Abstract
What has come to be known as psychic distance paradox suggest that entry into low psychic distance markets may improve performance; however, firms doing so may face shocks produced by unforeseen differences that could precipitate failure. In this developmental paper, we draw on the relational resource theory to address psychic distance contradiction, by exploring the impact of CQ on psychic distance – focusing on motivational and metacognitive dimensions. In achieving this, the study aims to test 5 hypotheses, and analyse 228 survey data gathered from participants in the Nigerian automobile industry. The hypotheses to be tested are: H1: motivational CQ is negatively associated with psychic distance; H2: metacognitive CQ is negatively associated with psychic distance; H3: motivational CQ is positively associated with relational performance; H4: metacognitive CQ is positively associated with relational performance, and H5: psychic distance is negatively associated with relational performance. Based on the analysis of the above hypotheses, the findings and implications of the study will be discussed.