The goal development process for value co-creation between off-shore partners: New Zealand vs China

Abstract

With the trend of globalization around the world, internationalization has become a popular topic amongst various industries. While there are various pieces of literature on internationalization, a lack of understanding for goal development and value co-creation was found. This research targets the gaps in the existing literature to identify and create a framework to provide the ideal goal development process for off-shore partners to co-create value and opportunities. Due to the increasing trading frequency between New Zealand and China, New Zealand small and medium-sized enterprises (NZ SME) and Chinese distribution companies have been chosen to be the focus of the research. The research, therefore, provides insights on how NZ SMEs can enter the Chinese market and establish themselves to, in turn, generate mutually beneficial value and opportunities with their off-shore partners. Based on the revisited Uppsala model and the effectual Uppsala model, the interviews of the study were designed to retrieve information and findings to concur, oppose or extend on the existing models and literature. A dyadic approach has been chosen as the methodology of the research to compare and contrast the insights gathered from each side of the partnership. This helps to minimize any potential bias and allows the researcher to easily identify the overlapping findings. By combining the information gathered from the interviews and the existing literature, a conceptual framework of the ideal process of goal development was formed. The conceptual framework covers the entire partnership process from partnership selection, goal development to partnership management. Each part of the process contributes greatly to the success of a company's internationalization and foreign market performance. The main findings drawn from this research suggests that partnership selection relies heavily on one's experience, knowledge, and compatibility. Furthermore, goal misalignment has been identified to be a common challenge amongst the majority of foreign partners. Different approaches to improve communication has been suggested in the research. Lastly, NZ SMEs has been identified to be relaxed and flexible, while the Chinese distributors believe strongly in closeness and 'guanxi'. These cultural traits and characteristics have raised additional findings and contribution to the conceptual framework.