From intermediary relationship to multiple relationships – option of developing the network position in the internationalisation process. An exploratory study of a Polish food company
Łukasz Małys
Faculty of International Business and Economics, Poznan University of Economics and Businesshttps://orcid.org/0000-0003-3078-1170
Krzysztof Fonfara
Faculty of International Business and Economics, Poznan University of Economics and Businesshttps://orcid.org/0000-0003-0327-486X
Abstract
Traditionally, the internationalisation process of a company has been analysed from the perspective of entering foreign markets. Currently, it is often analysed within the so-called network models, which take into account the importance of business relationships. The process of entry is not understood as a process of entering a foreign market, but a process of entering a network of business relationships on a foreign market. Insidership in such networks is necessary for successful internationalisation. Being an insider in the network means having a certain network position.
The aim of the paper is to identify based on a pilot study the possible way of building network position on foreign markets by Polish food companies. The paper will present a picture of one company, focusing on its operations on German market since the entry in 2006. The researched company started building network position on foreign markets by developing a strong relationship with one actor, who acted as key intermediary with the market. As a result of major change in the business environment, the company decided to revise the strategy and develop a number of weaker links with various actors. The paper presents a number of questions which raise from a pilot study and require further investigation.
Keywords:
internationalisation process, network position, business networksReferences
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liability of Foreignness to Liability of Outsidership. Journal of International Business Studies,
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Helm.
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of Knowledge Development and Increasing Foreign Market Commitments. Journal of International
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tb00514.x.
Kawa, A. (2017). Orientacja sieciowa przedsiębiorstw branży usług logistycznych. Poznań: Wydawnictwo
Uniwersytetu Ekonomicznego w Poznaniu.
Knight, G., & Cavusgil, S. (2004). Innovation, organizational capabilities, and the born-global
firm. Journal of International Business Studies, 35(2), 124-141. https://doi.org/10.1057/palgrave.
jibs.8400071.
Lambert, D.M., & Cooper, M.C. (2000). Issues in supply chain management. Industrial Marketing
Management, 29(1), 65-83. https://doi.org/10.1016/S0019-8501(99)00113-3.
Leszczyński, G., & Zieliński, M. (2013). The impact of misaligned business communication on the
quality of salesperson-buyer relationships. Poznan University of Economics Review, 13(2), 106-135.
Lin, H.-M., Huang, H.-C., Lin, C.-P., & Hsu, W.-C. (2012). How to manage strategic alliances in
OEM-based industrial clusters: Network embeddedness and formal governance mechanisms.
Industrial Marketing Management, 41(3), 449-459. https://doi.org/10.1016/j.indmarman.2011.04.003.
Möller, K., & Halinen, A. (1999). Business relationships and networks: managerial challenge
of network era. Industrial Marketing Management, 28(5), 413-427. https://doi.org/10.1016/
S0019-8501(99)00086-3.
Möller, K., Rajala, A., & Svahn, S. (2005). Strategic business nets – their type and management.
Journal of Business Research, 58(9), 1274-1284. https://doi.org/10.1016/j.jbusres.2003.05.002.
Morgan, R.M., & Hunt, S.D. (1994). The Commitment-Trust Theory of Relationship Marketing.
Journal of Marketing, 58(3), 20-38. https://www.jstor.org/stable/1252308.
No Business is an Island: Making Sense of the Interactive Business World. 2017. H. Håkansson
& I. Snehota (Eds.). Emerald Publishing.
Ratajczak-Mrozek, M. (2017). Network Embeddedness. Examining the Effect on Business Performance
and Internationalization. Cham, Switzerland: Palgrave Macmillan,.
Ratten, V., Dana, L.-P., Han, M., & Welpe, I. (2007). Internationalisation of SMEs: European comparative
studies. International Journal of Entrepreneurship and Small Business, 4(3), 361-379.
Reid, S. (1981). The Decision-Maker and Export Entry and Expansion. Journal of International
Business Studies, 12(2), 101-112. https://doi.org/10.1057/palgrave.jibs.8490581.
Schary, P.B., & Skjøtt-Larse, T. (2002). Zarządzanie globalnym łańcuchem podaży. Warszawa:
Polskie Wydawnictwo Ekonomiczne.
The Development of Business Networks in the Company Internationalisation Process. 2012.
K. Fonfara (Ed.). Poznań: Poznań University of Economics Press.
study of strategizing in business networks. Review article. Industrial Marketing Management,
59, 107-119. https://doi.org/10.1016/j.indmarman.2016.02.006.
Anderson, J.C., Håkansson, H., & Johanson J. (1994). Dyadic Business Relationships within a Business
Network Context. Journal of Marketing, 58(4), 1-15. https://www.jstor.org/stable/1251912.
Anderson, O. (1993). On The Internationalization Process of Firms: a Critical Analysis. Journal
of International Business Studies, 24(2), 209-231. https://doi.org/10.1057/palgrave.jibs.8490230.
Axinn, C.N., & Matthyssens, P. (2001). Limits of internationalization theories in an unlimited world.
