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
Date Written: 2016
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
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