Competition in business networks

Most of those who write about marketing or strategy appear to view competition as the overarching logic of business. Commentators have usually associated competition with improved economic efficiency and customer well-being: they have regarded it as “a good thing”, at least in the abstract or when it only affects others. In contrast to the widespread interest of other researchers and the preoccupations of managers with competition, researchers within the IMP tradition have devoted hardly any attention to the issue in over thirty years of research and the term occurs only infrequently in the IMP literature.     

Sense-making and agenda construction in emerging business networks — How to direct radical innovation

This paper focuses on the role of sense-making and development agenda construction in emerging business fields characterized by radical innovation. First, the networked environment of emergent business fields is described. It is shown that both sense-making and agenda construction are key cognitive processes in managing in this environment. Then, a framework describing the dimensions of managerial sense-making and its antecedent factors is suggested and discussed. Finally, the phenomenon of agenda construction and communication and its role in influencing the direction of business field development is examined. Discussion of the theoretical and managerial implications concludes the paper. The paper provides significant new understanding on the roles of sense-making and agenda construction in the emergence of new business fields. It contributes both to network theory of emerging fields and management in radical innovation contexts.     

Crossing East-West boundaries: Knowledge sharing in intercultural business networks

Strategic business nets are becoming increasingly important in the arena of global competition. This article examines the influence of ethnic culture on knowledge sharing in different types of intercultural business nets. Knowledge sharing is essential for the functioning of business networks as it influences the cooperation and outcomes that firms are able to achieve. Our basic assumption is that the nature of the cultures involved and the type of network both influence the knowledge-sharing barriers. This is investigated on the basis of two conceptual frameworks. The first is a framework identifying different types of strategic nets and the requirements they impose for knowledge sharing. Subsequently, a culture-classification scheme based on the individualism-collectivism and the vertical-horizontal dimensions is derived. The strategic net and cultural types are then combined in an intercultural business-net framework, and the opportunities for and barriers to knowledge sharing are analysed using examples representing Asian-European and Asian-North American joint ventures and networks.     

Relating in business networks: Innovation in practice

Few studies have looked at the innovation process in the early stages of new business ventures in the context of business networks. Reporting on eight years of development of a new venture, we examine how the development of initial business relationships in an ever-changing business network affects technological innovation. We conclude that technological innovation is contingent on the development of business relationships that are a critical mechanism permitting a new venture not only to access but also to produce knowledge essential for innovating. For management this implies the need to strike a judicious balance between internal focus and closure to produce novel solutions and external focus and openness to experiment in business relationships.     

The construction of managerial knowledge in business networks: Managers' theories about communication

In this article we regard managers' knowledge as a nuanced construction of reality that produces particular ‘espoused theories’ about the self as a practitioner and the environment in which they practice. Everyday managerial practices take place within the context of these theories. We argue that a subtle analysis of managerial talk can enhance the study of inter-firm relationships by revealing the espoused theories on the basis of which boundary spanners act. To demonstrate the construction of managers' knowledge, we introduce and explore materials collected in interviews with marketing and purchasing managers in several industrial contexts. We restrict our focus to talk about instances of communication to explore in depth how this talk establishes perceived ‘facts’ about inter-firm communicative work. We identify key discursive repertoires that are deployed to establish the range of communicative work, the difficulty in managing the directionality of communication and the complexity of managing in sometimes ambiguous situations — managerial ‘facts’ that are absent in some communication research. At the same time, discursive repertoires are deployed to establish the self as an able practitioner and a capable participant in communication. Our study has implications for boundary spanners and their organizations. We consider how boundary spanners' understandings of communication may be better deployed by the organizations that employ them and also in management education and training.     

How companies strategise deliberately in networks using strategic initiatives

In this paper we contend that there is little idiographic empirical research that considers the issue of deliberate networking action in full-faced network contexts. We address the issue through the use of strategic initiatives as a form of deliberate networking action. IMP research argues the ability of an organisation to manage in a network context that involves the pull of the network and the action of the individual organisation (Håkansson & Ford 2002; Möller & Halinen 1999; Möller & Svahn 2003; Ritter, Wilkinson & Johnston, 2004; Zolkiewski 2007). Yet the paradox logic reminds us that a firm still needs to act, to try and control and influence, to suggest ideas and initiatives, to set limits and to seek opportunities. Strategic initiatives allow for conscious strategising at the same time as ongoing adaptations in activities and resources occur. Based on two complementary case studies we suggest five approaches for deliberate strategising in full-faced network contexts. These are i) strategising based on network pictures in the absence of direct interaction, ii) strategising in the presence of a network audience, iii) strategising among deliberate equals, iv) strategising among imaginative equals, and v) strategising as open and absorptive bystander. The five approaches can be used separately or in combination.     

