Forming and maintaining cross-cultural interorganisational networks

Abstract

This research addresses the problem: How do cross-cultural influences affect interorganisational formation and maintenance international business networks? In particular, the two concepts of stages of network development and psychic distance in partner selection are explored. A partnership between educational institutions and small and medium enterprises in developing trade relationships in the Asia Pacific region are analysed is analysed in depth. This cross-cultural business network did not appear to develop through clearly defined, predictable stages and all dimensions of culture appeared to consistently influence the networks' development. It seems that personal and business networks are important for both partners (not only for Chinese Malaysians) but if these networks are not consciously linked or expanded jointly, very little basis for cross-cultural understanding is built. An investment in a cross-cultural network should be a multi-faceted and long term financial, organisational and personal investment, which will have to change in ways that are difficult to forecast except to say that they will be needed if the network is not to eventually die.