global in nature (Törnroos, 2000),

global in nature (Törnroos, 2000), enabling firms to capitalise on their network connections and the resources and specialist activities of actors within their networks.
International networking is not confined to large multinational firms. SMEs must focus on developing an international market presence, identifying partners to make the most of the opportunities that those international markets can offer (Blankenburg, 1995; Coviello and Munro, 1995). The trend of focusing on relationship and network development for internationalisation has not been limited to manufacturing industries, but involves many other industries within services and retailing (Christopher, 1992). However, research on internationalisation through networks has tended to focus on the networking process being driven by the influence and impetus of large manufacturing organisations (Lorenzoni and Baden-Fuller, 1995), in spite of the importance of small service and knowledge-based firms to the global economy. Such SMEs may be of particular interest, given that they may often be the source of important innovations, but possess limited experience capabilities and management resources for bringing their innovations to international markets (Coviello and Munro, 1997). Knight (2000) affirms that despite the importance of small- and medium-sized companies to international business, little research has considered the role of SME management and its link to marketing strategy, tactics and corporate performance. Despite the fact that SMEs have become crucial players in national economies and in world trade (Knight, 2000), relatively little is known about how these firms operate and prosper under globalisation or network internationally (Törnroos, 2000).
The case of the global freight forwarding industry is one example where SMEs are playing an increasingly important role in networks of business relationships (Doernte, 1999). The freight forwarding industry is made up of thousands of operators around the world that range from small family businesses to multibillion dollar companies. Figure 1 shows the main actors involved in the freight forwarding industry. As the shippers, which provide services to freight forwarders, are becoming more global in their approaches to sourcing and logistics management, freight forwarders are finding that they also need to develop global network connections. Christopher (1992) states that effective management of logistics and supply can become a source of competitive advantage, supporting firms in achieving cost/productivity advantages and “value” advantage. A critical issue in supply network strategy is the allocation of activities within the firm and across network partners (Gadde and Håkansson, 2001), allowing firms to concentrate on their areas of core competence and create value within their internal and external networks. Value creation and its role in business network