Balancing intermediated relationships in emerging country markets

This study concerns a major strategic issue for firms entering emerging country markets via intermediaries, namely, how to make an efficient trade-off between linking up to the final customer and the intermediary. We argue that an effective trade-off is a long-term relationship building process based on business and social exchange that creates knowledge reciprocity and a mutual orientation. It occurs through feedback processes in which the knowledge of the exporter is exploited and new knowledge about the local market is explored together with the intermediary. This is a balancing act, where the roles of the parties' changes over time as new capabilities are developed based on joint experiences.