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Article
Publication date: 1 May 1997

What are relationships in business networks?

Maria Holmlund and Jan‐Åke Törnroos

An understanding of business networks and the specific processes affecting change in networks is intimately connected to the understanding of the nature of relationships…

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Abstract

An understanding of business networks and the specific processes affecting change in networks is intimately connected to the understanding of the nature of relationships. Relationships constitute the core aspect which connects actors, resources and activities in a business network. Presents an overview of basic features of relationships. Groups relational concepts from the business marketing literature into structural, economic and social dimensions. Outlines a marketing model of three network layers in business networks based on different types of actors. The proposed network layers in the model constitute the production network layer, the resource network layer and the social network layer. Finally, assigns relational concepts to their related network layers in a relationship matrix.

Details

Management Decision, vol. 35 no. 4
Type: Research Article
DOI: https://doi.org/10.1108/00251749710169693
ISSN: 0025-1747

Keywords

  • Business strategy
  • Networks
  • Relationship marketing

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Article
Publication date: 29 January 2021

Digital communication, value co-creation and customer engagement in business networks: a conceptual matrix and propositions

C.M. Sashi

Technological innovations that resulted in the emergence and widespread adoption of digital communication in recent years have led to a surge of academic and practitioner…

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Abstract

Purpose

Technological innovations that resulted in the emergence and widespread adoption of digital communication in recent years have led to a surge of academic and practitioner interest in its implications for the co-creation of value and customer engagement. However, in comparison to the attention given to the study of customer engagement in consumer markets, few studies have examined its key role in business markets. This paper aims to examine the impact of digital communication on value co-creation and customer engagement in inter-organizational relationships in business networks.

Design/methodology/approach

Co-creation of value and customer engagement in business networks occurs among interconnected organizations that are partners in intermediate transactions. The paper develops a matrix of inter-organizational engagement among partners in business networks and propositions linking digital communication to value co-creation and inter-organizational engagement.

Findings

The relationships among network organizations may be characterized by the extent of relational exchange and inter-organizational bonds among them. Four types of inter-organizational engagement emerge: transactional partners, loyal partners, trusted partners and engaged partners. The partners co-create value to better satisfy customers.

Research limitations/implications

The paper is an initial attempt to develop a conceptual understanding of customer engagement in business markets and formulate propositions that can be further investigated. Networks of partner organizations co-create value, altering their input and output markets, value addition and products, permitting greater flexibility and customization in satisfying the needs of customers.

Practical implications

The ability afforded by digital communication for real-time interactive communication enables individuals from multiple departments and hierarchical positions within multiple organizations dispersed across geographic locations and industries to maintain contact, quickly and easily communicate task information, build trust and commitment in long-term relationships with network partners and provide superior customer value.

Originality/value

The paper represents a unique attempt to understand the nature of customer engagement in business markets. It discusses how digital communication alters market transactions among partner organizations in a network by facilitating changes in their make/buy decisions. It develops a matrix of inter-organizational engagement in business networks and propositions that improve understanding of the customer engagement concept and provide the foundation for strategies to better satisfy customers.

Details

European Journal of Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
DOI: https://doi.org/10.1108/EJM-01-2020-0023
ISSN: 0309-0566

Keywords

  • Value co-creation
  • Interactivity
  • Customer engagement
  • Digital communication
  • Business networks
  • Interorganizational relationships

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Article
Publication date: 29 January 2021

Integrating sustainability in business network initiation: the case of an Italian pasta maker

Andrea Sabatini, Thomas O’Toole and Gianluca Gregori

The purpose of this paper is to explore how sustainability is integrated into a new venture’s business network initiation. This study unpacks sustainability in business…

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Abstract

Purpose

The purpose of this paper is to explore how sustainability is integrated into a new venture’s business network initiation. This study unpacks sustainability in business network initiation using temporal bracketing and identifying its main processes. Temporal bracketing supports the understanding of the evolution of sustainability in network initiation. The processes help explore the sustainability patterns that emerge from the new venture’s attempt to integrate sustainability into network initiation.

Design/methodology/approach

The exploratory case study of an Italian pasta maker draws on industrial network theory to focus on the business network initiation of new ventures. The novelty is the integration of sustainability into the business network initiation literature. This paper adopts a single case study methodology and an abductive approach to analysis.

Findings

This study finds that sustainability in network initiation is achieved through three periods of initiation and through five processes that are overlapping, intertwined and reciprocal. This study suggests that sustainability can have a positive or negative impact when integrated into the initiation process.

Originality/value

This paper provides a conceptual framework for understanding how a new venture integrates sustainability in its network initiation. The framework comprises periods and processes of network initiation which show how a new venture can integrate sustainability in its business activities and resources through interaction with network actors.

