The perceived usefulness of knowledge supplied by foreign client networks
2009 (English)In: International Business Review, ISSN 0969-5931, Vol. 18, no 1, 26-37 p.Article in journal (Refereed) Published
The network surrounding a firm’s foreign clients has large influence on its ability to act in the market. How firms can utilize the knowledge supplied by client networks is therefore of great importance to their business with clients. Many studies show the usefulness of foreign clients and suppliers, whereas less attention has been given to the usefulness of knowledge supplied by clients’ network, such as clients’ clients, clients’ supplementary suppliers and competitors to the firm. This study contributes to international business research on networks by investigating the knowledge supplied by client networks for a firm doing business with a specific foreign client on a sample of 494 firms. A LISREL analysis demonstrates that knowledge supplied by client networks is more useful the more experienced the firm. Client networks are also more useful the more knowledge the firm has of its client, the more the firm needs knowledge of its clients and suppliers, the higher the cost of the client relationship, and the more standardized the product. A major conclusion is that the client network knowledge is more useful the further a firm’s collaboration with the client, presumably as a result of the new, and more embedded business that the firm develops with the client. Implications are that client networks are resources that can be important competitive advantages for the internationalizing firm.
Place, publisher, year, edition, pages
Elsevier, 2009. Vol. 18, no 1, 26-37 p.
Internationalization process Client relationship Network Variation Learning Ongoing business
IdentifiersURN: urn:nbn:se:kth:diva-73969DOI: 10.1016/j.ibusrev.2008.11.002ISI: 000264927400003ScopusID: 2-s2.0-61849184376OAI: oai:DiVA.org:kth-73969DiVA: diva2:489110
NOTICE: this is the author’s version of a work that was accepted for publication in International Business Review. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in International Business Review, VOL 18, ISSUE 1, DATE 29 January 2009 DOI 10.1016/j.ibusrev.2008.11.002