Rise of strategic nets — New modes of value creation

This paper focuses on the type and management of intentionally created business networks called nets. Nets are extensively being used to achieve a variety of benefits over those of a single firm or market transaction. We propose that the effective management of different types of business net is dependent on their underlying value creation logic. Based on this notion a value creation framework of three generic net types - ‘current business nets’, ‘business renewal nets’, and ‘emerging new business nets’ - is suggested. We argue that they pose widely different conditions and requirements for net management. The management mechanisms of these basic net types are then identified and discussed. We contend that the proposed contingency framework captures the complexity and variety of the expanding strategic business nets in a more valid way than the extant classifications of network organizations. The paper contributes to the emerging theory of network management.     

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.     

How to influence the birth of new business fields — Network perspective

This article explores the management challenges of emerging new business fields by using a network perspective. We are interested in the extent to which individual firms, by mobilizing cooperative networks of actors, can influence the emergence of radically new business fields. A framework describing the environment and the phases of emergence is proposed. Then the activities within each phase are discussed. Finally, we identify and examine the company-level capabilities involved in the management of these core activities. The study contributes to the management of new business fields.     

Formation and evolution of buyer-supplier relationships: Conceiving dynamism in actor composition of business networks

This study investigates the tenability of the position that business networks are relatively stable, based on long-lasting inter-firm relationships with limited substitutions of incumbent actors. This is done via a longitudinal analysis on the actor composition evolution with regard to the supplier networks around two car assembly plants. Based on the overall empirical findings, the study concludes that the phenomenon of supplier substitution may be a more widespread reality. Consequently, the article finishes with a series of business implications and recommendations on how to investigate and conceive this matter more thoroughly.     

Actor network pictures and networking activities in business networks: An experimental study

In recent years, there has been increasing interest among business-to-business marketing scholars in the processes of managerial cognition. In particular, actors' network pictures, defined as the cognitive representations of managers' business surroundings have attracted much attention. However, there has so far been no empirical research on the impact that network pictures have on managerial behavior. The purpose of this paper is therefore to understand if and how specific pertinent network picture characteristics — namely power, dynamics, broadness, and indirectness — are associated with different behavioral choices, i.e. networking strategies. Based on an experiment with 445 Executive MBA students, all international managers across different industries, we find that managers' choices when managing business relationships, their strategic actions, are affected by the way they perceive their surrounding business network. However, amongst the different theoretical models of networking activities tested, only the power dimension showed significant associations with all four network picture characteristics. This study represents the first to empirically study the connection between cognition and behavior in business-to-business markets, as well as one of the few to apply an experimental design to study a business-to-business marketing related phenomenon. Also, it paves the way for future understanding of the association between network picture characteristics and networking strategies in interaction between actors.     

Institutions and business networks: A comparative analysis of the Chinese, Russian, and West European markets

The paper analyses business networks originating from three markets: Chinese, Russian, and West European. So far, little attention has been given to the fact that business networks in particular markets may be dissimilar because of differences among institutions. The paper advances a model where institutions are assumed to influence five major characteristics of business; (1) the processual aspects of the network, (2) the structural aspects of the network, (3) the function of firms and relationships in the network, (4) the meaning of strategy and planning, and (5) social relationships in the context of inter-firm relationships. The analysis builds on three types of substances of institutions — cognitive, normative, and regulative, which in turn are specified according to different aspects. The cognitive substance of business networks is explored through the aspects of self, time, and causality. The normative substance is explored through the aspects of achieved versus ascribed status, inner versus outer direction, universalism versus particularism, and trust. The regulative substance is specified as an authority system and a sanction system. The analysis demonstrates that, as institutions differ in these three markets, the business among them also differs in terms of the five characteristics, and this variation calls for different strategies for firms operating in these markets.     

Innovation in business networks: The role of leveraging resources

This study investigates how companies innovate in their business networks. We examine the role of leveraging resources in the context of retail brand paints within the do-it-yourself (DIY) paint industry, where the role of innovation is pertinent to achieve differentiation and create value. The study investigates innovation as a process of leveraging resources within business relationships. Research findings demonstrate that manufacturers and retailers jointly leverage resources to develop and launch innovative retail brands. Companies need to carefully address these resource-leveraging processes and assess their options in developing innovations that enable sustainable growth.     

Business service networks and their process of emergence: The case of the Health Cluster Portugal

Business services have been receiving increasing attention from academics, practitioners and policy-makers. Despite the growing interest, this field of research suffers from several limitations: it draws mostly on services marketing theory, and it is grounded mostly in monadic and dyadic studies. This paper contributes to the advance of business services research by addressing these limitations with regard to a specific service-related issue. We carry out an interdisciplinary study by integrating among others an industrial network approach (INA) into the services area, and we thus develop the research at a network level by adopting a services network perspective; furthermore, the study is carried out in a business-to-business context by looking into a health cluster: the Health Cluster Portugal. The article addresses one particular aspect of business services networks: their emergence. We propose a conceptual framework that draws on process-based research and integrates theories from other bodies of research, allowing a rich understanding of how a business service network is created. Our findings point to discontinuities along the emergence of such networks, showing that there is an iterative process underlying their formation, with different theories playing a predominant explanatory role at different stages. This paper contributes to the wider body of literature on services research by promoting the integration of the INA and other process-related approaches in the area of business services networks, and also provides practitioners and policy-makers with a structured framework to understand how an intentional ‘bottom–up’ business service network may be created or orchestrated.     

