Drivers and performance implications of international key account management capability

• Key account management is important in maintaining successful customer–supplier relationships.
• Market scanning and trust are critical to develop international key account management capabilities.
• Cultural distance and supplier IT advancement moderate the impact of market scanning.

Key account management plays a pivotal role for managers and practitioners in the maintenance of successful customer–supplier relationships. Yet, little is known conceptually or empirically about how suppliers can move beyond market scanning and develop international key account management capabilities in international customer–supplier relationships.Drawing from the dynamic capability literature, we develop and test a model of antecedents and performance implications of suppliers’ international key account management capabilities. In addition, the moderating effects of cultural distance and supplier information technology advancement are examined.An analysis of 246 Taiwanese electronics suppliers reveals that market scanning and trust are recognized as critical to the development of suppliers’ international key account management capabilities. Moreover, these key account management capabilities can facilitate suppliers’ market performance. Importantly, cultural distance and suppliers’ IT advancement moderate the impact of market scanning on the development of key account management in international exchange relationships.