International Marketing Review, 19(5), 436-449. https://doi.org/10.1108/02651330210445275.
Borgatti, S.P., & Li, X. (2009). On network analysis in a supply chain context. Supply Chain Management,
45(2), 5-22. https://doi.org/10.1111/j.1745-493X.2009.03166.x.
Buckley, P., & Ghauri, P. (2004). Globalisation, economic geography and the strategy of multinational
companies. Journal of International Business Studies, 35(2), 81-98. https://doi.org/10.1057/
palgrave.jibs.8400076.
Burt, R. (1992). Structural Holes. Cambridge: Harvard University Press, Mass.
Cavusgil, S.T. (1980). On the internationalization process of firms. European Research, 8, 273-281.
Coleman, J.S. (1988). Organizations and Institutions: Sociological and Economic Approaches to
the Analysis of Social Structure. The American Journal of Sociology, 94, 95-120. https://doi.
org/10.1086/228943.
Coviello, N.E., & Munro, H.J. (1997). Network relationships and the Internationalisation Process
of Small Software Firms. International Business Review, 6(4), 361-386. https://doi.org/10.1016/
S0969-5931(97)00010-3.
Deszczyński, B., Fonfara, K., & Dymitrowski, A. (2017). The Role of Relationships in Initiating
the Internationalisation Process in B2B Markets. Entrepreneurial Business and Economics
Review, 5(4), 91-109. https://doi.org/10.15678/EBER.2017.050404.
Dolfsma, W., & van der Eijk, R. (2016). Network position and firm performance – the mediating
role of innovation. Technology Analysis & Strategic Management, 29(6), 556-568. https://doi.org
/10.1080/09537325.2016.1216095.
Dyer, J.H. (2000). Collaborative advantage: Winning through extended company supplier networks.
Oxford: Oxford University Press.
Dymitrowski, A. (2014). The Role of Innovations Created in the Internationalization Process for
Company Performance. Warszawa: Wyd. Nauk. PWN.
Dymitrowski, A., Małys, Ł., & Ratajczak-Mrozek, M. (2012). Forms of internationalisation and
company performance (research results). In T. Rynarzewski (Ed.). Modern World Economy.
Micro- and Macroeconomic Issues. Zeszyty Naukowe Uniwersytetu Ekonomicznego w Poznaniu,
219, 212-222.
Ford, D., Gadde, L.E., Håkansson, H., & Snehota, I. (2011). Managing Business Relationships.
3rd Edition. London: John Wiley.
Giannakis, M., Doran, D., & Chen. S. (2012). The Chinese paradigm of global supplier relationships:
Social control, formal interactions and the mediating role of culture. Industrial Marketing
Management, 41(5), 831-840. https://doi.org/10.1016/j.indmarman.2012.06.008.
Globalization: Theory and practice. (2008). 3rd edition. E. Kofman & G. Youngs (Eds). London:
The Continuum International Publishing Group.
Granovetter, M. (1977). The Strength of Weak Ties. In S. Leinhardt (Ed.). Social Networks.
A Developing Paradigm. London: Academic Press, p. 347-367. https://doi.org/10.1016/
B978-0-12-442450-0.50025-0.
Granovetter, M. (1985). Economic action and social structure: The problem of embeddedness.
American Journal of Sociology, 91(3), 481-510. https://doi.org/10.1086/228311.
Green, K.W., Whitten, D., & Inman, R.A. (2012). Aligning marketing strategies throughout
the supply chain to enhance performance. Industrial Marketing Management, 41(6), 1008–1018.
https://doi.org/10.1016/j.indmarman.2012.02.003.
Gulati, R., Nohria, N., & Zaheer, A. (2000). Strategic networks. Strategic Management Journal, 21(3),
203- 215. https://doi.org/10.1002/(SICI)1097-0266(200003)21:3<203::AID-SMJ102>3.0.CO;2-K.
Gulati, R., Puranam, P., & Tushman, M. (2012). Meta-organization design: Rethinking design in
interorganizational and community contexts. Strategic Management Journal, 33(6), 571-586.
https://doi.org/10.1002/smj.1975.
Håkansson, H., Ford, D., Gadde, L.-E., Snehota, I., & Waluszewski, A. (2009). Business in Networks.
Chichester: John Wiley & Sons.
Handbook of organizational learning and knowledge management. (2011). M. Easterby-Smith
& M.A. Lyles (Eds.). London: John Wiley and Sons.
Hedberg, B., Dahlgren, G., Hansson, J., & Olve, N.G. (1997). Virtual Organizations and Beyond:
Discover Imaginay Systems. Chichester: John Wiley & Sons.
Hohenthal, J., Johanson, J., & Johanson, M. (2014). Network knowledge and business-relationship
value in the foreign market. International Business Review, 23(1), 4-19. https://doi.org/10.1016/j.
ibusrev.2013.08.002.
Holmen, E., & Pedersen, A.-C. (2003). Strategizing through analyzing and influencing the network
horizon. Industrial Marketing Management, 32(5), 409-418. https://doi.org/10.1016/
S0019-8501(03)00014-2.
