Managing the challenges of piggybacking into international markets

Stephen Mark Rosenbaum, Tage Koed Madsen*, Henrik Johanning

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Resumé

Purpose: The purpose of this paper is to understand the process by which piggybacking partners attempt to overcome the challenges of interfirm diversity when entering foreign markets. Design/methodology/approach: The authors present a longitudinal case study following the collaboration between a rider (a small software developer) and carrier (a global player in software solution distribution) as a means of co-creating value for global customers in the pharmaceutical industry. Findings: The authors find that despite differential size and incongruent organizational cultures, top managers were still initially able to facilitate collaboration through various knowledge-sharing initiatives, but that these efforts were subsequently undermined by middle managers (due to misaligned incentives), which prevented both parties from reaping the gains of piggybacking on global markets. Research limitations/implications: The findings have a number of implications for academics and practitioners alike. Theoretical implications include treating piggybacking as a special case of indirect exporting with particular challenges for knowledge exchange and trust building. Practical implications: The authors offer managerial implications for reconciling divergent organizational cultures, partner selection and incentive alignment. Originality/value: This appears to be the first paper to empirically assess the viability of piggybacking as a foreign entry mode by examining the crucial processes of knowledge sharing and trust development within piggybacking arrangements.

OriginalsprogEngelsk
TidsskriftInternational Marketing Review
Vol/bind36
Udgave nummer1
Sider (fra-til)56-73
Antal sider18
ISSN0265-1335
DOI
StatusUdgivet - 2019

Fingeraftryk

Knowledge sharing
International markets
Software
Organizational culture
Developer
Design methodology
Viability
Pharmaceutical industry
Middle managers
Longitudinal case study
Partner selection
Foreign entry
Incentive alignment
Incentives
Global market
Managers
Knowledge exchange
Exporting
Entry mode

Citer dette

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Managing the challenges of piggybacking into international markets. / Rosenbaum, Stephen Mark; Madsen, Tage Koed; Johanning, Henrik.

I: International Marketing Review, Bind 36, Nr. 1, 2019, s. 56-73.

Publikation: Bidrag til tidsskriftTidsskriftartikelForskningpeer review

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AB - Purpose: The purpose of this paper is to understand the process by which piggybacking partners attempt to overcome the challenges of interfirm diversity when entering foreign markets. Design/methodology/approach: The authors present a longitudinal case study following the collaboration between a rider (a small software developer) and carrier (a global player in software solution distribution) as a means of co-creating value for global customers in the pharmaceutical industry. Findings: The authors find that despite differential size and incongruent organizational cultures, top managers were still initially able to facilitate collaboration through various knowledge-sharing initiatives, but that these efforts were subsequently undermined by middle managers (due to misaligned incentives), which prevented both parties from reaping the gains of piggybacking on global markets. Research limitations/implications: The findings have a number of implications for academics and practitioners alike. Theoretical implications include treating piggybacking as a special case of indirect exporting with particular challenges for knowledge exchange and trust building. Practical implications: The authors offer managerial implications for reconciling divergent organizational cultures, partner selection and incentive alignment. Originality/value: This appears to be the first paper to empirically assess the viability of piggybacking as a foreign entry mode by examining the crucial processes of knowledge sharing and trust development within piggybacking arrangements.

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