Fashion Joins the Digital Revolution : A study on the Impact of Digitalisation in the Swedish High-End Fashion Industry

Abstract: Digitalisation is one of the greatest transformations in modern times and has impacted organisations, industry structures and the society as a whole. It provides new opportunities for fashion firms to interact with different stakeholders and has altered the way firms operate in foreign markets. Based on in-depth interviews with managers of Swedish high-end fashion firms, the aim of the study was to explore what impact digitalisation has on managers’ perceived psychic distance in their international operations. In particular, how managers use digital technologies to obtain and interpret information about supply and demand conditions in foreign markets was examined. The empirical findings indicate that digital technologies are essential for firms today, as they have increased information availability, enhanced information usage and improved interactive communication. This, in turn, leads to a reduction of managers’ perceived psychic distance.