Details

Journal of Business & Industrial Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
DOI: https://doi.org/10.1108/JBIM-02-2020-0076
ISSN: 0885-8624

Keywords

  • New venture
  • Business network initiation
  • Network initiation periods
  • Sustainability
  • Industrial network approach
  • Process

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Article
Publication date: 13 July 2020

Adopting a digital transformation strategy to enhance business network commons regeneration: an explorative case study

Alessia Zoppelletto, Ludovico Bullini Orlandi and Cecilia Rossignoli

This article aims to understand whether and how a digital transformation strategy (DTS) can strengthen the relationship between network organizations and the…

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Abstract

Purpose

This article aims to understand whether and how a digital transformation strategy (DTS) can strengthen the relationship between network organizations and the generation/regeneration of their business network commons (BNC). Further, it investigates the role of the DTS in managing the BNC, a critical source of business network success.

Design/methodology/approach

A two-year longitudinal case study of an Italian business network operating in the wine sector was conducted.

Findings

This study provides theoretical insights into the digital, sustainable shift of a business network. On combining a network's business strategy and its DTS, digital resources are a key driver to promote BNC regeneration. A DTS undertaken to manage, regenerate and preserve the BNC can positively affect organizational variables, such as participatory architecture, and the network-level organizational integration and can help in preventing opportunistic behaviors affecting the BNC. Moreover, the DTS supports quality and social responsibility.

Research limitations/implications

This study focuses on an Italian case and its findings are hence not generalizable. It would be interesting to study sustainable business networks' digital shift in different socioeconomic contexts as well as in different industry settings.

Practical implications

Network SMEs and other stakeholders (institutions, competitors and consumers) can foster the transition from a “business-as-usual” strategy to a long-term strategy for digitalized management of common resources.

Originality/value

The study is at the intersection of, and contributes to, several research streams. It contributes to the digital transformation literature by adding information on the positive externalities of digitalization in the social and economic environment. It also contributes to the early streams of organizational and managerial literature on the BNC.

Details

The TQM Journal, vol. 32 no. 4
Type: Research Article
DOI: https://doi.org/10.1108/TQM-04-2020-0077
ISSN: 1754-2731

Keywords

  • Digital transformation strategy
  • Digital transformation
  • Digital platform
  • Business network
  • Business network commons
  • Sustainability

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Book part
Publication date: 16 August 2014

Adaptation in Business Contexts: Working Triadic Relationships

Anne-Maria Holma

This study provides a comprehensive framework of adaptation in triadic business relationship settings in the service sector. The framework is based on the industrial…

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Abstract

This study provides a comprehensive framework of adaptation in triadic business relationship settings in the service sector. The framework is based on the industrial network approach (see, e.g., Axelsson & Easton, 1992; Håkansson & Snehota, 1995a). The study describes how adaptations initiate, how they progress, and what the outcomes of these adaptations are. Furthermore, the framework takes into account how adaptations spread in triadic relationship settings. The empirical context is corporate travel management, which is a chain of activities where an industrial enterprise, and its preferred travel agency and service supplier partners combine their resources. The scientific philosophy, on which the knowledge creation is based, is realist ontology. Epistemologically, the study relies on constructionist processes and interpretation. Case studies with in-depth interviews are the main source of data.

Details

Deep Knowledge of B2B Relationships within and Across Borders
Type: Book
DOI: https://doi.org/10.1108/S1069-0964(2013)0000020007
ISBN: 978-1-78190-858-7

Keywords

  • Adaptation
  • triadic business relationship settings
  • business services
  • corporate travel

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Book part
Publication date: 4 December 2003

THE ROLE OF SOCIAL AND HUMAN CAPITAL IN THE START-UP AND GROWTH OF IMMIGRANT BUSINESSES

Jennifer M Sequeira and Abdul A Rasheed

The central role of networks in advancing organizational and individual goals is well accepted (Adler & Kwon, 2002; Hite & Hesterly, 2001) in the management and sociology…

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Abstract

The central role of networks in advancing organizational and individual goals is well accepted (Adler & Kwon, 2002; Hite & Hesterly, 2001) in the management and sociology literatures. Networks are made up of two distinct types of ties: strong ties and weak ties. Strong ties refer to the network relationships that are close, stable and binding (Ibarra, 1993), as opposed to weak ties, that are more superficial and lacking in emotional investment. Network theory, however, suggests that strong ties may not provide the most beneficial opportunities for an individual/organization (Burt, 1997; Coleman, 1988) and conclude that in order for a business to succeed the entrepreneur must have a network made up of weak ties.

