Social ties and foreign market entry

The social dynamics which precede international exchange are considered in light of data collected on 133 foreign market entries from a sample of highly-internationalized manufacturing firms. Consistent with research done in the social network field, the findings support the hypothesis that knowledge of foreign market opportunities is commonly acquired via existing interpersonal links rather than collected systematically via market research. This study thus contributes towards an understanding of those antecedent conditions that lead to the formation of export exchange relationships.