The impact of institutional impediments and information and knowledge exchange on SMEs' investments in international business relationships

International Business Review

Volumn 19, Issue 6, 2010, Pages 548-561

  Jonsson, Sara ^a   Lindbergh, Jessica ^a  

^a ROYAL INSTITUTE OF TECHNOLOGY   (Sweden)

Author keywords

Information and knowledge exchange; Institutional impediments; International business relationships; Relationship specific investments (RSI); Small and medium sized enterprises (SMEs); Structural equation modeling (SEM)

Indexed keywords

EID: 77956910140     PISSN: 09695931     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.ibusrev.2010.04.002     Document Type: Article

References (108)

1. Afuah A. Innovation management: Strategies, implementation, and profits 1998, Oxford University Press, New York.
2. Alchian A.A., Demsetz H. Production, information costs, and economic organization. The American Economic Review 1972, 62(5):777-795.
3. Anderson J.C., Gerbing D.W. Structural equation modeling in practice: A review and recommended two-step approach. Psychological Bulletin 1988, 103(May):411-423.
4. Anderson E., Weitz B. The use of pledges to build and sustain commitment in distribution channels. Journal of Marketing Research 1992, 29(1):18-34.
5. Asanuma B. Manufacturer-supplier relationships in Japan and the concept of relation-specific skill. Journal of the Japanese and International Economies 1989, 3:1-30.
6. Autio E., Sapienza H.J., Almeida J. Effects of age at entry, knowledge intensity, and imitability on international growth. The Academy of Management Journal 2000, 43(5):909-924.
7. Bagozzi R.P., Yi Y. On the evaluation of structural equation models. Journal of the Academy of Marketing Science 1988, 16(1):74-94.
8. Barkema H.G., Bell J.H.J., Pennings J.M. Foreign entry, cultural barriers and learning. Strategic Management Journal 1996, 17(2):151-166.
9. Beckman C.M., Haunschild P.R., Phillips D.J. Friends or strangers? Firm-specific uncertainty, market uncertainty, and network partner selection. Organization Science 2004, 15(3):259-275.
10. Benito G., Solberg C.A., Welch L.S. An exploration of the information behavior of Norwegian exporters. International Journal of Information Management 1993, 13(4):274-293.
11. Blankenburg Holm D., Eriksson K. The character of bridgehead relationships. International Business Review 2000, 9(2):191-210.
12. Blankenburg Holm D., Eriksson K., Johansson J. Business networks and cooperation in international business relationships. Journal of International Business Studies 1996, 27(5):1033-1053.
13. Blankenburg Holm D., Eriksson K., Johanson J. Value creation through mutual commitment to business network relationships. Strategic Management Journal 1999, 20(5):467-486.
14. Blau P.M. Exchange and power in social life 1964, Wiley, New York.
15. Bollen K.A. Structural equations with latent variables. Wiley series in probability and mathematical statistics 1989, Wiley, New York.
16. Bollen K.A., Long S.J. Testing structural equation models 1993, Sage Publications, Newbury Park, CA.
17. Buckley P.J. Foreign direct investments by small and medium sized enterprises: The theoretical background. The internationalization of the firm: A reader 1999, International Thomson Business Press, London. P.J. Buckley, P.N. Ghauri (Eds.).
18. Cavusgil S.T. Organizational characteristics associated with export activity. Journal of Management Studies 1984, 21(1):3-22.
19. Celly K.S., Spekman R.E., Kamauff J.W. Technology uncertainty, buyer preferences and supplier assurances: An examination of Pacific Rim purchasing arrangements. Journal of International Business Studies 1999, 30(2):297-316.
20. Chetty S., Blankenburg Holm D. Internationalisation of small to medium-sized manufacturing firms: A network approach. International Business Review 2000, 9(1):77-93.
21. Chetty S., Eriksson K. Mutual commitment and experiential knowledge in mature international business relationships. International Business Review 2002, 11(3):305-324.
22. Chetty S., Eriksson K., Lindbergh J. The effect of specificity of experience on a firm's perceived importance of institutional knowledge in an ongoing business. Journal of International Business Studies 2006, 37(5):699-712.
23. Coviello N., Munro H. Network relationships and the internationalization process of small software firms. International Business Review 1997, 6(4):361-386.
24. Craig C.S., Douglas S.P. Developing strategies for global markets: An evolutionary perspective. Columbia Journal of World Business 1996, 31(1):70-81.
