JARDINE, MATHESON & COMPANY - THE ROLE OF THE EXTERNAL ORGANIZATION IN RISK REDUCTION AND LEARNING.

Strategic management in Jardine, Matheson derived from the special business, social and political environment into which the firm entered and the firm's concentration on building a pattern of relationships within and outside the business — an external organization in the Marshallian sense. This external organization helped the firm to foster the flow of information, the knowledge with which to interpret it, the ability to influence others and the reputation to attract and retain trading partners. Relationships and network building are embedded in the social and economic relations of ASEAN firms like Jardine, Matheson, where culture, cooperation and trust are essential to business operations under uncertainty. In fact, it is the quality and distinctiveness of these intra-firm and inter-firm contracts and relationships that create competitive advantage for the firm within its market, according to a resource based interpretation of the growth of firms. [ABSTRACT FROM AUTHOR]