Formation of relationships in VSE internationalisation: chicken or golden egg?

Abstract

The main aim of this study was to examine the significance of various relationship types upon the international ambitions of the resource stricken very small enterprise (VSE). Semi-structured in-depth interviews with managing proprietors from seven New Zealand firms reveal a number of common types of relationship greatly impacted upon their ability to internationalise. The rich qualitative approach employed also reveals a variance in the manner the VSE builds and nurtures these relationships. Those employing a transaction cost perspective were inclined to view relationships as the prime mechanism to attain pecuniary and related foreign market outcomes. Conversely, those approaching them from a social exchange perspective viewed relationship formation and maintenance as the prime internationalisation outcome in itself. These findings could have wide ranging theoretical and managerial implications and some are highlighted.