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• W299750934 abstract "EXECUTIVE SUMMARY Relatively little research has been undertaken in understanding how border firms operate, their unique competitive conditions, and relationships between firms and their customers. The sociological context includes commitment, trust, and communication between two parties and the economic dimension addresses dependence, joint action, and mutual adaptation. The results indicate that both social and economic dimensions impact interfirm relationships. Customer adaptation is impacted by adaptation by the focal firm and by economic dependence. Adaptation by the focal firm is influenced by economic dependence on the customer and joint decision-making. Commitment helps to foster trust and communication between seller and buyer, and communication in turn impacts joint action. Key words: social exchange, dependence, joint action, and mutual adaptation INTRODUCTION The focus of our research is border firms. The well-developed and classical approaches of conceptualizing and studying international business are rarely used to examine border trade. Global strategy, foreign direct investment, interfirm linkages, and competitive advantage are central in analyzing business taking place on the U.S.-Mexico border. Relatively little research attention has been paid on how small- and medium-sized American firms on the border between the U.S. and Mexico operate. It is now well known that trade between the U.S. and its immediate neighbors is significant, yet studies in this area have been typically covered under exports and international trade. Less attention has been paid to the competitive aspect of business that takes place at the border. Indeed, a considerable portion of business at the border caters to international clients. This is true of border banks and transportation firms, as well as manufacturing and retail trade. In other words, buyers from across the border, and international customers, constitute the principal customers in many cases. How these border firms operate and the linkages they have with their international customers is the focus of this study. These include the sociological relations between two firms (a firm and its main customer) and include issues like commitment, trust, and communication, and the economic dimensions of business that cover dependence, joint action, and the process of mutual adaptation. In today's highly competitive business environment, there is intense pressure to improve the efficiency and effectiveness of firms involved both in manufacturing and those in service activities. Fundamentally, managers believe that this type of approach creates a more flexible, responsive partnership that contributes to a firm's overall performance. As a consequence, there is great interest in understanding exchange relationships between firms, particularly between firms and customers that are based on interpersonal relations, social factors, joint optimization, and long-term associations. This is to be contrasted with the earlier focus on costs, efficiency, market transactions, and a short-term orientation. Broadly, we develop and test a model that we have refined and in which we have included both well accepted constructs, as well as constructs that we suitably modified for the current research. It is generally accepted that firms are embedded in networks of other firms, specifically downstream customers, buyers, and distributors. Firm embed themselves for many reasons, and these include the acquisition of competitive advantage (McEvily & Marcus, 2005), shared goals, joint activities, and longterm prosperity. THEORY AND MODEL DEVELOPMENT The literature on the linkages among the principal constructs of our research framework is reasonably well developed. We make embeddedness in a network the starting and central point of our enquiry. Embeddedness, combining both economic and social relations between firms, helps a firm enhance its long-term survival. Social and economic embeddedness likely creates the resources, skills, and capabilities for a firm to develop capabilities that it could not do so alone. …" @default.
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• W299750934 date "2007-01-01" @default.
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• W299750934 title "The Competitive Environment of U.S. Firms: The Social and Economic Context of Business on the Mexican Border" @default.
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