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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.

For many exporting firms, success in foreign markets hinges to a large extent on the performance of their foreign intermediaries (Albaum, Strandskov, & Duerr, 2002; Ellis, 2000; Root, 1987). In spite of the key role played by intermediaries in foreign markets – i.e. sales agents and independent distributors (Solberg & Nes, 2002) – exporters often regard them as temporary arrangements and second-best alternatives to conducting foreign marketing, sales, and service activities in-house. The typical assumption is that foreign intermediaries are low-control entry modes (Hill, 2003; Root, 1987) that do not have the potential of exploiting the full sales potential of export markets. In other words, foreign intermediary arrangements could have inherent limitations that foster mediocre rather than excellent market performance. Several studies report that exporters generally distrust foreign intermediaries and suspect them of shirking at any given occasion (Beeth, 1990; Nicholas, 1986; Petersen, Benito, & Pedersen, 2000). Poor performance is sometimes expected. On the other hand, foreign intermediaries often find that exporters put in place incentive structures that do not induce them to achieve excellent performance. Hence, it is asserted that foreign intermediaries may deliberately seek mediocrity rather than very poor or outstanding performance.

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.

The chapter contributes to on-going debates about the inclusion of smallholders in export value chains for high-value agricultural products. Specifically, it investigates the factors driving the procurement practices of exporter of fresh fruits and vegetables in sub-Saharan Africa, and specifically sourcing from smallholders. A survey is undertaken of exporters of fresh fruit and vegetables in sub-Saharan Africa. The resulting data are used to estimate econometrically the propensity of exporters to source from smallholders, and the intensity of sourcing among those exporters who do procure from smallholders. Explanatory variables include firm and market characteristics, supply chain costs, type of product, availability of alternative sources of supply, and judgments regarding the performance of smallholders and other sources of supply.The propensity to procure from smallholders is found to be negatively associated with being a small exporter and the performance of medium- and large-scale producers. Exporters are more likely to source from smallholders if they have their own production capacity and smallholders are judged to perform well. The requirement of customers to comply with private food safety standards is found to have no significant effect on the propensity to procure from smallholders. Conversely, compliance with private standards has a strong influence on the intensity of sourcing from smallholders. Exporters judging smallholders to perform well are more likely to source intensively from smallholders, but to source less if they judge their own production to perform well. High fixed costs tend to be associated with lower intensity of sourcing from smallholders. The results suggest that compliance with private food safety standards does not drive the exclusion of smallholders from export value chains; indeed, conversely, the requirement to comply with such standards is associated with greater intensity of sourcing from smallholders. Smallholders evidently play a key role in the defrayment of risk by exporters in that many exporters combine their own production with smallholder procurement. Costs of procurement from smallholders, however, remain an issue. Evidently, the fixed costs of smallholder supply chains increase appreciably with the intensity of sourcing. The research reported here provides a new perspective on the inclusion of smallholders in export value chains for horticultural products. The incorporation of smallholders into these value chains is seen as the outcome of the procurement decisions of exporters. Contrary to much of the discourse in this area, the results suggest that smallholders can and do compete in export value chains for horticultural products even in the context of exacting food safety standards.

This simple case study tells the story of three young men who started an online business-to-business trading portal for fun, and to help fund them through university. They seized the opportunity of a major assignment to ask a new lecturer, the narrator, to guide them into profitability. Reluctantly, the young men were coerced into a literature survey, which proved surprisingly helpful to them. A simple research project followed, using mixed methods (survey, expert opinion, key account interviews). Based on the survey results and some simple frameworks from the literature, the young men not only completed their exercise, but also went on to turn their hobby into a sustainable business. The business still exists today, based on the simple study conducted some 12 years ago.

This paper investigates the role of the foreign local middleman in the information flows between the market and the exporter. Whereas a number of studies have examined the information behaviour of exporters (Benito, Carl, & Lawrence, 1993; McAuley, 1993; Hart, Webb, & Jones, 1994; Diamantopoulos og Souchon, 1996, 1997, 1998), limited attention has been given to the role of the local foreign partner¹ in this context. Once established in a market with a foreign intermediary as a partner, there are at least two reasons why information is needed by the exporter. First, the scope as well as the extent of information needed will depend upon the functional “division of labour” between the exporter and the middleman. The less responsibility left to the partner the more information is needed by the exporter to make appropriate decisions. Second, the exporter may want information to control the performance of the partner. Fear of opportunistic behaviour is the driving force in the latter case.

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.

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.

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).

Research related to firm export performance dates back to the early 1960s, ever since many studies have been conducted with mixed results. The three main goals of the present study were to analyze (1) the impact of the selected firm, management, and the export strategy-related variables on the export performance; (2) the possible variation in the results depending on the measure of export performance; and (3) the similarities and differences in the results depending on the type of SME – traditional exporters vs. born international companies. Based on a literature review, 14 hypotheses were developed to be tested. Consequently, the empirical part of the study is based on a survey conducted among Finnish SMEs in early 2002. The export performance was analyzed using six different types of performance measures. None of the 14 hypotheses were fully supported by all employed measures of performance. However, the export performance was positively impacted by firm size, product/service quality, international orientation, and market diversification along five measures. Additionally, the study indicated some similarities, but also some differences depending on the measure of export performance, type of the exporting SME, and the operationalizations used for the born international companies. Based on the results, management implications and proposals for future research are presented.