Psychic distance, marketing strategy adaptation and export performance: the role of international experience

Abstract

This study theorises that a performance-enhancing strategic fit between a perceived psychic distance and an export marketing strategy adaptation applies under the boundary conditions of international experience. We model an export marketing strategy as a function of psychic distance and export performance as an outcome of export marketing strategy, moderated by international experience. To test the hypotheses, we carried out a survey of Lithuanian exporting companies that conduct business in the dairy and meat processing industries. The results did not support the existence of the conditional indirect effect of perceived psychic distance on export performance through export marketing strategy adaptation. Unlike the expectation, data indicated that export performance increases with an increase in distribution adaptation, but only: (a) among companies who scored low in the length of experience in an export country and (b) under conditions of low export intensity.