Small Firms Internationalization: Reducing the Psychic Distance Using Social Networks

Global Journal of Business Research, Vol. 10, No. 1, pp. 55-63, 2016

9 Pages Posted: 19 Dec 2016

Multiple version iconThere are 2 versions of this paper

Date Written: 2016

Abstract

This article investigates the role of social networking sites in the internationalization of small businesses. More specifically, we explore the effect social networks have on the level of psychic distance and how these new tools are used in order to reduce the perceived risk and strengthen business relationships. The multiple case study based on a two-year observation period shows that, besides their cost advantage in terms of advertising and communication, social networks support crucial marketing efforts such as the identification of new business opportunities and foster the development of professional and personal relationships with foreign partners. In turn, these tools facilitate and sometimes, accelerate, the internationalization of small businesses by lowering the perceived risks and the psychic distance characterizing new foreign markets.

Keywords: Small Businesses, Social Networks, Relationships, Internationalization, Case Study, Psychic Distance

JEL Classification: M30

Suggested Citation

Arnone, Laurent and Deprince, Elodie, Small Firms Internationalization: Reducing the Psychic Distance Using Social Networks (2016). Global Journal of Business Research, Vol. 10, No. 1, pp. 55-63, 2016 , Available at SSRN: https://ssrn.com/abstract=2825461

Laurent Arnone (Contact Author)

Université de Mons ( email )

B7000

Elodie Deprince

Université de Mons ( email )

B7000

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