Background: The internationalization of small and medium-sized enterprises (SMEs) has gained increasing academic attention in recent years; however, established theoretical frameworks, particularly the Uppsala model, were developed in stable, resource-rich Western contexts. These conditions limit their applicability to SMEs in emerging markets, where political instability, information asymmetry, and limited experience are prevalent. In this context, psychic distance is a suitable construct for investigating how managers construct their perceptions of foreign markets in the stages leading up to market entry.  

Purpose: This study aims to understand how managers of Colombian footwear-manufacturing SMEs construct their perception of psychic distance at the pre-entry stage of internationalization, and how this constructed perception shapes their pre-entry decision-making.  

Method:  A qualitative research design inspired by grounded theory was adopted, consistent with a relativist ontology and a social constructionist epistemology. Data were collected through 12 semi-structured interviews conducted with managers of Colombian footwear-manufacturing SMEs between March and April 2026. Data analysis followed an inductive coding process involving open coding, subcategory and category development, and thematic abstraction, culminating in a theoretically integrated model.

Conclusion:  The results yielded a theoretical model based on five themes across three analytical levels, leading to three theoretical contributions. First, the manager’s individual profile moderates the activation, intensity, and direction of the other factors involved in constructing psychic distance. Additionally, an inside-out construction pattern was identified, which assesses internal capabilities rather than market requirements. Second, the institutional conditions of the home country amplify perceived psychic distance asymmetrically, challenging classical frameworks, while regional reputation functions as a bidirectional characteristic that reduces perceived distance. Third, the benefits of prior experience and learning are contingent on direct contact with the market. Furthermore, a paradox was identified in which digital tools reduce psychic distance but do not reduce operational barriers.