Spatial and temporal distances in a virtual global world: Lessons from the COVID-19 pandemic

Area of Science:

• International Business Studies
• Organizational Theory
• Economic Geography

Background:

• The COVID-19 pandemic necessitated a re-evaluation of global value creation and organizational strategies.
• Traditional international business (IB) research often focuses on spatial distance, overlooking temporal dimensions.

Purpose of the Study:

• To advance a new conceptualization of distance, encompassing both spatial and temporal separation.
• To analyze the impact of this dual-distance concept on international business theory and activity patterns.
• To explore how varying configurations of spatial and temporal distances influence global integration and firm strategies.

Main Methods:

• Conceptual analysis of distance dimensions (spatial and temporal).
• Theoretical examination of the implications for established international business tenets.
• Illustrative examples of how distance configurations affect value-creating activities.

Main Results:

• Distance is conceptualized as multidimensional, involving both spatial and temporal separation.
• Spatial and temporal distances possess distinct qualities and require separate theoretical consideration.
• The interplay of spatial and temporal distances significantly shapes international business patterns and global integration.

Conclusions:

• A broader understanding of distance, including temporal aspects, is crucial for contemporary international business.
• Firms must adapt strategies to manage both spatial and temporal distances, especially in an increasingly virtual environment.
• Further research attention is needed on the role of time and temporal distance in organizing global value-creating activities.