25. Crick D., Jones M.V. Small high-technology firms and international high-technology markets. Journal of International Marketing 2000, 8(2):63-85.
26. Cunningham M.T., Homse E. Controlling the marketing-purchasing interface: Resource development and organizational implications. Industrial Marketing and Purchasing 1986, 1(2):3-27.
27. Diamantopoulos A., Kakkos N. Managerial assessments of export performance: Conceptual framework and empirical illustration. Journal of International Marketing 2007, 15(3):1-31.
28. Dyer J.H. Specialized supplier networks as a source of competitive advantage: Evidence from the automotive industry. Strategic Management Journal 1996, 17(4):271-291.
29. Dyer J.H. Effective interfirm collaboration: How firms minimize transaction costs and maximize transaction value. Strategic Management Journal 1997, 18(7):553-556.
30. Dyer J.H., Singh H. The relational view: Cooperative strategy and resources of interorganizational competitive advantages. Academy of Management Review 1998, 23(4):660-679.
31. Eriksson K., Johanson J., Majkgård A., Sharma D.D. Experimental knowledge and cost in the internationalization process. Journal of International Business Studies 1997, 28(2):337-360.
32. Erramilli M.K. The experience factor in foreign market-entry behavior of service firms. Journal of International Business Studies 1991, 22(3):479-501.
33. Fligstein N. Markets as politics: A political-cultural approach to market institutions. American Sociological Review 1996, 61(4):656-673.
34. Francis J., Mukherji A., Mukherji J. Examining relational and resource influences on the performance of border region SMEs. International Business Review 2009, 18(4):331-343.
35. Gadde L.-E., Håkansson H. Supplier relations. Understanding business markets 1997, 400-429. Dryden Press, London. D. Ford (Ed.).
36. Gerbing D.W., Anderson J.C. An updated paradigm for scale development incorporating unidimensionality and its assessment. Journal of Marketing Research 1988, 25(2):186-192.
37. Goldberg V.P. Relational exchange: Economics and complex contracts. American Behavioral Scientist 1980, 23(3):337-352.
38. Granovetter M. Economic action and social structure: The problem of embeddedness. American Journal of Sociology 1985, 91(3):481-510.
39. Gripsrud, G., Solberg, C. A., & Ulvnes, A. M. (2006). The effect of information collection behaviour on market performance: The role of partner relationships. In C. A. Solberg (Ed.). Relationship between exporters and their foreign sales and marketing intermediaries. Advances in international marketing: Vol. 16 (pp. 135-155). Oxford: Elsevier.
40. Haahti A., Madupu V., Yavas U., Babakus E. Cooperative strategy, knowledge intensity and export performance of small and medium sized enterprises. Journal of World Business 2005, 40(2):124-138.
41. Hadley R.D., Wilson H.I.M. The network model of internationalisation and experiential knowledge. International Business Review 2003, 12:697-717.
42. Hansen Morten T. The search-transfer problem: The role of weak ties in sharing knowledge across organizational subunits. Administrative Science Quarterly 1999, 44:82-111.
43. Hair J.F., Anderson R.E., Tatham R.L., Black W.C. Multivariate data analysis 1998, Prentice-Hall, Upper Saddle River, New Jersey.
44. Halinen, A. (1996). Service quality in professional business services: A relationship approach. In T. A. Swartz, D. E. Bowen, & S. W. Brown (Eds.). Advances in service marketing and management: Research and practice: Vol. 5 (pp. 315-341). Greenwich, CT: JAI Press.
45. Hallén L., Johanson J., Seyed-Mohamed N. Interfirm adaptation in business relationships. Journal of Marketing 1991, 55(2):29-37.
46. Hannan M.T., Freeman J. Organizational ecology 1989, Harvard University Press, Cambridge, MA.
47. Harrigan J. Specialization and the volume of trade: Do the data obey the laws?. The handbook of international trade 2002, 85-118. Basil Blackwell, Oxford. K. Choi, J. Harrigan (Eds.).
48. Heide J.B., John G. Do norms matter in marketing relationships?. Journal of Marketing 1992, 56(2):32-44.
49. Hohenthal, J., & Lindbergh, J. (2005). International experience and the recognition of business opportunities in foreign markets-A study of SMEs' international experiences and location choice. In P. Ghauri, A. Hadjikjhani, & J. Johanson (Eds.). Managing opportunity development in business networks: Vol. 15 of Reprint Series (pp. 146-163). Houndmills: Department of Business Studies, Palgrave Macmillan.
50. Hult G.T.M., Ketchen D.J., Griffith D.A., Chabowski B.R., Hoffman M.K., Dykes B.J., et al. An assessment of the measurement of performance in international business research. Journal of International Business Studies 2008, 39(6):1064-1080.
