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.     

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.     

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.     

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.     

Contagion and learning in business networks

The purpose of this study is to examine network learning through the application of contagion theories. The transmission of knowledge, sharing of resources, and facilitation of learning through contagion has interested both business-to-business and economic geography researchers. This study responds to calls in both research traditions for research into knowledge and learning at the level of an interfirm network. More specifically, it focuses on developing an understanding of how the contagion of knowledge and ideas and the co-ordination of activities within a network tales place. We achieve this by drawing upon research in both network relationships dynamics and learning processes to investigate the causal mechanisms that drive contagion. We focus on two types of contagion: contagion by cohesion (i.e. the presences and closeness of direct contact with others in the network), and contagion by structural equivalence (i.e. where influence is related to the structural patterns of relationships in the network). We also identify two key mechanisms that act as a barrier to such contagion: isolation and immunity. We explore the implications of these findings for network learning opportunities, specifically learning-by-doing, learning-by-using, and learning-by-interacting.     

Managing meaning in complex business networks

In examining Van de Ven and Poole's (2005) typology of different approaches for studying organizational change, this article focuses on underlying methodological premises and concludes that an ontological, and consequently also an epistemological, perspective seems to be lacking, if the aim is to fully understand change and a firm's networking ability. Arguing for increased sensemaking, an extended version of Van de Ven and Poole's (2005) typology is proposed, which aims to guide and improve future research in understanding the interplay between cognition, action and outcomes in business networks. First, the developed methodological matrix adds an alternative view of change as a theoretical foundation. Second, the proposed model represents a useful structure for analyzing different ways to further marketing theory. Third, the results also indicate that if the aim is to find a general theory of marketing, capable of integrating seemingly contrasting stances, the outlook on change has to be altered.     

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.     

Risk assessment and profit sharing in business networks

Nowadays network is the preferred governance form to conduct economic transactions. Network solution allows to reach flexibility maintaining cost and quality level. Since network concept refers to a great variety of organizational hybrids it is possible to choose the one that fits better market requirements. The new trends in inter-organization relationships push towards network solutions: companies are interested in relationships with partners and customers to overcome resource dependence, to enter too risky market or simply differentiate their business portfolio. The proposed research focuses on the network concept aiming at highlighting threats and opportunities to investigate the double nature of the risk concept. Network structures offer flexibility and higher profit as a consequence and business risk sharing opportunity.These two aspects (profit and risk) are strictly related and have to be considered together to depict a complete scenario; this implies that risk assessment and management in network environment cannot neglect profit sharing or, in other words, that profit sharing mechanisms should use risk as driver. In this context our research proposes a methodology to measure risk taking into account network peculiarities; risk estimation is a basic step to evaluate the opportunity cost of capital needed to compute the network Net Present Value (NPV) that is assumed as base in the profit sharing process. The profit sharing process has been tackled using the Shapley value approach that is inspired to the fairness principle while the opportunity cost of capital is assessed using the Capital Asset Pricing Model (CAPM).     

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.     

The drama of interaction within business networks

We propose a dramaturgical approach to the understanding of business networks with particular reference to IMP research. Our purpose is to focus upon immeasurable processes and practices too often neglected by the tangible, variance modeling of business networks (Colville & Pye, 2010; Rinallo & Golfetto, 2006). This paper follows our call to take language and communication more seriously (Ellis, Lowe & Purchase, 2006). The inventive fluidity of communication, in the form of dramaturgy, when added to the rather more entitative IMP model of Actors, Resources and Activities (Håkansson & Snehota, 1995) creates a more processual, theatrical ‘scenario’ of Actor-Characters, Resource Props and Scripted Activities. We employ the dramaturgical approach of Goffman (1956, 1961) which, in keeping with the approach of the IMP Group is centrally attentive to social interaction. In order to illustrate the potential contribution of this approach, we apply this dramaturgical perspective to the interactions described in a published case study (Helander & Möller, 2007, 2008a, 2008b).     

Exploring the roles of university spin-offs in business networks

This paper identifies different university spin-off (USO) roles related to resource interaction among business parties. It does so by mapping how USOs become part of business networks in terms of their roles relative to other parties. The theoretical frame of reference focuses on roles and resource interaction based on an industrial network approach to business markets. The empirical research is based on five cases of USOs representing a variety in terms of technology, degree of newness, sector, and area of application. As a result of the analysis, three different roles are identified: the USO as resource mediator, resource re-combiner and resource renewer. These roles reflect how USOs adapt resources to, or require changes among, business parties' resources. The paper also discusses the main resource interfaces associated with the three roles and related challenges. The paper contributes to previous research through illustrating USOs' roles relative to business parties from a resource interaction point of view, and by pointing to the establishment of new companies in business networks as a way of implementing innovation. Finally, the paper discusses the managerial implications of the research in terms of the USO's need to understand which role to take and how to develop it.     

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.     

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.     

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.     

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.     

Temporality of resource adjustments in business networks during severe economic recession

Business cycles are not a new phenomenon. Firms have in the past found ways to, more or less successfully, adjust their resources to such cyclical changes. However, the combination of a global crisis in financial markets and a severe down turn in demand on globally interdependent markets in the “real” economy is unprecedented which suggests that established business practices to handle cyclical variations are challenged. In this article we focus on temporal aspects of resource adjustments, taking into account also network interdependencies in contemporary markets. We develop a conceptual framework towards understanding how business actors construct temporality of resource adjustment activities. We relate temporal orientation of actors to temporal profiles of activities, seeing them as both influenced by actors' network orientation.     

Temporality in business networks: The role of narratives and management technologies

This paper addresses the nature of temporality in business networks. Approaches to temporality generally employ a dualistic approach: time can be understood as social and natural, tensed and untensed, subjective and objective, kairos or chronos, agency and structure. We examine these two approaches and suggest that the problem for situated actors is how to cope with and negotiate with these dualities. This is particularly salient in cases of innovation, when actors attempt to bring about their particular versions of the future facing acute problems of uncertainty. The innovation literature highlights the role of narrative in helping actors to negotiate uncertainty and construct spaces for action in a world of continuous flow. The emphasis on narrative tends to obscure the role of management technologies in anchoring narratives into existing routines and procedures as well as relate these technologies to the untensed world of chronos. Management technologies help stabilise entities and relationship amongst entities in what otherwise is a chaotic world of events and flux.     

Newness and heritage in business networks: Case analysis of university spin-offs

The paper's main purpose is to analyse newness and heritage, and what form it may take, in the context of university spin-offs (USOs). The empirical research is based on two cases of USOs generated from an Italian university. The case analysis provides an in-depth investigation of the conditions under which newness can be considered an asset rather than a liability, and sheds light on the role of heritage and how it is related to newness in spin-offs originating in an academic setting. The paper contributes to the literature on whether newness is to be considered a liability or an asset and enhances our understanding of heritage in the context of USOs. The study is also relevant to industrial marketing literature, as it addresses newness and heritage in business networks and affords the potential to better understand the two concepts and how they are linked. The paper demonstrates the existence of an interplay between heritage and newness that is manifest in the mitigating effects of the dimensions of heritage on those of newness: when the degree of heritage (in its various dimensions) is significant, the effects of newness are limited in terms of changes to the existing network, and vice versa.