ABSTRACT
The following discussion presents a real-world example that illustrates the signifi - cance of relationship networks in international business. The fi rm is Powertron GmbH, located in Teltow, a small Brandenburg village in the neighbourhood of Berlin, Germany. Powertron has fewer than fi fty employees and reaches a yearly turnover of up to 3 million euros. Thus the fi rm fi ts the category of a small-and medium-sized enterprise (SME) perfectly as defi ned by the European Union (European Commission 2006 ). Manufacturing at the current fi rm facilities started in 1991 when Powertron manufactured specifi c electronic hardware components. Due to erroneous market forecasting by the previous management and a concentration on only two customers, the company faced bankruptcy at the end of the 1990s. In 1998, a new investor took over the company and launched a turnaround strategy. The new entrepreneur, Mr Karstensen, had the vision to develop Powertron in a way that enabled the fi rm to become a technologically driven international world-class manufacturer of foil resistors.
