Entry Mode Choice: Testing New Approaches to Measuring Psychic

While the issue of entry mode choice has been extensively studied for almost two decades, there has been remarkably little investigation into how researchers operationalize two key constructs: psychic distance and international experience. Using a large scale database of Nordic FDI over the mid 1990s, the authors demonstrate that a broader selection of psychic distance scales dramatically increases the ability to predict entry mode selection. Similarly, the authors demonstrate that when a refined approach to measuring international experience, which distinguishes between experience in similar and dissimilar countries, is employed, only culture-specific experience (i.e. experience in countrie