| Abstract [eng] |
Nowadays, Lithuanian exporting firms are forced to search for business opportunities in foreign distant countries, as close markets are small and competitive, BREXIT and COVID-19 are limiting export amounts to EU countries and main export country, namely Russia, is facing instable political and economic situation. However, firms that perform export operations in distant countries are facing with challenges and constraints, resulting from cultural, business, political system, economic, geographic and other various differences between countries, that create psychic distance, thus affecting the results of export activities. International business and marketing literature widely analyzed psychic distance impact on export performance, meanwhile, the results were inconsistent. Moreover, studies identified that psychic distance as a single element fails to explain its impact on export performance and identified that relationship mainly depends on various firm’s characteristics, referring to size, resources and international experience. At the same time, scientific literature presented contradictory conclusions on explaining firm’s international experience role on the link between psychic distance and export performance; moreover, a gap of studies in Lithuanian context were identified, thus requiring additional investigations in this field. This empirical investigation aims to evaluate psychic distance impact on export performance in terms of firm’s international experience role in Lithuania context, corresponding to the following research objectives: 1. To expose the importance for the link between psychic distance, export performance and firm’s international experience. 2. To analyze the theoretical preconditions for the link between psychic distance, export performance and firm’s international experience. 3. To develop a theoretical model for the link between psychic distance, export performance and firm’s international experience. 4. To test empirically the theoretically proposed model in order to identify psychic distance impact on export performance in terms of firm’s international experience role, considering Lithuanian country context, and propose recommendations for exporting firms. The research was performed by employing quantitative data, that was collected from 44 Lithuanian exporting firms, operating in food industry. Moreover, managers were requested to indicate one of their export countries they perceive as distant and one as close in terms of psychic distance, corresponding that 33 different export countries were included in the research. Additionally, CAGE online tool was employed, that revealed the nature of psychic distance in terms of individuals’ perceived differences. Thereafter, bivariate as well as multivariate statistical methods were applied to analyze the collected quantitative data, referring to the identification of positive psychic distance impact on export performance, thus confirming existence of “psychic distance paradox” in food industry and Lithuanian context. These results presented, that export activities are more successful in distant markets of the following reasons: high level of managers comprehensive preparation for export activities, lower level of competition and higher purchase power. Finally, moderation analysis was performed to investigate firm’s international experience role on the link between psychic distance and export performance, revealing a positive effect on achievement of strategic goals and satisfaction with export performance under low firm’s international experience (scope) conditions, that was captured in terms of number of countries firm is exporting. This outcome presented, that firms achieve better results from export activities while working with a smaller number of export countries. Further, negative affect of psychic distance on satisfaction with export performance under high level of firm’s international experience (scope) was identified, indicating that firms fail to generate good results of export activities while working with many export countries. The research results were contradictory with proposed hypotheses, thus concluding that firms achieve better results of export activities in distant countries under low firm’s international experience (scope) in Lithuania and food industry context. |
