It hasn’t been a good weekend if you are a household name with the surname Armstrong. On Friday, Lance Armstrong officially threw in the towel in his fight to maintain the seven Tour de France titles he had won by effectively pleading guilty to using drugs. He thus gained the status of villain or fallen hero. Then yesterday, Neil Armstrong, the first man on the moon died in hospital.
Our reactions to the two Armstrongs underlines how ambiguous we are in conferring hero status to people or to organizations. Continue reading
Psychological distance and international trade
In the 1970s researchers in Sweden starting looking into the concept of psychological distance and how this related to the international development of companies. The basic premise is that we prefer to interact and therefore trade with people who are similar to ourselves. Spanish companies find it easier to trade with South America because of the historical links they share. Similarly, British managers find that they are psychologically closer to their US counterparts than managers in Continental Europe. Continue reading