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The study here examines how business actors adapt to changes in networks by analyzing their perceptions or their network pictures. The study is exploratory or iterative in the sense that revisions occur to the research question, method, theory, and context as an integral part of the research process.

Changes within networks receive less research attention, although considerable research exists on explaining business network structures in different research traditions. This study analyzes changes in networks in terms of the industrial network approach. This approach sees networks as connected relationships between actors, where interdependent companies interact based on their sensemaking of their relevant network environment. The study develops a concept of network change as well as an operationalization for comparing perceptions of change, where the study introduces a template model of dottograms to systematically analyze differences in perceptions. The study then applies the model to analyze findings from a case study of Norwegian/Japanese seafood distribution, and the chapter provides a rich description of a complex system facing considerable pressure to change. In-depth personal interviews and cognitive mapping techniques are the main research tools applied, in addition to tracer studies and personal observation.

The dottogram method represents a valuable contribution to case study research as it enables systematic within-case and across-case analyses. A further theoretical contribution of the study is the suggestion that network change is about actors seeking to change their network position to gain access to resources. Thereby, the study also implies a close relationship between the concepts network position and the network change that has not been discussed within the network approach in great detail.

Another major contribution of the study is the analysis of the role that network pictures play in actors' efforts to change their network position. The study develops seven propositions in an attempt to describe the role of network pictures in network change. So far, the relevant literature discusses network pictures mainly as a theoretical concept. Finally, the chapter concludes with important implications for management practice.

While organization theories acknowledge the influence of specific assets on dependence and increasingly represent the latter as a structure of mutual dependence (dependence of A on B and dependence of B on A), there is, to the best of our knowledge, no empirical test concerning the impact of specific assets on a structure of dependence. Our chapter aims to fill this gap. It is all the more original in that it considers a case study where dependence changes sides according to the characteristics of the transaction. We examine the dependence between Chilean exporters and European importers when trading fresh produce. Such dependence originates with the need for just-in-time coordination and compliance with a compelling demand in a context of high price uncertainty.

Using a unique dataset from international trade in fresh produce between Chile and the rest of the world, we justify the use of a concentration sales ratio as a proxy for dependence and test the influence of a variety of specific assets on the side of dependence by using both categorical and dimensional approaches. Original findings show that certain transaction attributes have a strong influence on the side of dependence. In particular, the higher the frequency and the level of specific assets such as volume, niche varieties, and joint sales with other products, in the transaction, the greater the likelihood of a higher ratio of dependence for the importer rather than the exporter. Conversely, in the event of low levels of specific assets and less frequent operations, dependence tends to be greater on the side of the exporter.

Although examples of governance abound in the study of export theory, dyadic relationships (importers and exporters) in import theory have thus far received scant attention in the international business literature. Our study aims to explore how high-quality relationships, manifested by trust, respectful engagement and vitality, augment relationship commitment between importer and exporter, while controlling for years of importing, exporter visits, exporter reputation, substitutes, and industry conditions. Data collected from 97 importing companies show that both trust and respectful engagement had a positive effect on relationship commitment. However, vitality mediated the relationship between respectful engagement and relationship commitment. The findings also indicate that the presence of product substitutes had a significant impact on relationship commitment.

Emerging markets are said to have sustained relatively well in the recent global crisis. There are several factors that help explain this popular view, such as, for example, perceived separation from key international financial centres. Still a lot is to be digested in the crisis aftermath with immediate implications for financial markets and real economy. This chapter offers a unique insight into dynamics within transition economies via an extended blended fiscal–monetary policy rules model with possibility of foreign reserves targeting and foreign currency-denominated debt dynamics. Calibration is based on actual data and is done under various targets and financial risk conditions. Prudent monetary policy and fiscal policy initiatives within current context drive the choice of targets. That may help dampen negative impacts of the crisis and thwart potential currency run. This chapter advances three possible post-crisis scenarios, each with unique solution for reserves, exchange rate, sustainable debt and output levels. Categorizing between net exporters and net importers based on countries' external positions, group-specific results are derived. While both groups are susceptible to exchange-rate risk affected by a multitude of shocks due to their fragile financial system, net importers risk high inflation, but net exporters over-borrowing. This chapter contributes to the literature on global financial crisis, macroeconomic policy, and role of nominal targets and foreign reserves in emerging markets.

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.

