what do we know about norwegian firms
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Networks: What do we know about Norwegian firms going abroad?
Morten H. Abrahamsen,Associate Professor
Networks: What do we know about Norwegian firms going abroad?
Morten H. Abrahamsen,Associate Professor
some
Starting point
• International marketing research traditionally focuses on entry strategies:– Agent, distributor, intermediary, sales office,
domestic or local production?
• Export performance is related to relationship quality with these actors
• Governance mechanisms
Relationship quality dependent on
• Uncertainty and complexity• Trust and commitment• Cultural disctance/closeness• Adaption and relationship investment• Cooperation and conflict
’No business is an island’
But what if it looks like this?
Networks and export performance
• ”Firms success in entering international markets is more dependent on its position in a network than cultural characteristics”
(Johanson and Mattson, 1988)
• ”Using existing relationships as bridges to other networks”
(Kenny and Fahy, 2011)
• ”Roles performed in a network rather than functions in a distribution or value chain may explain export performance”
(Abrahamsen et al., 2012)
Levels of export capabilities
RelationaFirm-
specific capabilities
Relational capabilities
Networkingcapabilities
Based on Grant (1995)
Firm-specific capabilities
• Attitudes• Expectations• Knowledge• Motivation
RelationaFirm-
specific capabilities
Relational capabilities
Networkingcapabilities
Characteristics of successful exporters
• Attitudes– Risk asessment– Market orientation– Cultural sensitivity
• Competence– Pricing policy– Sales skills– Ability to cooperate with
partners
• Organisational skills– Organisational backing– Top management and
board support
(Solberg, 2009)
Relational capabilies
• Adaptation required• Interdependence between companies• Exporting is a learning process• Other: – The resource-based view– Knowledge theory– Oranisational learning theory
RelationaFirm-
specific capabilities
Relational capabilities
Networkingcapabilities
Key questions
• How to evaluate future value—customer lifetime value of a relationship?
• How to create, manage and conclude relationships efficiently—from organizational and analytical perspectives?
• How to manage relational episodes efficiently? (Halinen and Möller, 2008)
Complexity and distance
• Complex products require high relationship investment in the relationship, ie. need for close cooperation
• Low complexity requires low investment, ie. need for ”door-openers”
• High cultural distance requires strong presence and close supervision
(Solberg, 2008)
But what if it looks like this?
Network = Interconnected relationships
Network capabilities
• “The resources and activities of a company to generate, develop, and manage networks in order to take advantage of single relationships and the network as a whole”
(Gemünden and Ritter, 1997)
RelationaFirm-
specific capabilities
Relational capabilities
Networkingcapabilities
What is a Business Network?
• A business network consists of two ”building blocks”:– companies and business relationships
• The companies and business relationships are interconnected, and together form a complex, web-like structure.
Questions for exporters
• What is my relevant network?• What is the network that I want
to be a part of?• Who can give me information
about new possibilities?
?
• What role should I play? • What resources can I offer?• What actvities can I perform? • How can the network be strenghtened
by my participation?
• What will happen to the network if strengthen my ties?
• What ties will be weakened?
• If you want to take up new functions, this may imply replacing someone else. What will they do? Counteract you?
Exporters facing new challenges
A seafood export network
Norwegian seafood exporters facing new challenges in a changing Japanese market..
What did they do?
• Redefining roles of existing importers• Finding new importers sharing their
perspective• Challenge existing distribution stucturing
using market power• Maintaining links with traditional network• Creating new ties to retailers and
restaurants
Network strategies
• Confront or Conform?• Create or Consolidate?• Coerce or Concede?
(Ford, 2011)
Conclusion
• The question is not to have relationships or not, but how to handle them!
• The question is not to network or not, but how to network!
Basic business assumptions:
-Jungle?
Basic business assumptions:
-Jungle?
-or rainforest?
Want to know more?
www.networksinbusiness.wordpress.com
Takk for oppmerksomheten!
Obrigado por sua atenção!