In this work, ghemawat proposes the cage distance framework that allows firms to consider four dimensions of international distance cultural, administrative, geographic, and economic when planning global expansion. As summarized in table the cage framework, the cage cultural. Cc0 public domain even when people have wellconnected social networks beyond their home cities and across state lines, they are still most frequently interacting with people who are very geographically near. Common currency, for example, boosts trade more than 300%. Create marketing content that resonates with prezi video. Nov 01, 2016 the standard analysis for goods is that each doubling of distance with a trading partner halves trade between them. Distance still matters free download as powerpoint presentation. The information revolution in small business lending and the persistent role of location, 19932003 kenneth p.
Companies routinely exaggerate the attractiveness of foreign markets, and that can lead to expensive mistakes. After documenting these systematic changes, we demonstrate they do not arise from small firms locating differently, consolidation in the banking industry, or biases in the sample. Jun 07, 2018 the internet makes distance less a problem for conducting business, but geography still matters in the digital age. Lecture slides to accompany distance still matters hbr article 2001 slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Distance still matters by pankaj ghemawat pdf download. The internet makes distance less a problem for businesses, but geography still matters in the digital age, explains shane greenstein. Distance matters donald bren school of information and. An analysis of pankaj ghemawats distance still matters.
In this case, distance is defined broadly to include not only the physical geographic distance between countries but also the cultural, administrative currencies, trade agreements, and economic differences between them. Dazzled by the sheer size of untapped markets, they lose sight of the difficulties of pioneering new, often very different territories. The internet makes distance less a problem for conducting business, but geography still matters in the digital age. Companies routinely overestimate the attractiveness of foreign markets. View homework help article 2 distance still matters. After documenting these systematic changes, we demonstrate they do not arise from small firms locating differently, consolidation in the banking industry, or. Distance stiii matters the hard reality of global expansion. A summary of harvards professor pankaj ghemawats influential article. The hard reality of global expansion companies routinely overestimate the attractiveness of foreign markets. Shared identity helps partially distributed teams, but. If you continue browsing the site, you agree to the use of cookies on this website.
Distance still matters, the hard reality of global expansion. A decade has passed, filled with research and technology development relevant to the issues raised in that. The information revolution in small business lending and the persistent role of location, 19932003 feds working paper no. The four dimensions of distance discussed are cultural, administrative, geographic and economic. The hard reality of global expansion cage distance framework distance still matters analyses several factors that impact both success and failure in global expansion strategies.
Also, types of distance affect industries differently. May 1, 2009 gary and judy olsen of the university of california at irvine talk about working in a geographically distributed team. Tool kit companies routinely exaggerate the attractiveness of foreign markets, and that distance still matters can lead to expensive the hard reality of global expansion mistakes. Distance still matters notes by focusing on national gdp, levels of consumer wealth and peoples propensity to consume, cpa country portfolio analysis places all the emphasis on potential sales. Thus, in contrast to petersen and rajan, 2002, this paper provides evidence that distance matters for financial intermediation and the production of soft information when ex post monitoring is not feasible. By contrast, similarities along these dimensions suggest. Distance still matters trade china free 30day trial. Distance still matters, and companies must explicitly and thoroughly account for it when they make decisions about global expansion. Shane greenstein, from harvard business school, explains why. In the 1970s, mit professor thomas allen discovered that the farther apart workspaces are, the less communication there is between them. Mar, 2017 in the 1970s, mit professor thomas allen discovered that the farther apart workspaces are, the less communication there is between them. Summary pankaj ghemawats article, distance still matters. Evidence from municipal bond underwriting abstract we provide evidence of soft information production in investment banking. The remainder of this paper is organized as follows.
Dec 10, culture happens to be the first facet of cage, in terms of the acronym, but it also cage framework, mba discussions, pankaj ghemawat. The idea in brief the core idea the idea in practice putting the idea to work 1 article summary 2 distance still matters. Pdf distance stiii matters the hard reality of global. Article 2 study guide distance still matters key takeaways. The hard reality of global expansion 12 further reading a list of related. By pankaj ghemawat distance still matters presented by kedar gokhale. The distance between small firms and their lenders is increasing, and they are communicating in more impersonal ways.
Why distance still matters in business, despite the internet. A survey of canadian services exports found that each 1 per cent increase in. The standard analysis for goods is that each doubling of distance with a trading partner halves trade between them. Why distance still matters to teams and what to do about it. Business and management submitted by sreiter words 1290 pages 6. In this work, ghemawat proposes the cage distance framework that allows firms to consider four dimensions of international distance cultural, administrative, geographic, and. Distance still matters 3 ghemawat p distance still. The cage framework of distance presented here considers four attributes. Star tv the situation1991 star tv aims to enter asia and target market is top 5% star tv could use cheap english programming 2 nd languageminimize geographical distance by distributing through satellites news. The challenges discussed are dimensions of distance. Distance still matters in business, despite the internet.
Proceedings of the 16th acm international conference on supporting group work shared identity helps partially distributed teams, but distance still matters. Using 2191 municipal bond offerings from 19972001, we find that local investment banks have substantial comparative and absolute. Britain will discover that distance still matters in trade. Often they do not succeed because distance still matters. A decade has passed, filled with research and technology development relevant to the issues raised in that paper. In this work, ghemawat proposes the cage distance framework that. Star tv the situation1991 star tv aims to enter asia and target market is top 5% star tv could use cheap english programming 2 nd languageminimize geographical distance by distributing through satellites news corporation bought out. May 09, 2020 distance still matters ghemawat pdf harv bus rev. The more two countries differ across these dimensions, the riskier the target foreign market. Heres a more rational approach to by pankaj ghemawat evaluating global opportunities. The cultural, administrative, geographic, and economic cage distance framework helps managers identify and assess the impact of distance on various.