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Given the confluence of opportunism, bounded rationality, and asset specificity in a partnership, the participants may attempt to expropriate certain rents. This type of rent is called the quasi-rent, and it is the reason for participating in the relationship in the first place (Alchian & Woodward, 1988). A quasi-rent is the excess above the returns necessary to sustain the current use of resources. It can be the means to recover sunk costs, such as investments in assets in general, and relational assets in our context. A relational quasi-rent is that portion of the quasi-rent generated by a resource that depends on the partner's resources (Hill, 1990). It stems from investment in specialized assets to support a partnership. Also this rent is the amount, which a partner can expropriate without destroying the relationship.

I learned my first important lesson on research from the research design seminars offered by Drs Tamer Cavusgil and Roger Calantone. During my first semester in the Ph.D. program, I took a Ph.D. seminar class, international business research with Dr. Tamer Cavusgil. In that class, each student was asked to select a topic to research, present findings to the rest of the class, and write a term paper that could be turned into a potential publication. In the midst of my struggle to find this big bang topic that could lead to a potential publication, Dr. Tamer Cavusgil showed us a few surveys designed by previous Ph.D. students. He mentioned that we could use these surveys as guidelines to develop our own thoughts. These surveys turned out to be the concrete piece of information that I needed to be on track with my research. Prior to this, I had gained some interests in understanding how trust and relational norms govern inter-organizational relationships. One of the surveys Dr. Cavusgil passed to us happened to be about this research area. Under the guidance of Drs Cavusgil and Joseph Bonner, I developed my first research ideas on understanding the third way of governance, relational norms in international channels of distribution.

Exporting manufacturers that pursue international expansion via foreign distributors face a trade off. Their decision to utilize international distributors as a market entry mode reduces some risks; however, the manufacturers do not enjoy control of the foreign channel. Given heterogeneity in global environments and often a significant geopolitical separation between manufacturers and international distributors, the ability to control the behavior of channel partners is inherently reduced. Consequently, natural conditions for opportunistic behavior are created (Karunaratna & Johnson, 1997; Klein & Roth, 1990).

This study examines the roles of market and learning orientations in relationship quality between exporters in transition economies and their foreign importers and subsequently, export performance. A random sample of 283 export firms in Vietnam provides evidence to support the hypothesized main effects. The results further indicate that learning orientation plays a role in building high-quality relationships for both new and mature relationships. However, the impact of market orientation on relationship quality is found only in the new relationship. In addition, firm-ownership structure does not moderate the relationships between learning orientation, market orientation, relationship quality, and export performance.

Purpose – Resource-based literature argues that firms’ export performances are influenced by a proper combination of their own resources and capabilities, allowing for sustainable competitive advantages. Because export activities are usually based on relationships between firms and foreign intermediaries, the adequate management of inter-organisational activities should also be analysed as a key determinant of export performance.

Originality – Our research adds to the existing literature by examining the role that management control systems (MCS) play in exploiting firms’ exporting capabilities and resources to optimise export performance.

Methodology – Utilising empirical data from Spanish exporters, an initial analysis of export efficiency was performed based on DEA and segmentation techniques. From efficiency scores, we tested causal relationships between MCS design and use and the optimisation of resources and capabilities when performing export activities.

Findings and practical implications – The main conclusions are that any type of control system was found to have a positive influence in export performance, but only social control establishes a difference in terms of efficiency. The results show that strong social controls increase firms’ efficiencies when managing export channels, allowing firms to achieve outputs superior to competitors with similar resources and capabilities. In addition, an efficiency ‘lifecycle’ was identified for relationships between exporters and intermediaries. A pro-cyclical effect was found among MCS design, use, and export efficiency; intense MCS were established in the first stages of a relationship but were relaxed after a certain level of efficiency was achieved, leading to a reduction of efficiency in the long term that compromised the continuity of relationships.

Power is the potential ability of one individual or organization to directly influence another (Dahl, 1957; Emerson, 1962, French & Raven, 1959). The potential to influence another emanates from a number of social power bases. Six bases of power have been enumerated in the literature: reward, coercive, legitimate, referent, expert, and informational (French & Raven, 1959; Raven, 1965, 1992). Reward power emanates from the capability of one party to reward another. Coercive power originates from one party's expectation that he/she will be punished by his/her partner if he/she fails to conform to the influence attempt. Legitimate power is derived from the internalization of values that dictate his/her partner has a legitimate right to influence him/her and he/she has an obligation to accept this influence. Referent power is defined by the identification of one partner with the other. Expert power is the extent that the knowledge that one partner attributes to the other provides for influence. Informational power is defined as the logical argument that a partner presents to another in order to implement change. The aggregation of the six power bases determines an individual's or organization's overall power.

In recent years, many firms from developing countries (LDCs) have engaged in foreign direct investment (FDI). Interestingly some of these firms locate their investments in developed countries (DCs) (i.e., upstream FDI), instead of in countries economically similar to or less than their home countries (i.e., downstream FDI). However, only a few researchers have examined the issues related to upstream FDI. Furthermore, when examining FDI, most studies have focused on manufacturing subsidiaries but paid less attention to sales subsidiaries. Due to the differences in nature, management of manufacturing and sales subsidiaries should be different. Using a case study approach and focusing on the behaviors of Taiwanese firms, we address two research questions: (1) what are the channel strategies adopted by the sales subsidiaries of Taiwanese high-tech firms (i.e., multinational corporations (MNCs) from LDCs (LDCMNCs)) in DCs? and (2) how do these subsidiaries manage their channels in DCs? Our findings are: (1) LDCMNCs tend to use multiple sales channels, to work with large national distributors, and to adopt high touch channels to market products in DCs; (2) to reduce channel conflict, less powerful LDCMNCs tend to adopt multiple independent channel system, instead of dual channel system; and (3) due to limited resources, LDCMNCs make more effort on designing channel conflict prevention mechanisms than designing channel conflict resolution mechanisms, emphasize more on building relationships with distributors and tend to use financial incentives/high-power incentives than use other types of incentives to motivate distributors. The findings of this study are helpful for LDC firms to operate their sales subsidiaries more effectively in DCs.

In an international setting, the potential conflict between the trading partners is thought to be more acute than in the domestic market, as cultural distance and ensuing misunderstandings make trading relations more complicated and demanding: the international marketer is confronted with the challenges of not only understanding the culture but also interpreting the local market information. This situation is often aggravated by limited resources put into the international marketing endeavour by the marketer.

Building trust and living interpersonal trust are crucial corporate executive virtues that are needed today. Once you have developed and solidified a high level of genuine interpersonal trust with all your stakeholders, especially customers, suppliers, and employees, then you are on the right path of managing and transforming your company. A high level of interpersonal trust between all stakeholders and corporates in a business situation will break down communication barriers, foster serious conversation and sharing of ideas, and will eliminate corporate transactional anxieties of fear, mistrust, guilt, rigidity, blame, and resentment. When stakeholders trust you and you trust them, then you speak freely, they speak freely, and your mutual sustained transparency is a gateway to survival, revival, and sustained corporate recovery and transformation, and steady growth and prosperity. Conversely, when there is low trust, high mistrust, and high distrust among stakeholders in a business situation, communications and conversations are stressed and fragmented, teamwork and team spirit are very low, and the company is heading toward its ruin and extermination. Such is the crucial role of interpersonal trust in business. This chapter explores the crucial phenomenon of corporate interpersonal trust. We review various cases, models, concepts, definitions, and theories of trust from the management literature in general, and from the marketing field in particular, to derive psychological, behavioral, ethical, and moral principles of corporate trust, trusting relations, and trusting strategies.