Strategic orientations towards countertrade opportunities in emerging markets

Abstract

Recession and competitive pressure in the global arena, allied to the emergence of large, long‐term potential markets, have intensified both the incentives and the opportunities for countertrade. Examines findings on the generic countertrade approaches of major British companies and analyses attitudes concerning proactivity towards countertrade. Unexpectedly, finds that proactivity varies inversely with the value of individual one‐off contracts and directly with the degree of repeat business. Explores the merits of a proactive approach to countertrade, contingent on business environment dynamics and reflecting organizational competences.

Barter trading: An empirical investigation of management practices

“…This is because as the barter customers try to offload the products, they will be targeting the same customers that would have otherwise bought the products from the original company. Egan and Shipley (1996) noted that barter trade compared to monetary transactions is associated with high risk. One of the risks is the threat of mismanagement and fraud.…”