Psychic distance revisited: A proposed conceptual framework and research agenda

The concept of psychic distance has had a long but problematic history in the academic study of international business. Although inherently appealing, attempts to empirically validate the theoretical frameworks proposed by early psychic distance scholars have provided mixed results. This has led a number of academics to question the usefulness of the concept. Theoretical advances have been made in recent times with the introduction of revised definitions, but there is still the need for a conceptual framework of psychic distance that unambiguously identifies the determinants of psychic distance and demonstrates the relevance of this concept at the national, firm, and individual level. The present paper proposes a revised definition of psychic distance and posits a conceptual framework of psychic distance that addresses these needs. It then concludes by putting forward a research agenda arising as a consequence of the new conceptual framework.