Managing less influence with a better understanding

The Benefit for Low-Income Countries of Understanding Distance as a Field

Bibliographic Data

ID6420899
AuthorsBlessing Mahomva, Helena Barnard (0000-0002-5690-5023)
Year2025
Volume21
Issue4
Pages517-532
Publication date2025-04-11
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueCritical Perspectives on International Business (JOURNAL)
Journal identifiersISSN: 1742-2043 • E-ISSN: 1758-6062
PublisherEmerald Publishing Limited (PUBLISHER • GB)
DOI10.1108/cpoib-08-2024-0087
OpenAlexW4409377459
LanguageEN
References cited49

Purpose In international business research, distance connotes unfamiliarity and misunderstanding. This paper aims to theorize the distance between low-income and higher-income countries, taking as point of departure that low-income countries are generally unimportant business partners of high-income countries, but dependent on the goods, services and markets of many of them. Design/methodology/approach Because low-income countries are dependent upon higher income countries, they have a greater incentive to understand high-income countries than the reverse. Higher income countries not only know little about low-income countries, but among themselves also have varied and often competing interests and concerns. This changes how low-income countries, actors with little influence, make sense of distance. The authors use literature on psychic distance and institutional fields to develop this argument. Findings Rather than managing a series of dyadic distances, low-income countries seek to situate themselves optimally vis-à-vis the range of higher income countries with which they interact. By developing a holistic view of the entire transnational institutional field, they can better navigate and strategically position themselves amongst the more influential high-income countries. Research limitations/implications This work is conceptual, and the authors recommend future research to empirically test their propositions. Social implications This work explains why low-income countries do not necessarily seek aligned interests among higher income counterparts. Originality/value Distance is rarely researched from the perspective of low-income countries. Building on the psychic distance literature, the authors argue that low-income countries have asymmetrically greater motivation and opportunities to overcome distance. This understanding of distance represents a resource for them in conducting business internationally

Economic geography · Economics · Field (mathematics · Political science · Entrepreneurship Studies and Influences · International Business and FDI · Mathematics · Migration, Ethnicity, and Economy

Tools

Open DOI