Decoding network dynamics

Business networks are fluid, yet decoding network dynamics provides a number of methodological challenges. This research illustrates how, by using a technology-bundled business net, the temporal fluidity of the network boundary and the associated processes and events that affect this can be understood. Abductive logic is applied in combination with the concepts of network positions and roles to analyze these processes and events. Empirical observations from a case study embedded in the optical recording media industry spanning the period 2001–2008 are used to illustrate the network dynamics resulting from technological change that drive the evolution of the focal net. The case illustrates that in order to decode network dynamics, a number of aspects need to be considered: how the network boundary is delimited, process, time, events and the conceptual lenses that can provide a basis for analyzing change.     

Dimensions of space in business network research

Interactive processes constitute a core notion in business exchange, leading to the concepts of relationships and networks. The constitution of process, comprising unfolding events, activities, and connected structures, relies on difference in space and time. While research has been devoted to time, the concept of space has thus far remained largely unexplored within business network research.This conceptual paper focuses on spatial dimensions for conducting research according to the IMP business network approach. Business actors create connected relationships and networks that exist and change as continuous emerging spatial structures and as mental maps in the managerial mindset. These relational network processes and structures are located, distributed and experienced in and across space. Drawing on economic geography and conceptual frameworks from the business network approach, we propose new dimensions and conceptualizations of space for the study of these networks. The paper delivers proposals to extend our current understanding of business networks as emerging and changing spatio-temporal entities with implications for theory development, research and practice.     

Network process analysis: An event-based approach to study business network dynamics

To develop business, managers need to understand the dynamic nature of the business networks in which their company operates. Qualitative process research offers a promising methodology to deliver that understanding but does not yet provide elaborate analysis methods applicable to business network research. We therefore introduce an event based analysis strategy developed to study processes in business networks. Employing a longitudinal case on a paper trader's internationalization process in a network context as an experimental arena, we propose three tools for process analysis. First, a research steering wheel that combines both retrospective and real time event analysis; second, an analytical scheme comprising influencing factors, critical events and consequent change; and third, an event trajectory that unfolds process patterns. The proposed strategy offers a viable alternative to social network analysis, network pictures and narrative analysis with which to study network change and dynamics. Elaborating events from a moderate constructivist perspective, it enables the researcher to trace and understand processes beyond mere structural change, and to capture their evolution in a multilayered network context. We evaluate the strengths and weaknesses of the methodology and discuss its relevance for research and practice.     

Managing strategic system-building networks in emerging business fields: A case study of the Dutch smart grid sector

Companies that wish to launch innovative sustainability technologies can collaborate in strategic networks of actors from industry, government and research institutes to pro-actively build a business ecosystem around their new technology. This is called collective system building. In this paper, we examine how to effectively manage networks for collective system building. Based on a review of the literature, we identify the key factors of effective network management and we propose a conceptual framework for network management at the network level. Subsequently, we conduct a multiple-case study in the Dutch smart grid sector to examine how these key factors are implemented by system-building networks. We find differences with the existing network management literature regarding network composition, network management structure, governance modes, decision-making processes, project management, the free-rider problem and trust-building mechanisms. Our study contributes to a better understanding of effective management of system-building networks, which in turn can lead to greater success in establishing new business fields. We contribute to the literature on strategic business networks, specifically on emerging business networks building new business fields.     

Studying processes in and around networks

The industrial marketing literature on business networks has drawn attention to the importance and yet the complexities of managing in a context of fluid and dynamic inter-organizational relationships. This context also poses significant challenges to researchers who wish to better understand the evolution of networks and the processes occurring in and around them in order to generate valuable theoretical insight and actionable knowledge for practitioners. After reviewing the nature of process research, this paper considers the key methodological choices and tradeoffs faced by process researchers interested in studying network dynamics. These choices and tradeoffs are illustrated by drawing on a series of exemplary process studies of networks derived from the entrepreneurship, strategic management, organization theory and industrial marketing literatures. The paper concludes by proposing that future studies might benefit from focusing on key network transformations and from mobilizing programmatic investments.     

Network pictures as a research device: Developing a tool to capture actors' perceptions in organizational networks

In business networks, strategic actions are believed to be guided by actors' subjective views or perceptions of their surroundings. Researchers thus consider these perceptions as important for understanding network related phenomena. Despite their recognized importance, there has not been much research aimed at developing a way to systematically capture these perceptions. The purpose of this paper is to show how actors' subjective views of the business network can be analyzed using the research device of network pictures. This is accomplished by developing an empirically derived dimensional model for capturing different aspects of an actor's subjective view. We exemplify how the developed device can be applied, and illustrate how there seem to be ‘types’ of ways of perceiving the business network. This paper therefore represents a methodological contribution through the development of a tool that may change researchers' practices in understanding business networks.     

