Working Papers, Department of Business Studies, Uppsala University
No 1998:3:
Mutual commitment and experiential knowledge in international business relationships
Sylvie Chetty and Kent Eriksson
Abstract: Numerous studies have identified various patterns of
behaviour by firms developing international business relationships, but
little attention has been devoted to empirical studies of the dynamic
processes within these international business relationships. This paper
contributes towards a better understanding of how market knowledge and
market commitment are developed in supplier/customer relationships in
international markets. It reports the empirical testing of a dynamic model
of increasing commitment and experiential knowledge development in
international business relationships. The model shows that the dynamics of
experiential knowledge generation seem to take place mainly in the mutual
relationship development, not so much within the individual firms that
develop the relationship. The dynamics of the model are that a domestic
supplier replaces his business relationships with existing customers for
other business relationships with customers that are more embedded in the
foreign market. This process shows how the supplier’s increased knowledge
of the business network that a foreign customer is embedded in makes it
possible for the supplier to overstep the customer and deal with firms that
are more embedded in the local market. The model thus explicates a process
of increasing foreign market involvement.
Keywords: Marknadsföring Internationell; Business relationships; Market knowledge; Market commitment; (follow links to similar papers)
35 pages, 1998
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