Exploring Perceptual Distances in Norwegian-Brazilian B2B Relationships

Abstract

In this paper we searched for the causes of critical events in Norwegian-Brazilian business relationships. Critical events were investigated through an explorative research design in dyadic business-to-business case studies. The theoretical definition of critical events and governance mechanisms is based on previous literature, and the empirical part consists of a combined approach using interviews to elaborate questionnaires. Data collection took place in Rio de Janeiro, over a period of five weeks. In total three dyads (business relationships between two firms) were investigated. In the first dyad, the average results showed significantly different perceptions among the parts, where the Brazilian side rated the cause of critical events as a result of lack of formal governance, and the Norwegian side as a lack of informal governance. In the second and third dyad, the parts agreed on lack of formal governance as the main cause of critical events. The correlation analysis showed that governance level appears not to be related to importance of critical events on the Norwegian companies. While on the Brazilian companies, events caused by formal governance mechanisms are associated with a higher level of importance, therefore partially confirming previous studies.