International research teams as analysts of industrial business networks

This paper analyzes case studies in the context of industrial business networks, and in particular from the IMP (Industrial Marketing and Purchasing Group) perspective. Two features have been prominent in this research tradition: collaboration in international research teams and interest in business between international customers and their suppliers. Still, researchers seldom discuss the challenges with the international aspects of the research team (as the subject of study) or of the business relations (as the object of study). This paper shows the complications of analyzing international business relations, namely, relations that cross national boundaries, and investigates how an international research team can tackle the challenges of international business network studies. The key contributions are, firstly, to indicate the lack of attention on the methodological requirements and opportunities that the international features create for the analysis of business networks and, secondly, to investigate how collaboration in an international research team may advance the analysis of both international industrial marketing relations and broader business networks.     

Critical events in time and space when cooperation turns into competition in business relationships

This study aims to improve our understanding of the processes of critical events in time and space that lead from cooperation to competition in dyadic business relationships. Within the business network approach there has recently been a call for research into both time and competition, and research combining both is novel. The study identifies and analyzes critical events in time, their connections with each other and the inner and outer space related to each event. The empirical study is based on four qualitative cases. The findings contribute to existing research by presenting several new perspectives on events and spaces, which improves our understanding of time and process in business networks. Business relationships may evolve from cooperation to competition through chronological events involving information sharing, sales-related and opportunistic activities. In space, these events mostly relate to the focal business relationships, the individual companies and third parties, such as customers.     

Network position and identity: A language-based perspective on strategizing

This article explores processes of strategizing within business networks by showing how managers employ sensemaking to cope with network paradoxes. It takes the linguistic turn to analyze how participants discursively construct their organizations' identities and positions within a ‘designed’ network context. In doing so, the paper attempts to answer the research question posed so provocatively over a decade ago by Håkansson and Ford (2002): by exploring how companies interact in business networks. Our contribution is to show how firms interact by taking a language-based perspective on strategy to help understand the links between network, organizational and micro-levels of social construction. An in-depth discussion of a case study is presented, with particular emphasis on the identity-constructing processes affecting (and affected by) the positioning and strategizing of various network actors. We conclude by reflecting on the theoretical and practical contributions of our analysis, the latter focusing on tensions in Indigenous business development.     

Sensemaking in business networks: Introducing dottograms to analyse network changes

The issue of how different actors in a network understand changes to their industry remains an under-researched but crucially important area. According to the industrial network approach, companies interact according to their perceptions of the relevant network environment and their subjective sensemaking of the network logic and exchange mechanisms relating to the activities, resources, and actor bonds. Using a case study of the Norwegian/Japanese seafood distribution system, we propose a methodology that allows us to better understand these perceptions. We develop an analytical method based on ‘dottograms’ which facilitates a more detailed understanding of change within networks. In particular, we show how the dimensions of time (past, present and future changes) and space (change at actor, dyad or network level) can be better understood, and also how the method facilitates our understanding by ascribing reasons for the change. As such, we provide a methodological contribution to research on business networks and change.     

Making room to manoeuvre: How firms increase their influence with others in business networks

Earlier research has highlighted the dynamic nature of influencing in business networks, and shown that firms may vary considerably in their influence, defined as their potential to achieve changes in the activities, resources, or goals of other firms in the business network. There is, however, limited understanding of the specific means of influencing which may allow firms, over time, to increase their influence with other firms in the same network. Drawing on a longitudinal case study, we describe how a firm, through influencing others by the dynamic enactment of network management activities, gradually increased its influence with other firms in the business network. Based on our observations, we offer a processual model for influencing in business networks that links specific network management activities to conditions under which they are used.     

Change processes in open innovation networks – Exploring living labs

Examining change in business networks can illuminate how time, temporality and process unfold and engage different stakeholders in open innovation. Living labs are increasingly popular open innovation networks that provide a fruitful area in which to study change processes and their influencing factors in network dynamics. We adopt a longitudinal process perspective to analyze eight living labs focused on urban development in a Northern European city. Our analysis reveals six pertinent processes: (i) expansion, (ii) reinforcement, (iii) focusing, (iv) unification, (v) termination, and (vi) recurrence. These processes reflect change in networks characterized by diverse actors, the coexistence of individual and shared motives, a high degree of openness, and user involvement. The identified change processes are a result of living labs disclosing their needs, data, and operations to their stakeholders. We propose a theoretical concept, which we describe as “network boosters”, to illustrate the factors that foster change processes. Scholars and practitioners of innovation management can learn from these findings that understanding change in open innovation networks may help to depict and predict short- and long-term relationships, and it may assist them in managing innovation in open environments.     

