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Exploring relationship satisfaction between global professional service firms and local clients in emerging markets

Author

Listed:
  • Wenyu Dou

    (Department of Marketing, City University of Hong Kong, Kowloon, Hong Kong)

  • Hairong Li

    (Department of Advertising, Public Relations, and Retailing, Michigan State University, USA)

  • Nan Zhou

    (Department of Marketing, City University of Hong Kong, Kowloon, Hong Kong)

  • Chenting Su

    (Department of Marketing, City University of Hong Kong, Kowloon, Hong Kong)

Abstract

Extending the perspective of agency theory, this study incorporates both professional and local knowledge asymmetry into a model of relationship satisfaction between global professional service firms and their local clients. The model also includes learning orientation and adaptation that are theorized to regulate the impact of knowledge asymmetry on goal incongruence, which ultimately affects relationship satisfaction. China was selected as the setting of the study because it is the largest emerging market, has seen double-digit growth of advertising expenditures for the past two decades, and is home to many multinational advertising agencies that have increasingly pursued local clients as revenue sources. Multiple informants from 177 domestic Chinese firms and their multinational advertising agencies were personally interviewed, and the dyadic data were used to test the model. Results show that both types of knowledge asymmetry lead to goal incongruence, which causes client dissatisfaction. The role of learning orientation varies, as does the role of adaptation, in moderating the impact of knowledge asymmetry on goal incongruence and the impact of goal incongruence on relationship satisfaction. Theoretical and managerial implications of the findings are discussed, along with the limitations of the study and future research directions.

Suggested Citation

  • Wenyu Dou & Hairong Li & Nan Zhou & Chenting Su, 2010. "Exploring relationship satisfaction between global professional service firms and local clients in emerging markets," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(7), pages 1198-1217, September.
  • Handle: RePEc:pal:jintbs:v:41:y:2010:i:7:p:1198-1217
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    Cited by:

    1. Da Huo, 2013. "Cluster Analysis of Market Potential in Emerging Markets: A Dynamic Research based on Markov Chain," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 218-231, December.
    2. Leonidou, Leonidas C. & Aykol, Bilge & Fotiadis, Thomas A. & Christodoulides, Paul & Zeriti, Athina, 2017. "Betrayal in international buyer-seller relationships: Its drivers and performance implications," Journal of World Business, Elsevier, vol. 52(1), pages 28-44.
    3. Siqueira, Ana Cristina O. & Priem, Richard L. & Parente, Ronaldo C., 2015. "Demand-side Perspectives in International Business: Themes and Future Directions," Journal of International Management, Elsevier, vol. 21(4), pages 261-266.
    4. repec:eee:joreco:v:40:y:2018:i:c:p:19-30 is not listed on IDEAS
    5. Alicia Rodríguez & María Jesús Nieto, 2016. "Does R&D offshoring lead to SME growth? Different governance modes and the mediating role of innovation," Strategic Management Journal, Wiley Blackwell, vol. 37(8), pages 1734-1753, August.
    6. Ravi Sarathy & Elitsa R. Banalieva, 2014. "Economic Development And Marketing Strategies: A Comparative Lens," Organizations and Markets in Emerging Economies, Faculty of Economics, Vilnius University, vol. 5(1).

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