Entry in a Psychically Distant Market: Finnish Small and Medium-sized Software Firms in Japan
Ojala, A. (2008). Entry in a Psychically Distant Market: Finnish Small and Medium-sized Software Firms in Japan. European Management Journal, 26(2), 135-144. https://doi.org/10.1016/j.emj.2007.09.001
Julkaistu sarjassa
European Management JournalTekijät
Päivämäärä
2008Tekijänoikeudet
© Elsevier. This is an electronic final draft version of an article whose final and definitive form has been published in European Management Journal by Elsevier.
This paper investigates the market entry and entry mode choice of eight small and medium-sized
Finnish software firms in the Japanese market. The findings in this study reveal that, despite of
the psychic distance between Finland and Japan, most of the firms entered Japan at a very early
stage of their internationalization process by using direct entry modes. This was mainly due to
the market size, sophisticated industry structure, and requirements for intensive cooperation with
the customers during the sales process. The firms were able to overcome psychic distance by
hiring local employees and western managers who already had working experience in the
Japanese market. This finding indicates that psychic distance is based on a manager’s personal
experiences and feelings about how distant a country is rather than on cultural differences
between the countries.
Julkaisija
ElsevierISSN Hae Julkaisufoorumista
0263-2373Julkaisu tutkimustietojärjestelmässä
https://converis.jyu.fi/converis/portal/detail/Publication/17761228
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