Sense-making and management in business networks — some observations, considerations, and a research agenda

Business networks are complex webs of interdependent exchange relationships within which companies and individual managers operate. They consist of manifold actors, complex interactions, as well as organizational structures and resource transformation processes. Business managers cannot just capitulate vis-à-vis this complexity. Making sense of complex business networks helps managers to understand their own position, as well as their available options for change. Similarly, research in the area of sense-making and management in business networks may help us understand how managers cope with the contextual complexity in business networks, and how managers construct the forms in which this complexity appears. This paper identifies six major research themes that need to be taken up in the future with regard to sense-making and management in business networks, and discusses some methodological issues to advance our knowledge in this area.     

A bibliometric analysis of extended key account management literature

Key account management (KAM) has played an important role in business, and this study reviews key account management research using bibliometric techniques. This review includes 373 KAM relevant articles published in 68 journals between 1979 and 2016. In our analysis, we extend the discussion on KAM literature by highlighting areas such as the roles of technology and conflict as well as relationship planning and implementation. We discuss the value of co-creation, inter-organizational design elements, and dyad-level performance measures. We examine five distinctive time-periods and find that KAM relevant literature has progressed 1) from selling and relationship-building approaches to key network management, 2) from network innovation to governance, 3) from network-level performance to co-creation of business solutions and values, 4) from product and service performance to incorporating sustainability. Finally, we present the fifth transition based on a network-view of KAM and identify future research aimed at integrating areas such as network-based orientation, applications of organizational theories, organizational innovativeness, network competence for optimal structure and processes, network-based KAM teams, value-sharing mechanisms, co-created value measurement, and value sustenance within networks. We identify areas of future research and expect the adoption and application of key account management concepts to grow across multiple disciplinary fields.     

Practice theory and the study of interaction in business relationships: Some methodological implications

Research on customer–supplier relationships in business markets has evidenced the centrality of interaction processes. However, while several studies examine interaction processes and their consequences in relation to the resource and activity layers of business relationships, the actor layer has not attracted the same attention. This raises the question: how adequate are our methodological approaches for investigating interaction processes in business networks? In this paper, we examine how practice-based approaches, with their preference for ethnography and techniques such as multi-site observations and analytical interviewing and treating actors as emergent entities, can help orient the research on business interaction. We argue that some of the themes emerging in practice-based approaches, applied to studies of interaction in business networks, could yield a better understanding of the dynamics of organizing across organizational boundaries. We conclude that research on interaction in business relationships would benefit from (1) zooming in and zooming out of multiple sites of interaction to better understand interaction processes and the role of controversies and interdependences among the different interacting roles; (2) including fluid multiple roles in business relationships that treat actors as emergent entities and transcend the ‘fixed’ conceptualization of two actor levels – individual and organizational; and (3) paying major attention to the reproduction of interaction practices and the role of materiality that permit relationships to be temporarily stabilized.     

Relational paths in business network dynamics: Evidence from the fashion industry

This paper addresses the topic of business network dynamics. Starting with a review of the IMP literature, it aims to shed light on potential relational paths by which a firm may reconfigure its business network. To this end, two main emerging paths are described: integration and substitution. Methodologically, the paper presents and discusses the data collected during a longitudinal case analysis of four Italian textile producers. The main implications for business networks stemming from these emerging relational paths are described. In particular, the main findings from the cases analyzed suggest that business network dynamics should be interpreted in terms of the processes of both business network change and consolidation.     

Processes of business model evolution through the mechanism of anticipation and realisation of value

This study applies a process approach to analyse the evolution of a business model in a network environment. The business model provides a context in which to observe change processes arising through interactions amongst network actors. Based on a systematic search of the literature, the study proposes six processes by which business models evolve, motivated by the causal mechanism of value anticipation/realisation. We argue that actors' anticipations and realisations of value, arising continuously through repeated interactions, motivate changes in their interactions, which cause their interlinked business models to evolve over time. We explain the connection between the evolving business model and value in a way that accommodates interactive and time dimensions of value. The process explanation is demonstrated with empirical evidence from the longitudinal case history of an IT company. What appear to be discontinuous phases in the history of the focal firm's business model are shown to be causally connected by continuous event sequences. The study contributes to process methods by providing a worked example of a strong process explanation applied to a network business phenomenon.     

Constructing identities in Indian networks: Discourses of marketing management in inter-organizational relationships

This paper explores business-to-business (B2B) marketing values and knowledge systems in India and their impact on identity construction in industrial networks. Our study moves methodological approaches into more interpretive territory by acknowledging the processes of social construction in networks as articulated by the IMP Group. We bring an interdisciplinary perspective to B2B marketing studies by recognizing cultural influences on managers' constructions of Indian modernity and explore what these linguistic moves may mean for the management of buyer–seller relationships. We highlight the dexterity with which individual actors discursively position themselves, their (and other) firms and countries by drawing upon a range of interpretive repertoires in their accounts of relationship management. Our chief contribution is to conceptually synthesize some of the discursive forces at work in identity processes within Indian business networks and to empirically illustrate the inherent tensions within managers' talk as they construct individual, organizational and national identities.