9 (Progress in International Business Research; Vol. 12).

Research output: Chapter in Book/Report/Conference proceedingChapter (peer-reviewed)

TY - CHAP

T1 - Why Does Psychic Distance Inhibit International Buyer–Supplier Relationships?

AU - Tierean, Silviu Horia

AU - Berens, Guido A.J.M.

PY - 2017

Y1 - 2017

N2 - In spite of technological advances and the removal or reduction of tariffs and other barriers to trade, international buyer-supplier relationships often struggle. In this conceptual paper, we examine how purchase intentions are influenced by the effects of the psychic distance between the countries where the buyer and the supplier reside. We look into the causal mechanism through which the psychic distance between the buyer and the supplier influences the extent to which the two will enter a business relationship. Two causal pathways are proposed, a more emotional pathway, through organizational identification, as predicted by the psychological distance theory, and a more rational pathway, through trust and expected relationship quality, as predicted by internationalization theory.

AB - In spite of technological advances and the removal or reduction of tariffs and other barriers to trade, international buyer-supplier relationships often struggle. In this conceptual paper, we examine how purchase intentions are influenced by the effects of the psychic distance between the countries where the buyer and the supplier reside. We look into the causal mechanism through which the psychic distance between the buyer and the supplier influences the extent to which the two will enter a business relationship. Two causal pathways are proposed, a more emotional pathway, through organizational identification, as predicted by the psychological distance theory, and a more rational pathway, through trust and expected relationship quality, as predicted by internationalization theory.

M3 - Chapter (peer-reviewed)

SN - 978-1-78743-719-7

T3 - Progress in International Business Research

SP - 207

EP - 222

BT - Distance in International Business: Concept, Cost and Value

A2 - Verbeke, Alain

A2 - Puck, Jonas

A2 - van Tulder, Rob

PB - Emerald Publishing

ER -

Tierean SH, Berens GAJM. Why Does Psychic Distance Inhibit International Buyer–Supplier Relationships? In Verbeke A, Puck J, van Tulder R, editors, Distance in International Business: Concept, Cost and Value. Emerald Publishing. 2017. p. 207 - 222. 9. (Progress in International Business Research).