It’s a Relationship Business! An Embedded Network’s Internationalization as a Process of Sense-Giving and Sensemaking: The Case of Japan, Shipping Industry

Abstract This is an exploratory study, it seeks to understand internationalization of a business group as a process of sense-making on the individual level. The focus of the enquiry is a Japanese shipping group, bulk cargo segment and seeks to answer the question how a network’s administrative heritage enables and/or inhibits the performance of relationship management processes in the context of multiple embeddedness and internationalization. The study finds, that the industry at large and the Japanese Business Group (JBG) as institutions act as enablers for the effective management of existing relationships worldwide by delegating action to the field through standardized processes and shared understandings. As for identifying and developing new relational opportunities, JBG as an institution inhibits coordination and sensemaking capabilities by its strict vertical power hierarchy and a concentration of authority and resources in headquarters.