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Establishment Processes and Building Relationships in Latin American Countries: The Case of Swedish Firms in Mexico
Växjö University, Faculty of Humanities and Social Sciences, School of Management and Economics.ORCID iD: 0000-0002-3055-1108
2008 (English)In: International Journal of Automotive Industry and Management (IJAIM), ISSN 1976-7307, Vol. 2, no 1, p. 23-48p. 23-48Article in journal (Refereed) Published
Abstract [en]

This paper addresses the establishment processes of two Swedish companies in the automotive

industry in Mexico by applying an establishment process model. An exploratory case study is

applied as a research method. One of the main findings of the article is that in both bus and truck

segments (sectors), there are well developed and tightly structured networks which function more or

less in the same way as the networks and relationships in developed countries although Mexico is a

developing country. Another finding is that the level of trust with the Scania's customers differs in the

two segments. In the bus segment the relationship with customers is dominated by cooperation and

trust, whereas in the truck segment it does not as the market has more trust in other brands than in

Scania's products and services. A third finding is that Scania's competitive advantages rely on its

complete solution which includes trucks, parts and services and on its cooperation with some competitors

and strong relations with authorities. While Volvo's competitive advantages are based on its

strong dealers network strengthened through complete solution including training, new financing and

selling programs, i.e. offering integrated services and cooperation with some competitors & strong

relations with authorities. A fourth finding is that in the Mexican market, government relationships are

as important as customer relations and should be dealt with adequately if firms are going to succeed

in their establishment attempts.

Place, publisher, year, edition, pages
2008. Vol. 2, no 1, p. 23-48p. 23-48
Keywords [en]
Keywords - Automotive industry, Networks, Relationships and interaction approach, Strategic alliance, TRM, International market entry, Internationalization
National Category
Economics and Business
Research subject
Economy
Identifiers
URN: urn:nbn:se:vxu:diva-2650OAI: oai:DiVA.org:vxu-2650DiVA, id: diva2:202596
Available from: 2009-08-11 Created: 2004-01-01 Last updated: 2016-05-03Bibliographically approved

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Zineldin, Mosad

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CiteExportLink to record
Permanent link

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Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf