A firm’s competence development through its network of exchange relationships

Abstract

In discussing what a firm’s competence is all about and how that is developed over time, the focus has been on how a firm develops its “core” or “distinctive” competence all by itself. The imbeddedness of a firm in networks of exchange relationships and how that impinges on the development and nurture of a firm’s competence has attracted very scant study. The purpose of this study is to deepen our understanding of the extent to which a firm’s networks of exchange relationships influence its competence development. Two empirical case studies have been conducted in that regard. One important conclusion is that a firm’s network(s) of exchange relationships is an asset that can be exploited to develop its competence. An important implication of the study is that it takes a long time and many resources to build exchange relationships that last in our integrated markets. Many resources and skills will be needed to handle relationships, once established.

Citation

Baffour Awuah, G. (2001), "A firm’s competence development through its network of exchange relationships", Journal of Business & Industrial Marketing, Vol. 16 No. 7, pp. 574-599. https://doi.org/10.1108/EUM0000000006193