Inkpen, A.C., & Tsang, E.W. 2005. Social Capital, Networks and Knowledge Transfer. Academy
of Management Review, 30(1), 146-165. https://doi.org/10.5465/amr.2005.15281445.
Jarillo, J.C. (1988). On Strategic Networks. Strategic Management Journal, 9(1), 31-41. https://
doi.org/10.1002/smj.4250090104.
Johanson, J., & Vahlne, J. (2009). The Uppsala internationalization process model revisited: From
liability of Foreignness to Liability of Outsidership. Journal of International Business Studies,
40(9), 1411-1431. https://doi.org/10.1057/jibs.2009.24.
Johanson, J., & Mattsson, L.-G. (1988). Internationalisation in Industrial Systems – A Network
Approach. In N. Hood & J.E. Vahlne (Eds.). Strategies in Global Competition. London: Croom
Helm.
Johanson, J., & Vahlne, J.-E. (1977). The Internationalization Process of the Firm. A Model
of Knowledge Development and Increasing Foreign Market Commitments. Journal of International
Business Studies, 8(1), 23-32. https://doi.org/10.1057/palgrave.jibs.8490676.
Johanson, J., & Wiedersheim-Paul, F. (1975). The internationalization of the Firm – Four Swedish
Cases. Journal of Management Studies, 12(3), 305-323. https://doi.org/10.1111/j.1467-6486.1975.
tb00514.x.
Kawa, A. (2017). Orientacja sieciowa przedsiębiorstw branży usług logistycznych. Poznań: Wydawnictwo
Uniwersytetu Ekonomicznego w Poznaniu.
Knight, G., & Cavusgil, S. (2004). Innovation, organizational capabilities, and the born-global
firm. Journal of International Business Studies, 35(2), 124-141. https://doi.org/10.1057/palgrave.
jibs.8400071.
Lambert, D.M., & Cooper, M.C. (2000). Issues in supply chain management. Industrial Marketing
Management, 29(1), 65-83. https://doi.org/10.1016/S0019-8501(99)00113-3.
Leszczyński, G., & Zieliński, M. (2013). The impact of misaligned business communication on the
quality of salesperson-buyer relationships. Poznan University of Economics Review, 13(2), 106-135.
Lin, H.-M., Huang, H.-C., Lin, C.-P., & Hsu, W.-C. (2012). How to manage strategic alliances in
OEM-based industrial clusters: Network embeddedness and formal governance mechanisms.
Industrial Marketing Management, 41(3), 449-459. https://doi.org/10.1016/j.indmarman.2011.04.003.
Möller, K., & Halinen, A. (1999). Business relationships and networks: managerial challenge
of network era. Industrial Marketing Management, 28(5), 413-427. https://doi.org/10.1016/
S0019-8501(99)00086-3.
Möller, K., Rajala, A., & Svahn, S. (2005). Strategic business nets – their type and management.
Journal of Business Research, 58(9), 1274-1284. https://doi.org/10.1016/j.jbusres.2003.05.002.
Morgan, R.M., & Hunt, S.D. (1994). The Commitment-Trust Theory of Relationship Marketing.
Journal of Marketing, 58(3), 20-38. https://www.jstor.org/stable/1252308.
No Business is an Island: Making Sense of the Interactive Business World. 2017. H. Håkansson
& I. Snehota (Eds.). Emerald Publishing.
Ratajczak-Mrozek, M. (2017). Network Embeddedness. Examining the Effect on Business Performance
and Internationalization. Cham, Switzerland: Palgrave Macmillan,.
Ratten, V., Dana, L.-P., Han, M., & Welpe, I. (2007). Internationalisation of SMEs: European comparative
studies. International Journal of Entrepreneurship and Small Business, 4(3), 361-379.
Reid, S. (1981). The Decision-Maker and Export Entry and Expansion. Journal of International
Business Studies, 12(2), 101-112. https://doi.org/10.1057/palgrave.jibs.8490581.
Schary, P.B., & Skjøtt-Larse, T. (2002). Zarządzanie globalnym łańcuchem podaży. Warszawa:
Polskie Wydawnictwo Ekonomiczne.
The Development of Business Networks in the Company Internationalisation Process. 2012.
K. Fonfara (Ed.). Poznań: Poznań University of Economics Press.
Małys, Łukasz, & Fonfara, K. (2019). From intermediary relationship to multiple relationships – option of developing the network position in the internationalisation process. An exploratory study of a Polish food company. Olsztyn Economic Journal, 14(2), 209–221. https://doi.org/10.31648/oej.3972
Łukasz Małys
Faculty of International Business and Economics, Poznan University of Economics and Business
https://orcid.org/0000-0003-3078-1170
Faculty of International Business and Economics, Poznan University of Economics and Business
https://orcid.org/0000-0003-3078-1170
Krzysztof Fonfara
Faculty of International Business and Economics, Poznan University of Economics and Business
https://orcid.org/0000-0003-0327-486X
Faculty of International Business and Economics, Poznan University of Economics and Business
https://orcid.org/0000-0003-0327-486X
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