Conceptualizing business models in industrial networks

This paper is concerned with business model conceptualizations and outlines a framework for their analysis in industrial networks. A literature review suggests that there is a broad range of current conceptualizations of business models. Analyzing them as they pertain to interaction, business relationships, and industrial networks reveals two main explanations for their differences: first, they clearly rely on different basic theoretical assumptions, and second, they seem to address two types of business models. We refer to these as firm-centric and network-embedded business models. Based on this distinction, a scheme of analysis at the levels of the firm, relationship and network is suggested for the two types of business models. Business models are challenging from an analytical as well as managerial perspective. Further research on emerging network-embedded business models is suggested.     

Changes in industrial buying: Implications for industrial marketers

Some of the most dramatic changes in organizational buyer behavior have occurred and continue to occur in the industrial purchasing function. Purchasing is becoming less and less a lower-level staff function and more and more a top-level management position. This article examines some of the major changes in the purchasing function and the reasons for those changes. The article concludes by considering some of the major implications of these changes for the industrial marketer.     

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.     

Managing industrial brand equity: Developing tangible benefits for intangible assets

Young and Rubicam's (Y&R) BrandAsset Valuator® (BAV), commonly used to assess brand equity in consumer markets, was applied to assess the brand health of an industrial B2B supplier. Customers were asked questions about perceived esteem, relevance, knowledge and differentiation of the company to find its strengths and weaknesses. The results were then plotted to reveal the overall customer perception of the company and also its competitors. Through this plot, the strategic direction how to improve the brand equity of the company became clear. Evidence suggests that the BAV can be used in industrial markets to assess the brand equity of the firm.     

A Process model of strategic business exit: Implications for an evolutionary perspective on strategy

The process model of strategic business exit (SBE) maps the activities of different levels of management onto the business and corporate levels of strategy making involved in Intel Corporation's exit from its core dynamic random access memory (DRAM) business. The SBE process model contributes to the development of an evolutionary process theory of strategy making by conceptualizing the pattern of managerial activities through which resources and corporate competencies are internally redirected toward more viable business opportunities, and the strategic context of a core business dissolves. The SBE process model corroborates the usefulness of the Bower-Burgelman process model for conceptualizing strategy making in complex organizations.     

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.     

Towards a typology of collusive industrial networks: Dark and shadow networks

The prevailing understanding of collusive B2B networks is primarily based on the theories of industrial economists and organizational criminologists. ‘Successful’ collusive industrial networks (such as price-fixing cartels) have been seen to endure due to formal managerial structures of coordination and control. In this paper, we seek to transcend and challenge the understanding of these illegal forms of co-opetition by drawing on evidence from an in-depth examination of four price-fixing cartels that were facilitated chiefly by marketers. Our contribution introduces the notion of ‘shadow networks’ (networks where although attempts are made to ensure secrecy, multilateral modes of network structure dominate akin to ‘normal’ managerial endeavours such as joint ventures) and ‘dark networks’ (networks which appear more opaque and secretive through the adoption of bilateral modes of network structure and limited bureaucracy) to illustrate the types of collusive network forms that may exist. In addition, this allows us to build a deeper understanding of collusive network forms and related inter-firm interaction for an industrial marketing audience. We provide implications for marketing practice, theory, and policy. Specifically, we outline how organizations and the marketing function can perform self-administered antitrust audits in order to help avoid breaches of antitrust. Further, we consider the importance of the two forms of collusive inter-firm networks uncovered where marketers have attempted to render these secret from antitrust agencies, introducing a relatively new line of inquiry to the industrial marketing literature.     

When the purchasing agent is a committee: Implications for industrial marketing

This article describes a research project that investigated the relationship between the purchasing decision process occurring within a firm and intrinsic factors relating to the product. The study determined the effects of product complexity on the procurement process and identified those dimensions of complexity to which participating departments are sensitive. The results of the study provide information of great value to the theoretical development of buying centers as well as to those involved in targeting industrial marketing efforts.     

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.     

Strategizing in industrial networks

This paper provides an overview of the implications for strategizing offered by an industrial network perspective and a comparison of this view with strategic management thinking. We argue that it is crucial for a company to relate its activities to those of other firms in order to enhance its performance, and it is through the continuous combining and recombining of existing resources that new resource dimensions are identified and further developed within business relationships. From the standpoint of a single company, strategizing from an industrial network perspective implies that the heterogeneity of resources and interdependencies between activities across company boundaries, as well as the organized collaboration among the companies involved, must be considered simultaneously.     

Industrial brand value and relationship performance in business markets — A general structural equation model

This paper develops a general model of industrial brand value and relationship performance in business-to-business markets from the perspectives of consumer and industrial marketing literature. The structural equation model integrates the analysis of industrial brand value and relationship performance. The model describes the extent to which supplier-buyer transaction performance is influenced by the eight important factors: supplier competence, purchasing value, customer satisfaction, switching cost, brand trust and loyalty, relationship quality, commitment, and transactional performance.The general model is applied to organizational buyer groups of comprehensive industrial markets (Electronics, Chemicals, Equipment, etc). The analysis finds that supplier competence directly affects purchasing value and customer satisfaction, and via purchasing value and customer satisfaction, it indirectly affects commitment, switching cost, brand trust and loyalty. The managerial implications of the study results are also discussed.     

