The integration of market‐scanning activities: effects of market distance

An increasing number of small firms are moving into export operations. This paper reports the results of a study that examined the influence of market distance on managers’ choosing between use of in‐house expertise (integration) or external sources to obtain foreign market information. Market distance is defined as the sum of factors that affect the flow of information from and to the foreign market. Findings indicate that increased market distance leads to greater reliance on external sources (less integration) for market information.