Dislocated versus local Business Service Expertise and Knowledge and the Acquisiton of External Management Consultancy Expertise by Small and Medium-Sized Enterprises in Norway

This paper explores the logic driving the evolving geography of business service provider/suppler relationships in Norway. It explores the ways in which Norwegian SMEs access external knowledge provided by management consultants through three case studies that have been developed using a matched pairs methodology (clients and consultants). The paper highlights the relationships between geography and client sourcing of external knowledge and expertise in three kinds of client/consultant relationship: local (clustered) knowledge; dislocated or distantiated knowledge, and; knowledge that is relatively distance insensitive. The concept of dislocated expertise or knowledge adds an additional dimension to literatures that highlight the importance of localised knowledge and strategies to reduce transaction costs, as well as providing insights into the complex relationships that occur between suppliers and consumers of knowledge and expertise. The importance of local business cultures and patriotic purchasing are also identified as playing important roles in influencing the behaviour of Norwegian firms. (c) 2004 Elsevier Ltd. All rights reserved.