Managing in complex business networks

For many years, research and management thinking has focused on understanding business relationships and networks. Now, the focus is shifting to managing business relationships and networks. This new approach focus poses two questions. Since networks are loosely coupled systems, to what extent are business networks manageable? Furthermore, how can a firm's ability to manage a network be characterized and measured? This paper addresses these two questions by synthesizing the current state of knowledge on management issues in networks and the contribution to managerial abilities in complex relationships. The discussion leads to a set of propositions describing the abilities firms will need to successfully manage complex business networks.     

Inter-cognitive representations in business networks

This study aims at conceptualizing the different outcomes of inter-cognitive representations, such as manifestations of agreements between business actors, legally binding contracts, and industry standards and regulations which are developed through interactions between actors in business networks. Inter-cognitive representations inscribe shared understandings and thus prove an objectified basis for further interactions within the business network. To advance the study of inter-cognitive representations in business networks, we develop a conceptual framework that integrates two conceptual dimensions, namely, 1) ‘shared understanding of rules’ and 2) ‘interaction among interdependent actors’. The framework allows us to formulate four theoretical propositions that provide alternative hypotheses, which deserve further research and empirical testing.     

Tensions and ties in social media networks: Towards a model of understanding business relationship development and business performance enhancement through the use of LinkedIn

The era of social media networks has created significant opportunities for business relationship development yet there exists a paucity of research in this area. To address this, this paper identifies four key tensions within the current literature: relational versus transactional exchanges, emergent versus strategic social media network development, the pace of social media network formation versus the development of trust, and the notions of sharing and reciprocity versus competitive advantage. This study draws on the principles of netnography, incorporating data from 554 LinkedIn group interactions and 12 interviews with professionals in one global industry to provide insight into business relationship development stemming from one social media network. Significant contributions to theoretical and practical knowledge are made through the recognition of tensions in the literature, the application of the notion of Granovetter's ties to a contemporary context and the novel use of netnography. Furthermore, the resultant model conceptualises the use of social media networking in building networks and relationships which lead to new business and enhance business performance.     

The industrial brand personality scale: Building strong business-to-business brands

To remain distinct and build strong business relationships in a competitive business-to-business (B2B) environment, an increasing number of industrial marketers attempt to exploit the potential of branding. However, brand management in the industrial sector is still at its starting point. For this reason, the authors introduce the concept of brand personality to industrial markets. Based on a series of qualitative and quantitative studies, the authors develop and validate an Industrial Brand Personality Scale. Furthermore, they examine whether brand personality perception differences exist among different types of industrial transactions and among different members in the buying center. The analysis yields a framework for theoretical discussion and provides B2B managers with a tool to build strong B2B brands in an increasingly competitive industrial market.     

Corporate brand positioning in complex industrial firms: Introducing a dynamic,process approach to positioning

Approaches to positioning predominantly examine the input and outcome effectiveness of certain positioning strategies. However, less is known about the positioning management process and internal dynamics. This study remedies this limitation by identifying corporate brand positioning (CBP) in industrial firms as a strategic development process. Based on comparative case studies within two globally operating industrial multi-business firms, this study opens the proverbial ‘black box’ to reveal how CBP occurs over time and what the driving mechanisms are. Findings suggest understanding CBP as a recurring, multi-level process, making it more than just a corporate-level marketing activity. Positioning episodes are found to pass through seven stages, each creating enablers and barriers for change. CBP should be viewed as a political process that integrates stable corporate and business levels and temporary levels that emerge in micro-events of reflective strategic practice.     

The darker side of sustainability: Tensions from sustainable business practices in business networks

While the current literature generally assumes that implementing sustainable business practices (SBPs) will lead to improved wellbeing and positive outcomes, relatively little research has explored the potential tensions and conflicts that SBPs may cause in multi-actor networks. To address this issue, we conduct a qualitative multiple case study in a regional business network, including interviews with 43 managers in 17 firms in different industries. The findings of this study identify four types of tensions (economic, structural, psychological, and behavioral) that tend to emerge when firms implement SBPs in networks, and illustrate how different stakeholders (implementers, suppliers, customers, other network partners) perceive them. Overall, this study contributes to the current literature by highlighting the underexplored “dark side” of sustainability, and illuminating how organizational decisions aiming at improving collective wellbeing can also lead to tensions and conflicts. For managers, this study offers insights into how to anticipate, manage and mitigate potential tensions that might arise in business networks when one stakeholder decides to implement a SBP.     

Sustainable value co-creation in business networks

Even though the Service Dominant Logic (SDL) paradigm has contributed to the conceptualization of “value co-creation”, no academic study has further investigated the role played by sustainability in business-to-business (BtoB) value co-creation.Using case studies, we examine how BtoB companies embrace the concept of sustainability to co-create value. We determine that such a co-creation of value entails a two-stage process: first, suppliers co-create value with their customer's customers or end users by analyzing or co-creating sustainability awareness. Second, by integrating this behavioral knowledge, suppliers co-create with their direct customers, either a sustainable hybrid offering (a service bundled with a product) or an extended sustainable service. Such a service proposition enables suppliers' direct customers to increase performance (sustainability is at the core of value creation) or to integrate sustainability into their supply chain (sustainability is an incremental element of value creation).Our research enriches the SDL paradigm by demonstrating the role of sustainability in reinforcing or extending the service proposition in a value co-creation process that links the supplier and customer networks.