In later years a number of articles have been published on the issue of exporter–importer relations either from the exporter viewpoint (Bello & Gilliland, 1997; Mortanges & Vossen, 2000; Solberg & Nes, 2002; Bello, Christitan & Li, 2003; Zhang, Cavusgil & Roath, 2003) or from the importer perspective (Lye, 1998; Skarmeas & Katsikeas, 2001; Skarmeas, katsikeas, & Schlegelmilch. 2002). The main focus has been on how to develop relations with and control of the foreign partner. Taking a principal-agent view of the channel management issues, Bello and Gilliland (1997) suggest a model where they test how unilateral (through process control or outcome control) and bilateral governance structures (flexibility) are being influenced by a number of antecedents, and how they in their turn impact on exporter performance. Process control may be described as the principal's influence on the way in which distributors/subsidiaries carry out the marketing activities (advertising, sales calls, etc), whereas with outcome control the firm is content with controlling the result of these activities (profit, sales volume, market share, etc). They found that outcome control and flexibility of the trading partners correlate positively with performance, whereas no significant relationships were established between process control and performance. Other models have later been introduced, where the effects of relational controls or relational norms have been explored (Bello et al. 2003; Zhang et al. 2003).

This study constructs a comprehensive, internationally comparative set of foreign trade data for the period 1857–1875. The dataset is constructed using information at the commodity group-level and contains import and export values for the UK, France, the Zollverein, the Netherlands, Belgium, Austria-Hungary, and the United States, itemised by trade partner. The study tackles three basic problems related to the heterogeneity in national statistics of the period: different definitions of aggregates, inadequate ‘official’ pricing, and the ‘proximity bias’, i.e. the misleading practice of crediting imports to bordering countries from where they physically entered, but where they did not originate. After passing successfully a consistency test, the resulting dataset contains harmonised and country of origin-corrected bilateral trade values for 7 central importers, 10 points in time, and 21 commodity groups, along with ad valorem tariff rates for all commodity groups and countries. They offer new detailed insights into the composition and evolution of trade and tariffs in the third quarter of the 19th century. Furthermore, a basic implementation of the gravity equation shows that as a consequence of the proximity bias estimates using uncorrected data are to be taken with care, especially when assessing border effects and the impact of policy variables.

This study provides evidence on the importance of operational hedges in foreign-exchange risk management, an issue that has been largely ignored in the literature. One possible reason for the absence of empirical evidence in the literature may be related to the difficulty in devising the appropriate measures of a firm's ability to construct operating hedges. We utilize measures of the structure of an MNC's foreign subsidiary network as proxies of the firm's ability to devise operational hedges and examine their relationship to exposure coefficients computed prior to and during the 1997–1998 Asian currency crisis. Our results show that the mean exposure during the Asian crisis period was significantly higher than the pre-crisis period. In addition, the mean of the absolute change in the exposure of MNCs that only operate in the Asian crisis region was significantly higher than that of MNCs without operations in the crisis region. We find a strong relationship between our proxies for ability to construct operating hedges and exchange-rate exposure measures both prior to the crisis and during the crisis. An even stronger association between exposure and measures of the MNC network structure is found for the sub-sample of MNCs that have some operations in the Asian crisis region. Similar results are obtained when the relationship is examined separately for “net importers” (MNCs with positive exposures) and “net exporters” (MNCs with negative exposures). Overall, our results are consistent with the notion that operational hedges significantly reduce a firm's exposure to foreign-exchange risk.

The emphasis on inter-organizational systems gave rise to concerns about inter-organizational relationships as trading partners became aware of the socio-political factors and trust that affect their relationships. This paper examines the importance of inter-organizational-trust in business-to-business E-commerce organizations. It examines how inter-organizational relationships impact trading partner trust, perceived benefits, perceived risks, and technology trust mechanisms in E-commerce that can in turn influence outcomes of business-to-business E-commerce. This paper develops a conceptual model and tests the model using a case study research methodology. The aim is to solicit qualitative in depth understanding of inter-organizational-trust in business-to-business E-commerce. Eight organizations from a cross section of industries that formed four bi-directional dyads participated in the third stage of this study. The first two stages include exploratory case studies in three organizations in the automotive industry that applied EDI via Value-Added-Networks in 1997, and a nationwide survey of organizations that examined the extent of E-commerce adoption in Australia and New Zealand in 1998. The findings identify the need for trustworthy business relationships in an E-commerce environment.