Relationships and Networks in International Markets

Citation

Katsikeas, C.S. and Robson, M.J. (1999), "Relationships and Networks in International Markets", International Marketing Review, Vol. 16 No. 6, pp. 533-535. https://doi.org/10.1108/imr.1999.16.6.533.1

International marketing decisions have become increasingly important to the survival and long‐term viability of modern business organisations. This is attributable to the increasing tendency towards a global economic system and intensifying competition worldwide, along with the accelerating pace of technological innovation. Broadly, international market operations involve substantial benefits for both national economies and individual firms. Potential macroeconomic benefits include foreign exchange accumulation, increased employment levels, and productivity improvements, which in turn can facilitate economic growth and societal prosperity. International business operations also help firms increase utilisation of capacity, develop managerial skills, encourage product and process innovation, strengthen competitive position, and ultimately enhance financial performance (Leonidou and Katsikeas, 1996).

Several efforts have been made to assess the body of knowledge in the field (e.g. Douglas and Craig, 1992; Aulakh and Kotabe, 1993; Zou and Stan, 1998). One common conclusion of these studies is that this body of research is characterised by several theoretical and methodological limitations, often leading to fragmentation and inconsistency among empirical findings. This phenomenon is largely associated with the neoclassical microeconomic paradigm which dominates empirical research, criticised as monolithic and incomplete as it takes no consideration of the behavioural dimensions underlying business associations and trading patterns in international markets (Leonidou and Kaleka, 1998).

One way to address this issue lies in the adoption of a relational perspective in examining international marketing matters (Styles and Ambler, 1994). According to this approach both suppliers and customers are equally active in international business; the challenge facing business practitioners and academic researchers is to understand the factors shaping organisational interactions between the parties involved. The book in question offers a valuable set of articles reporting conceptual and empirical works on the establishment, development, and maintenance of business relationships and networks in international markets. After providing a thorough introduction to past, present, and future research on both business relationships and networks, it is divided logically into two sections containing studies reporting contemporary developments in each stream. In providing major new developments for each sector in such a fashion, the book is well positioned to coordinate future research in two allied areas linked by one core concept – the relationship.

The intended audience of the book is broad – researchers in the area of industrial and service marketing, as well as practitioners interested in these disciplines. In our view, this has been achieved effectively – more still if you account for the fact that some contributors (see, for example, Heydebreck and Maier’s chapter 26) offer significant implications for public policy makers. The studies reported in this compilation vary greatly in terms of the subject matter and issues they cover, spanning manifold conceptual and theoretical insights and investigating many interesting dimensions. Furthermore, while certain theoretical papers are positioned at a higher level in that they broadly consider a number of issues, there are as many other papers that offer very detailed and highly specific empirical insight into relational aspects in particular industrial settings. In this fashion, the book caters for both readers unfamiliar with the IMP Group’s work on relationship marketing and business networks (the use of figures throughout the book is extremely helpful), and those relatively up‐to‐speed and more interested in the latest advancements. It is clear to the reader that the collection of articles in this volume is a conduit for what is an expansive and rigorous body of research.

The first part of the book, comprising three chapters (articles), provides descriptive insights into the research background and evolution of the IMP Group’s work, and of the business relationship and network areas. As well as being comprehensively informative, taking the reader from the beginnings of industrial marketing and groundbreaking early work on the key idea of ongoing inter‐firm interactions to the latest research into managing dynamic dyads and networks, this introductory section is user friendly. Part two of the book contains 13 chapters, many of which are novel and practical, reporting new insights into business relationships. Take for example Brennan and Turnbull’s study (chapter 5) of the process of adaptation (this issue has obviously been ignored by researchers in the field) or Bardzil and Johnson’s (chapter 8) search for middle‐level theories and frameworks via a look at operational weaknesses inherent in the traditional exchange paradigms.

Notwithstanding this, part two of the book is divided somewhat shakily into three sub‐sections: establishing and maintaining business relationships; managing business relationships; and analysing business relationships.

The distinction between these appears not very clear since certain articles in one sub‐section would fit in well in another. The article about relationship promoters (chapter 12), for instance, should possibly appear earlier in the volume as these important facilitators commonly initiate tie‐ups and play a pivotal role in maintaining them. Whilst the first half of part two is largely conceptual, it ends with three quantitative studies offering salient insights into the management of business relationships and collaborative ventures in general. Indeed, this book and the body of work represented in it notably contain important lessons for those interested in the development of strategic alliances and joint ventures – the middle ground between buyer‐seller partnerships and network organisations.

Part three contains ten chapters focusing on research into business networks, which have been divided into three more sub‐sections: new conceptual contributions to network research; marketing, purchasing and networks; and innovation success and networks. The articles contained in the first of these offer broadly important theoretical insights into the network phenomenon as well as into dyadic collaborative strategies. The next sub‐section is applied and more empirical, exhibiting translations of network theory in approaching partnership. Similarly, studies included in the last section apply and interpret network theory, this time in the specific contexts of innovation and technical development.

One criticism of the book is that (despite its title) it is not fully in the domain of international marketing and management. Several articles included in part one or two do not really offer developments in international marketing and are not positioned to report an international perspective. Irrespective, the volume will certainly prove a valuable reference to international marketers both within and outside the IMP Group’s heartland, Europe. In a broader sense the book is extremely valuable in view of the fact that it contains many articles that obviously convey the latest occurrences and problems in present day business relationships. Two examples of this are the investigation of channel partners’ concerns with forming close business ties (chapter 7) and the key roles of relationship promoters in surmounting different barriers of inter‐organisational cooperation (chapter 12). Furthermore, it goes to great lengths to spotlight many large and more obtuse failings of extant research in the business relationship and network domain. This, coupled with the fact that a number of the theoretical studies provide testable research propositions, should ensure that the book will immediately prove useful in influencing and stimulating future research.