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Network knowledge and business-relationship value in the foreign market
Institution:1. Department of Business Studies, Uppsala University, Box 513, 751 20 Uppsala, Sweden;2. Department of Business, Economics and Law, Mid Sweden University, 851 70 Sundsvall, Sweden;1. University of Seville (Spain), Avda San Francisco Javier s/n, 41018 Seville, Spain;2. University of Seville (Spain), Avda Ramón y Cajal, 1, 41018 Seville, Spain;1. Institut Teknologi Sepuluh Nopember (ITS), Indonesia;2. University of Otago, New Zealand;3. Aalto University, Finland;1. University of Glasgow, Adam Smith Business School, University Avenue, Glasgow G12 8QQ, UK;2. Department of Business Administration, School of Economics, Aristotle University of Thessaloniki, Thessaloniki, Greece;3. Förbom Properties, Tikanmaankatu 76, 21210 Raisio, Finland;1. University of Pavia, via san Felice 7, 27100 Pavia, Italy;2. University of Sussex, UK
Abstract:Based on the key assumptions that firms are opportunity seeking and that they gain critical knowledge operating in a network of relationships, this paper focuses on early expansion in foreign market networks. In particular, the paper examines the relation between experience and business-relationship value in a foreign market. While experience and experiential knowledge are central concepts in international business, little has been written about their effects on the value of business relationships. The paper formulates a set of interrelated hypotheses on the effects of international experience, experiential network knowledge and importance of customer and competitor knowledge on the value of business relationships in a foreign market. They are combined in a structural model, which is tested on a sample through LISREL. The main conclusion drawn from the study is that experiential network knowledge and knowledge about the importance of customers and competitors in the network influence the value of business relationships in a foreign market in different ways.
Keywords:Business relationship value  Experiential network knowledge  International experience  Knowledge about competitors  Knowledge about customers  Network
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