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Mutual commitment and experiential knowledge in mature international business relationship

  • Chetty, S.
  • Eriksson, K.
Registered author(s):

    This paper examines how market knowledge and market commitment are developed in mature supplier/customer relationships in international markets. It reports the empirical testing of a model of increasing commitment and experiential knowledge development in international business relationships. The assumption is that the connected relationships in a business network are the basis for forming a relationship and it will influence how the focal relationship develops. The model shows the process when a supplier increases his or her knowledge of the business network that a foreign customer is embedded in and what happens as their relationship with the customer becomes mature, stable and profitable. In this situation the firm does not invest as much as it did early on in the relationship but diverts its attention to firms that are more embedded in the local business network context. The model thus explicates a process of transition as a firm moves from one mature relationship to create new relationships as it increases its foreign market involvement.

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    Article provided by Elsevier in its journal International Business Review.

    Volume (Year): 11 (2002)
    Issue (Month): 3 (June)
    Pages: 305-324

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    Handle: RePEc:eee:iburev:v:11:y:2002:i:3:p:305-324
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    1. Homin Chen & Tain-Jy Chen, 1998. "Network Linkages and Location Choice in Foreign Direct Investment," Journal of International Business Studies, Palgrave Macmillan, vol. 29(3), pages 445-467, September.
    2. Desir�e Blankenburg Holm & Kent Eriksson & Jan Johanson, 1996. "Business Networks and Cooperation in International Business Relationships," Journal of International Business Studies, Palgrave Macmillan, vol. 27(5), pages 1033-1053, December.
    3. Desir�e Blankenburg Holm & Kent Eriksson & Jan Johanson, 1996. "Business Networks and Cooperation in International Business Relationships," Journal of International Business Studies, Palgrave Macmillan, vol. 27(4), pages 1033-1053, December.
    4. Gatignon, Hubert & Anderson, Erin, 1988. "The Multinational Corporation's Degree of Control over Foreign Subsidiaries: An Empirical Test of a Transaction Cost Explanation," Journal of Law, Economics and Organization, Oxford University Press, vol. 4(2), pages 305-36, Fall.
    5. Brian Toyne, 1989. "International Exchange: A Foundation for Theory Building in International Business," Journal of International Business Studies, Palgrave Macmillan, vol. 20(1), pages 1-17, March.
    6. Blankenburg Holm, Desirée & Eriksson, Kent, 2000. "The character of bridgehead relationships," International Business Review, Elsevier, vol. 9(2), pages 191-210, April.
    7. William H Davidson, 1980. "The Location of Foreign Direct Investment Activity: Country Characteristics and Experience Effects," Journal of International Business Studies, Palgrave Macmillan, vol. 11(2), pages 9-22, June.
    8. Andrea Bonaccorsi, 1992. "On the Relationship Between Firm Size and Export Intensity," Journal of International Business Studies, Palgrave Macmillan, vol. 23(4), pages 605-635, December.
    9. Brian Toyne & Douglas Nigh, 1998. "A More Expansive View of International Business," Journal of International Business Studies, Palgrave Macmillan, vol. 29(4), pages 863-875, December.
    10. Martin Kilduff, 1992. "Performance and Interaction Routines in Multinational Corporation," Journal of International Business Studies, Palgrave Macmillan, vol. 23(1), pages 133-145, March.
    11. Coviello, Nicole & Munro, Hugh, 1997. "Network relationships and the internationalisation process of small software firms," International Business Review, Elsevier, vol. 6(4), pages 361-386, August.
    12. Kent Eriksson & Jan Johanson & Anders Majkg�rd & D Deo Sharma, 1997. "Experimental Knowledge and Costs in the Internationalization Process," Journal of International Business Studies, Palgrave Macmillan, vol. 28(2), pages 337-360, June.
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