Amjad Hadjikhani

Project Marketing and the Management of Discontinuity

There is too little knowledge about project marketing and discontinuity in the relationship between international project buyers and sellers. Discontinuity in the selling of projects to the same buyer is a strategical problem because of the increased mobility of the buyer (Cova and Salle, 1992). The prevailing concepts in project marketing mainly concern the field of negotiation which is seen as temporary (e.g. Salacuse and Rubin, 1990), or deal with the presumption of continuity in the relationship between project buyer and seller (Hakansson, 1982). This paper aims to study project marketing from a different angle. It focuses on the period after project completion in which project buyer and seller are not concerned with resource exchange or negotiation and the buyers mobility is high. The question is how to manage the relationship left after a projects completion. The management of this relationship is shown to be interwoven with project marketing. The study presents sleeping relationship which interrelates project buyer and sellers in the period of discontinuity. Furthermore, the function of a sleeping relationship and marketing action are discussed to understand the development of a sleeping relationship. The result is aimed to extend our understanding about project marketing.

The impact of horizontal and vertical connections on relationships' commitment and trust

Purpose – While an ever‐increasing body of research on business networks has commented on vertically connected relationships, this study embeds the horizontally connected relationships. Constructed on business network theories the paper aims to add more knowledge on business networks by developing a connection model including both vertical and horizontal connections. The model aims to explore the impact of connections on focal business relationships. It differentiates connected relationships on the basis of their vertical and horizontal natures. The purpose is to grasp the impact of these different connected relationships on the focal business relationship. The focal relationship elements are defined by commitment and trust, which capture their properties from the dyadic interaction and the two types of connected relationships.Design/methodology/approach – The paper tests the theoretical construction empirically. The empirical study is based on the IMP2 survey, utilizing information from extensive intervi...

Political actions in business networks a Swedish case

Abstract In international business studies, as well as in political science, the influence of political rules on business firms is assumed to be homogeneous and unidirectional. However, if the relationship between the political and the business actors is seen as an interaction, a different conclusion will be reached. We would like to add more knowledge to international business studies by analysing the interaction between governmental bodies and business units using a network model. In this paper, we study a ‘political case’ — the Bofors-India case — and analyse how this affair influenced other Swedish companies and their way of doing business in India. The question addressed is how the interaction between some parts of the government and a company — the development of one business relationship — is interwoven with other relationships. One conclusion reached is that a political act toward one MNC will affect other companies, although not in the same way. The degree to which and the way in which the other companies will be influenced depends on where they are positioned within the networks in relation to the problematic relationship.

Political risk for project‐selling firms: turbulence in relationships between business and non‐business actors

The subject of political risk for project‐selling firms has not been as thoroughly studied as it has for other international modes. This research aims to discuss the behavio‐of project‐selling firms when facing a sudden political crisis. It examines how political turmoil forces the firms to either stay in the market or exit from it and discusses why there is variety in their responses. The study presents three historical cases about three project‐selling firms and discusses the variety in their activities before, during, and after a political crisis. For the analysis, this paper employs the concepts of knowledge and commitment from the network model for the internationalization process. The case analysis is intended to generate a hypothesis about the types of business responses and the reasons for them.

Introduction: Opportunity Development in Business Networks

During the last few decades entrepreneurship has attracted a growing interest in both the business world and academia. It seems to be a general agreement that accelerating technological development and globalization require that national economies and industries grow rapidly enough to be competitive in this new world order. It is also believed that entrepreneurship is critical in promoting the necessary industrial growth and development. Opportunity is one of the core concepts in the entrepreneurship literature since it is generally assumed that opportunity seeking has a central role in entrepreneurship. The objective of this volume is to explore some issues in the landscape of business opportunity. Our exploration aims at examining business opportunity in a network perspective. The reasons are that cooperative inter-firm networks are frequently said to be effective in managing the forces of technological development and globalization, and that research has demonstrated that firms are engaged in networks of interconnected relationships.

Expectation as the Driving Force for Entry and Exit in the Turbulent Russian Market

Summary The market activities of international firms are now in unstable markets. Their decisions on how to act in such markets depend on their expectations of the future. The aim of this paper is to analyse the process of change in the expectations of a Swedish firm operating in the Russian market and facing dramatic market changes. To study the expectation behaviour of the firm, a longitudinal method covering the period from 1986 to 1993 is employed. The paper examines the expectation change process and the way the firm builds up its future market operation in order to penetrate, expand, and then exit from the Russian market. The absence of stability forced the firm to function either without any experiential knowledge or with knowledge that constantly lost its value. The thrust of this paper is grounded in the explanation that the basis of market activities rests on three forms of expectations: institutional, relationship, and network. The expectation view captured in the study is process-based and was explored through the concepts of commitment and knowledge from the internationalisation process model.

The Three Pillars: Business, State and Society: MNCs in Emerging Markets

The effort in this chapter is to capture some of the relationships between the three pillars in emerging markets. It is an attempt to endow with knowledge on how MNCs manage their business, social and political relationships in emerging markets. The theoretical and empirical facts are to aid understanding of the differences between developed and emerging countries. Further, the discussions express on the heterogeneity and how the three pillars vary in between the emerging countries. The extensive difference in between these countries, the vital role of social and political relationships together with the rapid development and less developed institutional regulations is explained to challenge the MNCs when managing their businesses. The chapter affirms the weakness in the existing theoretical views and claim for the need for development of new theoretical views adapted for these economies.

Managing stability and crises in business relationships: The case of Ericsson in an emerging market

Purpose – Adding to the theoretical view of relationship development, this paper holds the view that relationship change encompasses not only smooth incremental change but also includes crises which can trigger relationship weakening, dissolution and/or recovery. The aim is to develop a theoretical view that allows understanding of both smooth incremental and critical changes in the process of relationship development. Design/methodology/approach – Based on a business network perspective, the papers relationship view holds uncertainty, commitment and trust as central explanatory elements. The process view is composed of three episodes: incremental relationship development; relationship crisis; and ending or survival. The paper employs a longitudinal case study method and discusses how the relationship between the Swedish firm, Ericsson, and its counterpart, Telefonica, develops in the emerging market of Argentina during the period of 1998-2004. Findings – Conclusions demonstrate the vulnerability of rela...

Internationalisation process in turbulent and stable markets: Do firms know that they do not know?

Internationalisation process in turbulent and stable markets: Do firms know that they do not know?

Corporate social responsibility as a marketing strategy in foreign markets : The case of Korean MNCs in the Chinese electronics market

Purpose – The authors are witnessing the increasing extent of corporate social responsibility (CSR) performance as strategic behaviour specifically in emerging markets. The purpose of this paper is to investigate how multinational companies (MNCs) manage CSR activities in emerging markets to aid their core business activities. In line with this question, the paper aims to develop a theoretical view for deeper understanding of the strategy in CSR practices aiding internationalization. The view is based on a business network perspective highlighting the four concepts of learning, commitment, legitimacy and trust. Design/methodology/approach – The methodology employed is qualitative, based on interviews with involved parties. The case study is about the experiences of a Korean MNC’s CSR strategy when entering into the Chinese electronics industry. Findings – The case illustrates how the Korean MNC committed resources to gain trust and legitimacy that improved their market position. It further manifests that ...