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Markets as networks: implications for strategy-making
Authors:Jan Johanson  Jan-Erik Vahlne
Affiliation:(1) Department of Business Studies, Uppsala University, PO Box 513, Uppsala, SE75120, Sweden;(2) Gothenburg University, Box 610, Gothenburg, SE-40530, Sweden
Abstract:
Based on empirical studies of firm exchange activities in business markets, this paper outlines a business network view of the firm-market relationship, which differs fundamentally from the view assumed by neo-classical economic theory. We define business networks as sets of connected business relationships. Thus business relationships and connections between relationships are the critical elements in the business network view. It is assumed, as suggested by the Uppsala internationalization process model, that an interplay between knowledge and commitment development is the mechanism that drives the relationship and network development process. Against this background the paper discusses how strategic change is analyzed in literature on alliances and networks. In conclusion the paper presents a set of propositions about strategy-making in business network settings.
Keywords:
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