specialist capabilities and industry specific as well as geographic market specific knowledge, firms have opportunities to exchange information on products, markets, development opportunities and competition. This was highlighted by one interviewee from a small firm, who commented that after joining the HTFN network his firm gained access to developing “as many markets as members are available”. The importance of trust between network members was highlighted by the fact that each freight forwarder agent has to place responsibility for entrusting the welfare of customers and consignments to another network agent who will attend the freight at the port of destination. In the freight forwarding business success, therefore, depends on the careful handling of every shipment and customer by another member of the network. Trust in the capabilities and commitment of the other party acts as the glue that binds the relationships between the freight forwarding firms. Thus, the exchange of information between the firms and the sense of trust that appeared to exist in their relationships were identified as relevant factors in developing business connections for internationalisation and the long-term growth of the firms.
The relationships of network members (or partners)
The perceptions of the members of the HTFN toward their network associates and the service that they were receiving from them depended heavily on the performance of the other agents involved. The answers received suggested that the majority of the companies interviewed were satisfied with the level of service offered by their partners within the network. Blankenburg (1995) has suggested that within business networks the emergence of mutual commitment in relationships over time leads to the development of interdependent activities, increasing the level of mutual productivity. The findings of this study suggest that the HTFN companies developed commitment to their relationships founded on their strong conviction and mutual commitment to excellent service when dealing with the handling of their partners’ freight. The personal relationships developed through informal daily contacts, and through formal network meetings held twice each year, may help the firms to generate ties that contribute to the creation of a sense of belonging and commitment to the network, adding value to the activities of each firm individually and across the network.
Customer relationships
An important benefit of network membership identified by all companies was that the network allows them to offer an “almost worldwide” coverage of international forwarding services, a wider range than if they were operating alone. In this way the companies felt that membership of the network contributed to individual as much as group or network competitive advantage. By offering customers forwarding services in every country where there is a HTFN agent, virtually the same coverage offered by a multinational company may be provided. Long-term gains in terms of flexibility and cost savings in serving customers were obtained. As each agent is a “local player” in his/her domestic market, local knowledge of customers may filter across the network. This tends to provide a better level of customer service, saving time when dealing with customs requirements and documentation. An additional advantage for the small firms of the HTFN was that by working in a network of competitors the value of collaboration was believed to be more substantial when compared to vertical forms of collaboration with suppliers or customers. Respondents commented that this was apparent because all the network members know and are carrying out the same economic activity and, therefore, the development of shared knowledge and understanding of requirements in performing network activities was easier to achieve. In working towards shared goals and aspirations in serving international customers, network goals appeared to supersede the individual competitive instincts of firms.
Competition
All of the ten firms interviewed confirmed that they felt their competitive position had been strengthened as a result of being part of the network. This improved competitive position was felt to have positively influenced their attitudes to competing against both other SMEs and large multinational firms. The international scale of the network had influenced the firms in feeling more positive about their international competitive position and through their membership of the HTFN network they felt that they had improved their image in the eyes of customers in being able to offer a global service concept through “global representation”. Mergers between different firms in the network have been discussed. However, one respondent demonstrated the feeling of all the SMEs by stating that international mergers inevitably resulted in internal firm changes relating to management, organisational culture and strategic predisposition. It seems that the members of the HTFN prefer to keep their status of regionally focussed independent companies,