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Exploring relationship satisfaction between global professional service firms and local clients in emerging markets

Author

Listed:
  • Wenyu Dou

    (Department of Marketing, City University of Hong Kong, Kowloon, Hong Kong)

  • Hairong Li

    (Department of Advertising, Public Relations, and Retailing, Michigan State University, USA)

  • Nan Zhou

    (Department of Marketing, City University of Hong Kong, Kowloon, Hong Kong)

  • Chenting Su

    (Department of Marketing, City University of Hong Kong, Kowloon, Hong Kong)

Abstract

Extending the perspective of agency theory, this study incorporates both professional and local knowledge asymmetry into a model of relationship satisfaction between global professional service firms and their local clients. The model also includes learning orientation and adaptation that are theorized to regulate the impact of knowledge asymmetry on goal incongruence, which ultimately affects relationship satisfaction. China was selected as the setting of the study because it is the largest emerging market, has seen double-digit growth of advertising expenditures for the past two decades, and is home to many multinational advertising agencies that have increasingly pursued local clients as revenue sources. Multiple informants from 177 domestic Chinese firms and their multinational advertising agencies were personally interviewed, and the dyadic data were used to test the model. Results show that both types of knowledge asymmetry lead to goal incongruence, which causes client dissatisfaction. The role of learning orientation varies, as does the role of adaptation, in moderating the impact of knowledge asymmetry on goal incongruence and the impact of goal incongruence on relationship satisfaction. Theoretical and managerial implications of the findings are discussed, along with the limitations of the study and future research directions.

Suggested Citation

  • Wenyu Dou & Hairong Li & Nan Zhou & Chenting Su, 2010. "Exploring relationship satisfaction between global professional service firms and local clients in emerging markets," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(7), pages 1198-1217, September.
    • Handle: RePEc:pal:jintbs:v:41:y:2010:i:7:p:1198-1217
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    Cited by:

    1. Ghasem Zaefarian & Matthew J. Robson & Zhaleh Najafi-Tavani & Stavroula Spyropoulou, 2023. "Relationships of stressors and opportunism in cross-border exchange partnership contexts: When and how monitoring matters," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 54(3), pages 441-475, April.
    2. Aykol, Bilge & Leonidou, Leonidas C., 2018. "Exporter-importer business relationships: Past empirical research and future directions," International Business Review, Elsevier, vol. 27(5), pages 1007-1021.
    3. Da Huo, 2013. "Cluster Analysis of Market Potential in Emerging Markets: A Dynamic Research based on Markov Chain," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 218-231, December.
    4. Tao Bai & Stephen Chen & Xiao He, 2019. "How Home-Country Political Connections Influence the Internationalization of Service Firms," Management International Review, Springer, vol. 59(4), pages 541-560, August.
    5. Yadong Luo & Huan Zhang & Juan Bu, 2019. "Developed country MNEs investing in developing economies: Progress and prospect," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(4), pages 633-667, June.
    6. Leonidou, Leonidas C. & Aykol, Bilge & Fotiadis, Thomas A. & Christodoulides, Paul & Zeriti, Athina, 2017. "Betrayal in international buyer-seller relationships: Its drivers and performance implications," Journal of World Business, Elsevier, vol. 52(1), pages 28-44.
    7. Siqueira, Ana Cristina O. & Priem, Richard L. & Parente, Ronaldo C., 2015. "Demand-side Perspectives in International Business: Themes and Future Directions," Journal of International Management, Elsevier, vol. 21(4), pages 261-266.
    8. Dhahri, Sabrine & Omri, Anis, 2020. "Foreign capital towards SDGs 1 & 2—Ending Poverty and hunger: The role of agricultural production," Structural Change and Economic Dynamics, Elsevier, vol. 53(C), pages 208-221.
    9. G. Tomas M. Hult & Forrest V. Morgeson III & Udit Sharma & Claes Fornell, 2022. "Customer satisfaction and international business: A multidisciplinary review and avenues for research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(8), pages 1695-1733, October.
    10. Ghantous, Nabil & Das, Shobha S. & Chameroy, Fabienne, 2018. "Governance capabilities and relationship performance in international franchising," Journal of Retailing and Consumer Services, Elsevier, vol. 40(C), pages 19-30.
    11. Alicia Rodríguez & María Jesús Nieto, 2016. "Does R&D offshoring lead to SME growth? Different governance modes and the mediating role of innovation," Strategic Management Journal, Wiley Blackwell, vol. 37(8), pages 1734-1753, August.
    12. Ravi Sarathy & Elitsa R. Banalieva, 2014. "Economic Development And Marketing Strategies: A Comparative Lens," Organizations and Markets in Emerging Economies, Faculty of Economics, Vilnius University, vol. 5(1).
    13. Zahoor, Nadia & Khan, Zaheer & Shenkar, Oded, 2023. "International vertical alliances within the international business field: A systematic literature review and future research agenda," Journal of World Business, Elsevier, vol. 58(1).
    14. Paul Caussat, 2021. "Competitive Advantages in a Hostile, Regulated Environment: Four Multinational Banks in India," Management International Review, Springer, vol. 61(6), pages 831-879, December.
    15. Keith D. Brouthers & Liang Chen & Sali Li & Noman Shaheer, 2022. "Charting new courses to enter foreign markets: Conceptualization, theoretical framework, and research directions on non-traditional entry modes," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(9), pages 2088-2115, December.
    16. Denitsa Hazarbassanova Blagoeva & Peter D. Ørberg Jensen & Hemant Merchant, 2020. "Services in International Business Studies: A Replication and Extension of Merchant and Gaur (2008)," Management International Review, Springer, vol. 60(3), pages 427-457, June.

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