Purpose The purpose of this paper is to indicate how conflicts in foreign business relationships are handled by small firms from a relational point of view and how these conflicts can be used by small firms in a positive way. Design/methodology/approach The paper uses qualitative study and presents the results of in-depth interviews conducted with six small, Poland-based firms. Findings The paper indicates the nature of conflicts in foreign business relationships from the perspective of small firms, including the sources of conflict and its outcomes. The main sources of conflict indicated include service or product quality, financial aspects of cooperation and cultural differences. The study exposes the existence of both negative (e.g. financial consequences) and positive (e.g. gaining new experience) outcomes of conflicts. It shows that positive conflict handling often constitutes a significant challenge for small firms and that the authors cannot really speak of one optimal method of conflict handling. Regardless of the method adopted, the costs involved should be taken into detailed consideration. Practical implications The paper points to actions that could be taken by small firms to handle conflicts in a way that will produce positive outcomes. Originality/value Managing international relationships is a more challenging task compared with domestic ones, especially for smaller firms. The paper exposes the impact of two categories of conflict (called day-to-day problems and severe conflicts) in a foreign relationship on small firms and considers different methods of handling the conflict situations.

Objective: The objective of the article is to fill a research gap regarding the impact of psychic distance on the initiation of relationships by managers from Poland-based firms and to analyze the psychic distance’s influence on firm performance. Research methodology: The article is based on quantitative research conducted among managers from 201 Poland-based companies operating in foreign markets. The study used a structured questionnaire consisting mainly of closed questions. The dataset contained companies representing all sizes, industries, and ownership status from all over Poland. Findings: Two types of companies were identified following managers’ (un)willingness to initiate relationships with actors located in psychically distant markets. The study conclusions reveal that psychic distance matters for Polish managers and that business activities conducted in psychically distant markets are often perceived as more complex than in close markets. These activities involve additional risk, but they bring companies better performance. Limitations: The limitation of the study is that the measurements are based on the subjective perceptions of psychic distance. The research was conducted in Poland only. Originality: The article is a pioneer work on the psychic distance paradox among Polish managers from a diversified group of companies (from small to multinational). The article seeks to identify to what extent Polish managers perceive psychic distance as an important factor in the decision-making process concerning the initiation of relationships with foreign partners.

The objective of the article is to identify challenges and success factors related to the imitation of the digital platform business model in other industries. Research Design & Methods:We based our research on a single case study of an extra-industry imitation performed by a digital platform operating in Poland that connects confectionery shops and final customers. The case study was based on direct interviews conducted with the co-owners of the platform. Findings:The results indicated that successful extra-industry imitation faced certain challenges, including the different requirements of the new target industry and the related know-how, and attracting cooperating companies and customers. The success of an extra-industry imitation was determined by specific success factors linked mainly to prior experience regarding the digital platform business model, business relationships with technology/IT suppliers and companies from the new target industry, and personal competencies. Implications & Recommendations: Formal and informal business relationships and cooperation are crucial for extra-industry digital platform business model imitation. Moreover, specific personal relational competencies, including willingness to learn and take risks, allow managers to respond successfully to market opportunities and imitate digital platform business models in new industries. Contribution & Value Added:The main contribution of the article lies in assessing the challenges managers face during extra-industry business model imitation. In our model, we proposed a novel set of factors that impacts the successful implementation of the imitation business model process in a new industry. Article type:research article

The aim of this paper is to indicate how the relational and digital competencies of individuals impact value creation processes during a cooperation between companies in a digitized environment. The paper applies the case study method and analyzes a digitized small company operating in Poland and its cooperators (confectionery shops, end commercial businesses, and individual customers). The study contributes to the literature on individual and managerial competencies by addressing both the relational and digital competencies of individuals needed for value creation. It proposes a novel approach to the conceptualization of individuals’ relational and digital competencies needed for value creation in a digitized environment by companies from both digital and traditional industries. It also presents managerial implications and identifies the individual relational and digital competencies of Polish managers that are needed to create value in a dynamic, digitized environment.

The objective of the article is to discuss the impact of conflicts in foreign business relationships on the performance of SMEs. Two possible ways in which conflicts influence the company's performance are considered: direct (conflicts → company's performance) and indirect (conflicts → business rela.onships → company's performance). Research Design & Methods: The article uses the case study method and presents the results of a study of 13 SMEs operating in international markets. Findings: The article proposes a model of the positive impact of conflicts in foreign business relationships on SME performance. A model links relational and operational sources of conflicts with their direct and indirect (through relationships) impact on SME performance and positive and negative outcomes. Implications & Recommendations: The article provides information how to transform conflicts in foreign business relationships into positive outcomes. A crucial role in this respect is played by moderators: trust and informal relationship development, cultural awareness and formal action development. Contribution & Value Added: The originality of the study is that it identifies the main operational and relational sources of conflict situations that impact (directly and indirectly) SMEs performance in their international activities. The identified 4 moderators, by positively impacting SMEs foreign relationship in conflict situations, help these companies to obtain positive conflict outcomes.