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Although the prior literature has identified the relevance of dealer participation for multinational enterprises (MNEs), it is unclear whether such participation could also be an important means for local dealers to learn from MNEs. By adopting local firms’ viewpoint, our study draws on organizational learning theory to examine how local dealers benefit from their participation with foreign suppliers in Africa.

The empirical setting is a combinative dataset of secondary data and primary survey of 164 small- and medium-sized local dealers with nine subsidiaries of a Chinese motorcycle company in six countries of Sub-Saharan Africa.

This research shows that dealer participation is positively associated with dealer performance, and this positive effect is stronger when local dealers operate in regions with low government corruption and high government support. However, the positive relationship is weaker when local dealers use the local tongue extensively but becomes stronger when their foreign suppliers have a high dealer coverage.

By taking a local-participant perspective, our study extends the participation literature to show how firms from a resource-constrained region may benefit from their proactive participation with foreign counterparts. Additionally, we identify the boundary conditions of institutional factors and strategic choices of local dealers and foreign suppliers, providing a nuanced understanding of firm behaviors in complex and uncertain markets.

In the pursuit of co-exploration, the strength and brokerage dimensions of dyadic ties create a novelty–action trade-off: tie strength facilitates coordination but constraints novelty, while tie brokerage expands knowledge diversity but aggravates coordination difficulty. This study contributes towards a better understanding of this tension by comparing two dimensions of relational ties and examining their contingent values given different environmental factors and exchange characteristics.

The authors used survey data from 194 matched buyer–supplier dyads in China's high-tech industries and employed hierarchical moderated regression analysis to test the proposed hypotheses.

The authors find that compared with tie strength, tie brokerage has a stronger positive effect on co-exploration. Moreover, guanxi importance amplifies the effect of tie strength while decreasing the value of tie brokerage. As market uncertainty increases, the role of tie brokerage becomes more salient. Additionally, tie strength becomes less effective when buyer centralization is high, whereas tie brokerage exerts a stronger impact on co-exploration when an exchange is highly formalized.

This study contributes to the supply chain literature by adopting a relational perspective to integrate relational ties into the study of buyer–supplier co-exploration and by elaborating on the different implications of tie strength and tie brokerage in resolving the novelty–action trade-off. Furthermore, it provides a more nuanced understanding of when distinct dimensions of relational ties are effective, by clarifying boundary conditions in terms of environmental factors and exchange characteristics.