Details

Ethnic Entrepreneurship: Structure and Process
Type: Book
DOI: https://doi.org/10.1016/S1074-7877(03)04004-2
ISBN: 978-1-84950-220-7

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Book part
Publication date: 17 August 2017

Boundaries of Business Actors and Networks – Theoretical and Methodological Reflections

Kristin B. Munksgaard, Per Ingvar Olsen and Frans Prenkert

Boundary setting is identified as an important and highly useful factor, both in management practice and in dealing with phenomena in management research. It has…

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Abstract

Boundary setting is identified as an important and highly useful factor, both in management practice and in dealing with phenomena in management research. It has significant implications for how circumstances and phenomena will be analysed and interpreted. Change – moving or change in nature – is a key factor in all attempts to strategise and economise. The authors argue that boundary setting is critical in analysing and interpreting business problems, both in the practice of management and in business research. The nature and function of boundaries vary. It can be exemplified with two archetypes of organisation – the integrated hierarchy and the connected company. In the first, the basic principle for boundary setting is buffering to protect the company from external variations. In the second type, it is bridging – connecting the company with specific changing factors. One important consequence is that when analysing and handling boundaries, both location and permeability become the central aspects to consider.

Details

No Business is an Island
Type: Book
DOI: https://doi.org/10.1108/978-1-78714-549-820171012
ISBN: 978-1-78714-550-4

Keywords

  • Boundary setting
  • strategy
  • management
  • business networks

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Book part
Publication date: 26 August 2010

Chapter 8 Markets-as-networks theory: a review

Filipe J. Sousa

This paper exposes the development of markets-as-networks theory from formal inception in the mid-1970s until 2010 state-of-the-art, en route presenting its historical…

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This paper exposes the development of markets-as-networks theory from formal inception in the mid-1970s until 2010 state-of-the-art, en route presenting its historical roots. This largely European-based theory challenges the conventional, dichotomous view of the business world as including firms and markets, arguing for the existence of relational governance structures (the so-called “interfirm cooperation”) in addition to hierarchical and transactional ones.

Details

Organizational Culture, Business-to-Business Relationships, and Interfirm Networks
Type: Book
DOI: https://doi.org/10.1108/S1069-0964(2010)0000016011
ISBN: 978-0-85724-306-5

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Book part
Publication date: 8 April 2005

ORGANIZING INTERACTIVE PRODUCT DEVELOPMENT

Fredrik von Corswant

This paper deals with the organizing of interactive product development. Developing products in interaction between firms may provide benefits in terms of specialization…

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Abstract

This paper deals with the organizing of interactive product development. Developing products in interaction between firms may provide benefits in terms of specialization, increased innovation, and possibilities to perform development activities in parallel. However, the differentiation of product development among a number of firms also implies that various dependencies need to be dealt with across firm boundaries. How dependencies may be dealt with across firms is related to how product development is organized. The purpose of the paper is to explore dependencies and how interactive product development may be organized with regard to these dependencies.

The analytical framework is based on the industrial network approach, and deals with the development of products in terms of adaptation and combination of heterogeneous resources. There are dependencies between resources, that is, they are embedded, implying that no resource can be developed in isolation. The characteristics of and dependencies related to four main categories of resources (products, production facilities, business units and business relationships) provide a basis for analyzing the organizing of interactive product development.

Three in-depth case studies are used to explore the organizing of interactive product development with regard to dependencies. The first two cases are based on the development of the electrical system and the seats for Volvo’s large car platform (P2), performed in interaction with Delphi and Lear respectively. The third case is based on the interaction between Scania and Dayco/DFC Tech for the development of various pipes and hoses for a new truck model.

The analysis is focused on what different dependencies the firms considered and dealt with, and how product development was organized with regard to these dependencies. It is concluded that there is a complex and dynamic pattern of dependencies that reaches far beyond the developed product as well as beyond individual business units. To deal with these dependencies, development may be organized in teams where several business units are represented. This enables interaction between different business units’ resource collections, which is important for resource adaptation as well as for innovation. The delimiting and relating functions of the team boundary are elaborated upon and it is argued that also teams may be regarded as actors. It is also concluded that a modular product structure may entail a modular organization with regard to the teams, though, interaction between business units and teams is needed. A strong connection between the technical structure and the organizational structure is identified and it is concluded that policies regarding the technical structure (e.g. concerning “carry-over”) cannot be separated from the management of the organizational structure (e.g. the supplier structure). The organizing of product development is in itself a complex and dynamic task that needs to be subject to interaction between business units.

Details

Managing Product Innovation
Type: Book
DOI: https://doi.org/10.1016/S1069-0964(04)13001-9
ISBN: 978-1-84950-311-2

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Book part
Publication date: 27 December 2018

Entrepreneurs, Networks, and Economic Development: A Review of Recent Research

Edward J. Malecki

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Details

Reflections and Extensions on Key Papers of the First Twenty-Five Years of Advances
Type: Book
DOI: https://doi.org/10.1108/S1074-754020180000020010
ISBN: 978-1-78756-435-0

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