As part of a research project on cooperation between Nordic software development subcontractors and their foreign customers, the dynamics of intercultural marketing competence are being examined. This paper builds a conceptual bridge by developing a definition of a software subcontracting firm's intercultural marketing competence on the basis of (a) socio-psychological and human resource management definitions of intercultural competence at the level of individuals and (b) definitions of organizational competence from the resource-based perspective. Furthermore a model of the dynamics of this competence is presented. In connection with the model, key economic aspects of the competence from the viewpoints of both the subcontractor and its customer firm - including strategic importance, heterogeneity, imperfect mobility, ex ante limits to competition, dynamic transaction costs, time compression diseconomies, asset specificity, assets mass efficiencies, and asset erosion - are described. It is envisioned that the presented framework will be helpful to software developing subcontractors from nations that do not dominate in international software business.
International Business and Economy Conference 2002, Emerging Issues in the New Global Economy, 2002