Reducing psychic distance through springboard subsidiaries: an exploratory case study
Author
Magomedova, Nina
Achcaoucaou, Fariza
Miravitlles, Paloma
Publication date
2017ISBN
978-1-78743-719-7
Abstract
The aim of this study is to explore how springboard subsidiaries affect the psychic distance between the headquarters (HQ) of multinational companies (MNCs) and a distant target region. The study applies a single case study methodology to analyse a springboard subsidiary located in Spain that helps its German HQ to pursue opportunities in a psychically distant Latin American region. The findings suggest that springboard subsidiaries help MNCs to reduce the perceived psychic distance between their HQ and a target region due to (1) their intermediate psychic proximity in both directions (i.e. to the HQ and the target region) and (2) their location outside the target region, which makes them somewhat ‘impartial’ and not involved in intra-regional conflicts; the study also shows that the sum of psychic distance stimuli between HQ’s home country –springboard subsidiary’s country and springboard subsidiary’s – Latin American countries is actually smaller than the direct psychic distance between HQ’s home country and Latin American countries. No previous studies have explored the effect of springboard subsidiaries on psychic distance.
Document Type
Chapter or part of a book
Document version
Published version
Language
English
Subject (CDU)
3 - Social Sciences
Keywords
Springboard subsidiary
Psychic distance
Single case study
Pages
22
Publisher
Emerald Publishing Limited
Collection
12
Is part of
Distance in International Business: Concept, Cost and Value (Progress in International Business Research)
Citation
Magomedova, Nina; Achcaoucaou, Fariza; Miravitlles, Paloma. Reducing psychic distance through springboard subsidiaries: an exploratory case study. En: Distance in International Business: Concept, Cost and Value (Progress in International Business Research, Vol. 12). Emerald Publishing Limited, 2017, pp. 471-493. Disponible en: <https://www.emerald.com/insight/content/doi/10.1108/S1745-886220170000012024/full/html>. Fecha de acceso: 25 ene. 2024. DOI: 10.1108/S1745-886220170000012024
This item appears in the following Collection(s)
- Capítols de llibre [28]
Rights
© 2018 Emerald Publishing Limited