How can social networking sites facilitate the internationalisation of the small firm? An investigation of the concept of psychic distance

This article investigates the role of social networking sites in the internationalisation of small businesses. More specifically, we explore the effect social networks have on the level of psychic distance and how these new... [ view full abstract ]

This article investigates the role of social networking sites in the internationalisation 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 internationalisation of small businesses by lowering the perceived risks and the psychic distance characterising new foreign markets.

Keywords: Small businesses, social networks, relationship, internationalisation, case study, marketing