It is claimed that participation and innovation in emerging economies will set the competitiveness agenda for MNCs in the future. There is currently a need for more knowledge on the peculiarities of innovating in these markets, including the even more profound need for interaction and relationship building between actors from different sectors in society. The aim of this paper is, therefore, to reach a better understanding of the impact of the interaction between various actors, both business and socio-political, for the innovative performance of MNCs in emerging markets. We apply a business network view of innovation including business relationships in general and relationships to civil society actors in particular, using the relational concepts of trust, knowledge and cultural compatibility to analyse the process at hand. A case study was conducted of the MNC-led project 'Amazon Connection', which enabled connectivity in the distant Amazonian region of Para, Brazil.

Purpose – Adding to the theoretical view of relationship development, this paper holds the view that relationship change encompasses not only smooth incremental change but also includes crises which can trigger relationship weakening, dissolution and/or recovery. The aim is to develop a theoretical view that allows understanding of both smooth incremental and critical changes in the process of relationship development.

Design/methodology/approach – Based on a business network perspective, the paper's relationship view holds uncertainty, commitment and trust as central explanatory elements. The process view is composed of three episodes: incremental relationship development; relationship crisis; and ending or survival. The paper employs a longitudinal case study method and discusses how the relationship between the Swedish firm, Ericsson, and its counterpart, Telefónica, develops in the emerging market of Argentina during the period of 1998-2004.

Findings – Conclusions demonstrate the vulnerability of relationships due to counterparts' behaviour and network embeddedness. This is a risk of commitment deterioration, and remedial actions like investment in new commitments will reduce distrust and uncertainty. Re-energizing relationships incrementally requires behaviour like waiting strategies, when otherwise the choice is to exit.

Originality/value – Few researchers have combined the findings from stable relationship development studies with the findings from research on crisis into one model handling both stability and instability in business relationships. This is despite the fact that episodes of turbulence and instability are becoming more common in business relationships, due to entrance into more unstable markets, and markets crises of various types.

The role of society for the development of multinational companies’ (MNC) business has so far not attracted much scholarly attention in international marketing. Responding to recent calls for further research relating MNCs with society, the aim of this thesis is to enhance the understanding of the MNC relationship with society. Standing on the business network perspective, the theoretical view includes society in the network. Apart from business actors, the view incorporates public actors (such as governments) and civil society actors (such as Non-Governmental Organizations). Thus, contrary to earlier business network studies, the MNC relationships with non-business actors are explicitly handled as part of the business network in this thesis.

For the fulfillment of the aim - understanding the MNC relationship with society - the study applies the four relationship elements knowledge, commitment, trust and legitimacy. In further developing the theoretical view, the results from the empirical and theoretical findings in the papers, along with others’ contributions in this field, have inspired the development of interdependence in relationships. Consequently, the main emphasis in the ‘Thesis Summary’ is put on a deeper theoretical discussion of the concept of interdependence. The interdependence framework maps different relationship types with business and non-business actors in business networks. The implications on the management of the different types of relationships are also further developed.

The empirical study, which inspired the theoretical development, concerns a qualitative and abductive case study of a Swedish MNC’s relationships with actors from the business, public and civil society sectors in Argentina and Brazil. The study is based on 51 interviews, observations and documentation as its main data sources. It resulted in four papers, which were developed in the areas of crisis, subsidiary strategy, radical innovation and expansion to the rural ‘Base of the Pyramid’, all applying a relational perspective.

The thesis has both empirical and theoretical contributions. The major empirical contribution concerns the behavior of MNCs in emerging economies in relation to society. The theoretical development contributes deeper exploration of business relationships and network perspectives in the context of society, adding a novel employment of the same. 

Purpose– The purpose of this paper is to discuss how network relationships, with business as well as with non-business actors, affect each other and have an impact on strategy processes in subsidiaries in Latin America.

Design/methodology/approach– A qualitative approach is used in which a new strategy in a European multinational company (MNC) is studied at the subsidiary level in Brazil and Argentina. The authors discuss why the strategic processes are so different within the same MNC. During 2009-2011, 50 interviews were conducted with respondents in Latin America and at headquarters.

Findings– The results point to the importance of including relationships with both business and non-business actors to understand the subsidiary strategy processes. The authors suggest that such processes can be explained by interdependent relationships in a wider network context characterised by commitment and trust, leading to increased legitimacy among the actors involved.

Practical implications– Managers need to invest in relationships not only with business counterparts but also with non-business actors, as they are interdependent and vital for the strategy development.

Originality/value– Relationships between firms and actors such as governments and civil society are still under-researched, although they are essential, especially in emerging economies. The paper puts focus on network relationships in strategy research and contributes to the development of business network theory by extending the network to also include relationships with such non-business actors and relate it to strategy processes. There is also a contribution to research on corporate social responsibility activities with a specific focus on Latin America.