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
Published in
European Management JournalAuthors
Date
2008Copyright
© 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.
Publisher
ElsevierISSN Search the Publication Forum
0263-2373Publication in research information system
https://converis.jyu.fi/converis/portal/detail/Publication/17761228
Metadata
Show full item recordCollections
Related items
Showing items with similar title or keywords.
-
Internationalization of knowledge-intensive SMEs: The role of network relationships in the entry to a psychically distant market
Ojala, Arto (Elsevier, 2009)Current research emphasizes the role of extant network relationships in the international development of SMEs. Inevitably, these relationships are there, most likely, to provide linkages with and facilitate entry into ... -
Entry into Geographically and Psychically Distant Foreign Markets by Small and New Ventures
Ojala, Arto; Oviatt, Benjamin (2008) -
Geographic, cultural, and psychic distance to foreign markets in the context of small and new ventures
Ojala, Arto (Elsevier, 2015)More often than one might expect, small and new ventures, which already suffer from few resources and a lack of industry legitimacy, take on the additional uncertainties of entry into foreign markets. Some of these foreign ... -
Digital transformation through e commerce in Finnish small and medium sized enterprises : a multi-case study
Peltola, Olli (2022)Digitaalinen transformaatio verkkokaupan kautta on ollut suosittu tutkimusaihe jo yli vuosikymmenen ajan. Viimeaikainen Covid-19-pandemia vauhditti monien yritysten verkkokauppakehitystä, sillä ne joutuivat siirtymään ... -
Internalization of Finnish small- and medium-sized enterprises providing professional services to Russia
Salii, Elena (2019)The topic of this master‟s thesis is the entry of small- and medium-sized Finnish companies providing professional services, to the Russian market. Small- and medium-sized enterprises (SMEs) are the vital part of Finnish ...