This research addresses the problem: How do cross-cultural influences
affect interorganisational formation and maintenance international business
networks? In particular, the two concepts of stages of network development and
psychic distance in partner selection are explored. A partnership between educational
institutions and small and medium enterprises in developing trade relationships
in the Asia Pacific region are analysed is analysed in depth. This cross-cultural
business network did not appear to develop through clearly defined, predictable
stages and all dimensions of culture appeared to consistently influence the networks'
development. It seems that personal and business networks are important for both
partners (not only for Chinese Malaysians) but if these networks are not consciously
linked or expanded jointly, very little basis for cross-cultural understanding is built.
An investment in a cross-cultural network should be a multi-faceted and long term
financial, organisational and personal investment, which will have to change in
ways that are difficult to forecast except to say that they will be needed if
the network is not to eventually die