51. Hymer S.H. The international operations of national firms: A study of direct foreign investment 1976, MIT Press, Cambridge, MA.
52. Håkansson H., Snehota I. No business is an island: The network concept of business strategy. Scandinavian Journal of Management 1990, 4(3):187-200.
53. Håkansson H., Snehota I. Developing relationships in business networks 1995, Routledge, London.
54. Jarillo J.C. Entrepreneurship and growth: The strategic use of external resources. Journal of Business Venturing 1989, 4(2):133-147.
55. Johanson J., Mattsson L.-G. Internationalization in industrial systems-A network approach. Strategies in global competition 1988, John Wiley, New York. D. Schendel, N. Hood, J.-E. Vahlne (Eds.).
56. Johanson J., Vahlne J.-E. The internationalization process of the firm: A model of knowledge development and increasing foreign market commitments. Journal of International Business Studies 1977, 8(1):23-32.
57. Joskow P.L. Contract duration and relationship-specific investments: Empirical evidence from coal markets. The American Economic Review 1987, 77(1):168-185.
58. Jöreskog K.G., Sörbom D. LISREL 8: Structural equation modeling with the SIMPLIS command language 1993, Lawrence Erlbaum Associates, Publishers, Hillsdale, NJ.
59. Katsikeas C.S., Leonidou L.C., Morgan N.A. Firm-level export performance assessment: Review, evaluation, and development. Journal of the Academy of Marketing Science 2000, 28(4):493-511.
60. Klein B., Crawford R.G., Alchian A.A. Vertical integration, appropriable rents, and the competitive contracting process. Journal of Law and Economics 1978, 21(2):297-326.
61. Kogut B., Singh H. The effect of national culture on the choice of entry mode. Journal of International Business Studies 1988, 19(3):411-432.
62. Kostova T. Transnational transfer of strategic organizational practices: A contextual perspective. Academy of Management Review 1999, 24(2):308-324.
63. Kostova T., Zaheer S. Organizational legitimacy under conditions of complexity: The case of the multinational enterprise. Academy of Management Review 1999, 24(1):64-81.
64. Kotabe M., Martin X., Domato H. Gaining from vertical partnerships. Knowledge transfer, relationship duration, and supplier performance improvement in the U.S. and Japan's automotive industries. Strategic Management Journal 2003, 24(4):293-316.
65. Lant T.K., Milliken F.J., Batra B. The role of managerial learning and interpretation in strategic persistence and reorientation: An empirical exploration. Strategic Management Journal 1992, 13(8):585-608.
66. Liesch P.W., Knight G. Information internalization and hurdle rates in small and medium enterprise internationalization. Journal of International Business Studies 1999, 30(2):383-394.
67. Liesch P.W., Welch L.S., Welch D., McGaughey S.L., Petersen B., Lamb P. Evolving strands of research on firm internationalization. International Studies of Management & Organization 2002, 32(1):16-35.
68. Lindstrand, A. (2003). The usefulness of network experiential knowledge in the internationalization process. Ph.D. dissertation. Uppsala University, Sweden: Department of Business Studies.
69. Lu J.W., Beamish P.W. The internationalization and performance of SMEs. Strategic Management Journal 2001, 22(6/7):565-586.
70. Majkgård A., Sharma D.D. Client-following and market-seeking strategies in the internationalization of service firms. Journal of Business-to-Business Marketing 1998, 4(3):1-41.
71. McCann J.E. Patterns of growth, competitive technology, and financial strategies in young ventures. Journal of Business Venturing 1991, 6(3):189-208.
72. McDougall P.P., Oviatt B.M. New venture internationalization, strategic change, and performance: A follow-up study. Journal of Business Venturing 1996, 11(1):23-40.
73. Miwa Y., Ramseyer J.M. Rethinking relationship-specific investments: Subcontracting in the Japanese automobile industry. Michigan Law Review 2000, 98(8):2636-2667.
74. Nes B.E., Solberg C.A., Silkoset R. The impact of national culture and communication on exporter-distributor relations and on export performance. International Business Review 2007, 16(4):406-424.
75. North D.C. Institutions, institutional change and economic performance 1990, Cambridge University, Cambridge.
76. North D.C. Institutions. Journal of Economic Perspectives 1991, 5(1):97-112.
77. North D.C. Understanding the process of economic change 2005, Princeton University Press, Princeton, NJ.
78. O'Sullivan D., Abela A.V. Marketing performance measurement ability and firm performance. Journal of Marketing 2007, 71(2):79-93.