Broadband access in the EU: An assessment of future economic benefits

This paper evaluates the net economic benefits that would derive from the implementation of the broadband infrastructure deployment targets by 2020 as entailed by the Digital Agenda for Europe Initiative set forth by the European Commission. As a first step, we estimate the returns from broadband infrastructure for the period 2005–2011, differentiating the impact of broadband by levels of adoption and speed while accounting for reverse causality and extensive heterogeneity. In the second step, the cost of broadband roll-out is assessed under different assumptions of technical performance and contrasted with the forecasted benefits that derive from increased broadband coverage. We find that in the base case scenario the overall future benefits outweigh the investment costs for the European Union as a whole for the highest performance technologies. This holds also for the majority of member states individually. We further extrapolate the returns by country under different scenarios of implementation. In most cases the benefits are substantially well above the costs. Private sector is reluctant to invest, as investors in broadband infrastructure only can partially appropriate benefits. This would suggest a rationale for the public sector to subsidize build-out of high speed broadband infrastructure.     

Networks of mind and networks of organizations: The map metaphor in business network research

This paper examines the definitions and uses of the network picture metaphor in industrial marketing research. Conceptually, the paper extends our understanding of networks and of representations of networks among researchers and practitioners as pictures or maps. A threefold interpretation is proposed of network pictures as representationalist, mentalist and situated. The representationalist use has dominated business-to-business network research while the mentalist use is prominent in strategic management and has recently made an entrance into industrial marketing research. The representationalist version of pictures, despite its apparent innocence, can either imply or leave unexamined the mentalist version, but mentalism stands in contradiction to much network thinking. This paper seeks to resolve the emerging contradiction of representationalist and mentalist versions of network pictures by advocating a situated version. Seeing network pictures as situated in use is helpful in grasping cognitions and actions in a manner consistent with networks. The paper concludes by developing the situated version of network pictures as ‘actants’ and sketches the benefits and implications for business researchers and practitioners.     

Controlling and combining resources in networks — from Uppsala to Stanford, and back again: The case of a biotech innovation

This paper explores how resources are controlled and combined in a biotech network that spans from Uppsala, Sweden, to Stanford, USA. A case study is reported that describes and analyses how the original discovery, developed at the Department of Genetics and Pathology at Uppsala University, Sweden, was combined with other innovations at Stanford University, California, and under the influence and control of several different actors, including venture capitalists, were exploited within a newly founded company, ParAllele.The paper analyzes the resources that are created, combined and controlled in the network around these scientific discoveries and the company hosting them. This analysis shows how actors are using and are exposed to different control mechanisms, such as action, results and personnel controls, in the innovation process. Our discussion emphasizes how the involved actors apply various types of controls on resources in order to reach their objectives. Forms of control that both entail mobilizing other actors and preventing actions in the emerging network are of importance. We conclude the paper by pointing out the features of control in innovation processes as well as obstacles to control in a business network setting.     

Managing the trade-off between relationships and value networks. Towards a value-based approach of customer relationship management in business-to-business markets

The management of buyer-seller relationships was an early antecedent to the development of customer relationship management (CRM) concepts. Currently, CRM concepts are being challenged by the rise of value networks. Value networks can and, often, do interfere with customer relationships and thereby call for a broader range of concepts to analyze and understand relationship management and the influence of value networks on relationships. This introductory article describes the nature of the problem between relationships and value networks, reviews the current state of research, and describes the contributions of the articles presented in this special issue on CRM in business-to-business markets.     

A study on the deployment of high-speed broadband networks in NUTS3 regions within the framework of digital agenda for Europe

This paper investigates the high-speed broadband situation in the EU and its prospects. It uses a deployment model to estimate the investment required to meet the Digital Agenda for Europe (DAE) broadband targets set by the European Commission in its Europe 2020 strategy at different stages: as of 2016, after expected operators’ deployment, after public subsidies and leveraged investment, and as expected in 2020. The model uses data at the NUTS3 level, which is the most granular level that has data available on the status of broadband deployment, to arrive at a coherent and comparable framework. From the different perspectives on the investment to meet DAE targets, the paper concludes on the need for an appropriate combination of incumbent and alternative operators investments, public subsidies and leveraged investments, and new investments, both public and private and non-existing as of 2016, examining their feasibility and the impact of different regulatory, technical, and policy strategies.