Does Psychic Distance Moderate the Market Size-Entry Sequence Relationship?

An analysis of 924 foreign market entries made by a sample of Chinese exporters reveals that psychic distance moderates the relationship between foreign market size and entry sequence. In doing so, this study challenges the extant hypothesis that the establishment of foreign operations conforms to a simple pattern of increasing psychic distance to markets. The findings also reveal that psychic distance is asymmetrical in nature, and that assessments made by sellers and their buyers are inherently inequivalent.