79. Oviatt B.M., McDougall P.P. Toward a theory of international new ventures. Journal of International Business Studies 1994, 25(1):45-64.
80. Palay T.M. Comparative institutional economics: The governance of rail freight contracting. Journal of Legal Studies 1984, 13(2):265-288.
81. Palmatier R.W., Dant R.P., Grewal D. A comparative longitudinal analysis of theoretical perspectives of interorganizational relationship performance. Journal of Marketing 2007, 71(4):172-194.
82. Parkhe A. Strategic alliance structuring: A game theoretic and transaction cost examination of interfirm cooperation. Academy of Management Journal 1993, 36(4):794-829.
83. Penrose E. The theory of the growth of the firm 1959, John Wiley and Sons, New York.
84. Pfeffer J., Salancik G.R. The external control of organizations: A resource dependence perspective 1978, Harper and Row, New York.
85. Podsakoff P.M., Organ D.W. Self reports in organizational research: Problems and prospects. Journal of Management 1986, 12(4):531-544.
86. Richardson J. Parallel sourcing and supplier performance in the Japanese automobile industry. Strategic Management Journal 1993, 14(5):339-350.
87. Rumelt R.P., Schendel D., Teece D. Fundamental issues in strategy 1994, Harvard Business School Press, Cambridge, MA.
88. Scott R. Institutions and organizations 1995, Sage Publications, Thousand Oaks, CA.
89. Sharma D.D., Blomstermo A. The internationalization process of born globals: A network view. International Business Review 2003, 12(6):739-753.
90. Sharma D.D., Johanson J. Technical consultancy in internationalization. International Marketing Review 1987, 4(4):20-29.
91. Shenkar O. Cultural distance revisited: Towards a more rigorous conceptualization and measurement of cultural differences. Journal of International Business Studies 2001, 32(3):519-535.
92. Skarmeas D., Katsikeas C.S., Schlegelmilch B.B. Drivers of commitment and its impact on performance in cross-cultural buyer-seller relationships: The importer's perspective. Journal of International Business Studies 2002, 33(4):757-783.
93. Subramani M.R., Venkatraman N. Safeguarding Investments in asymmetric interorganizational relationships: Theory and evidence. The Academy of Management Journal 2003, 46(1):46-62.
94. Toyne B. International exchange: A foundation for theory-building in international business. Journal of International Business Studies 1989, 20(1):1-17.
95. Turnbull P.W. Interaction and international marketing: An investment process. International Marketing Review 1987, 4(4):7-19.
96. Tuppura A., Saarenketo S., Puumalainen K., Jantunen A., Kyläheiko K. Linking knowledge, entry timing and internationalization strategy. International Business Review 2008, 17:473-487.
97. Uzzi B. The sources and consequences of embeddedness for the economic performance of organizations: The network effect. American Sociological Review 1996, 61(4):674-698.
98. Uzzi B. Social structure and competition in interfirm networks: the paradox of embeddedness. Administrative Science Quarterly 1997, 42(1):35-67.
99. Venetis K.A., Ghauri P.N. Service quality and customer retention: Building long-term relationships. European Journal of Marketing 2004, 38(11/12):1577-1598.
100. Verwaal E., Donkers B. Firm size and export intensity: Solving an empirical puzzle. Journal of International Business Studies 2002, 33(3):603-613.
101. Wathne K.H., Heide J.B. Opportunism in interfirm relationships: Forms, outcomes, and solutions. Journal of Marketing 2000, 64(October):36-51.
102. Williamson O. The economic institutions of capitalism 1985, Free Press, New York.
103. Wilson D.T., Mummalaneni V. Bonding and commitment in buyer-seller relationships: A preliminary conceptualisation. Industrial Marketing and Purchasing 1986, 1(3):44-58.
104. Winter S.G. Knowledge and competence as strategic assets. The competitive challenge: Strategies for industrial innovation and renewal 1987, Ballinger, Cambridge, MA. D.J. Teece (Ed.).
105. Zaheer S. Overcoming the liability of foreignness. Academy of Management Journal 1995, 38(2):341-363.
106. Zahra S.A., Ireland R.D., Hitt M.A. International expansion by new venture firms: International diversity, mode of market entry, technological learning, and performance. Academy of Management Journal 2000, 43:925-950.
107. Zhou L., Wu W.-P., Luo X. Internationalization and the performance of born-global SMEs: The mediating role of social networks. Journal of International Business Studies 2007, 38(4):673-690.
108. Zou S., Stan S. The determinants of export performance: A review of the empirical literature between 1987 and 1997. International Marketing Review 1998, 15(5):333-356.