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Article
Publication date: 25 March 2024

Kristin B. Munksgaard, Morten H. Abrahamsen and Kirsten Frandsen

This study aims to investigate how companies’ understanding of the business network influences the creation of value in business-to-business relationships. The authors do this by…

Abstract

Purpose

This study aims to investigate how companies’ understanding of the business network influences the creation of value in business-to-business relationships. The authors do this by analysing dimensions in actors’ “network pictures” and illustrating how value perception and network understanding influence actors’ mutual effort to create value. Approaching relationship value from the point of actors’ cognitive understanding of their business network has so far been largely overlooked in relationship value research.

Design/methodology/approach

This study applies a qualitative case study methodology whereby dyadic data from a well-established business-to-business relationship is collected from 18 company representatives through personal interviews and group interviews supplemented by participant observations and company data.

Findings

The findings contribute with new insight into how companies’ understanding of their surrounding network influence (facilitates or limits) relationship value creation. The authors find that companies continuously reflect on changes in their networks and the related changes in partners’ value perceptions. Through value articulations, companies seek to explicitly express their value perception. Value reflections and value articulations create a dynamic process formed not only by the individual actor but also through their relationship and engagement in their network environment. This requires companies to develop their networking capabilities.

Research limitations/implications

This paper presents findings, insights and contributions limited to a case study of a particular business relationship within an industrial setting. Although the findings and contributions are valid and in line with the criteria for rigorous qualitative research, the authors advocate and call for additional studies that investigate relationships value creation and address the interplay between actors’ network understanding and their actions and behaviour. One way to approach this would be to test the four propositions derived and presented as part of the present study.

Practical implications

The findings imply that management needs to be aware not only of the value created and delivered to a specific partner but also of how the partner’s understanding of the wider network will influence the value delivering and capturing process.

Originality/value

This study contributes to the growing literature on relationship value creation by outlining a dynamic process where relationship partners reflect upon and articulate value. Such activities are influenced by the partners’ network understanding and form the basis of the mutual relationship value creation effort. The findings also contribute to the network pictures literature by emphasizing insights into the formation of value perceptions through actors’ understanding of their surrounding networks.

Details

European Journal of Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 17 July 2020

Birgit Leick and Susanne Gretzinger

Research on business networks in organisationally thin regions, which are characterised by a low density and quality of business networks, is still in its infancy, while the…

Abstract

Purpose

Research on business networks in organisationally thin regions, which are characterised by a low density and quality of business networks, is still in its infancy, while the facilitation of business networks receives increasing interest. The present paper combines both perspectives by investigating how different types of network brokers facilitate business networking and knowledge-sharing in organisationally thin regions.

Design/methodology/approach

Burt's theory on brokers in social networks is applied to knowledge-sharing in business networks for organisational thinness as context. A qualitative case study represents the empirical basis that describes network brokers from various domains in three different German case regions, which are characterised by organisational thinness.

Findings

The network brokers studied facilitate different types of business networks, and they use various levers to increase knowledge-sharing among companies in business networks. Two broker types emerge, private business-driven versus public policy-driven network brokers with distinct approaches to the facilitation of business networking and knowledge-sharing and different limitations due to organisational thinness.

Practical implications

Companies, notably SMEs, in contexts characterised by low networking density and quality may benefit from various types of network brokers that foster business networking and instigate knowledge exchange. Public policy should embed activities of private brokers in existing SME assistance programmes to increase the quantity and quality of business networks.

Originality/value

Network facilitation in regions with weaknesses in their endowment with industry clusters, business networks and innovative knowledge exchange is under-explored, and this paper contributes to shedding light on this topic with a case study.

Details

Journal of Small Business and Enterprise Development, vol. 27 no. 5
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 7 June 2013

Laure Clasadonte, Elizard de Vries, Jacques Trienekens, Pedro Arbeletche and Jean‐François Tourrand

South America is an important agricultural producer. Farming is characterized by the availability of vast areas of land, a reasonable climate and low cost. These conditions have…

Abstract

Purpose

South America is an important agricultural producer. Farming is characterized by the availability of vast areas of land, a reasonable climate and low cost. These conditions have led South America to be an important supplier of agricultural goods on the world market. Traditionally farmers owned some hundreds of acres and invested their money in all kinds of assets, i.e. land, buildings and equipment. A new phenomenon has emerged in this area i.e. farming companies. These companies have capital but do not own assets. They rent what they need, i.e. land, work force, machinery, transportation, storage and manage from 15,000 ha to 330,000 ha. The purpose of this paper is to determine the perspective of network companies.

Design/methodology/approach

Representatives of 11 network companies in Uruguay and Argentina were interviewed, which provided the opinions of 81 interviewees.

Findings

The most important conclusion of this research is that, though sometimes these companies are called in a pejorative way pools de siembra, network companies might bring prosperity to the members of their supply chain and to a larger extent to the rural population of South America. The possibilities to reduce risk with regards to bad weather, to optimize the combination of soil and crop, and to realize economies of scale are the main factors for this success.

Originality/value

The size and number of network companies is steadily growing and this study contributes to a large debate taking place in Argentina and Uruguay, in order to assess the real impacts of these companies on the economy, environment and population.

Details

British Food Journal, vol. 115 no. 6
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 27 July 2012

Maciej Mitręga

Marketing is the area of coexistence of various research traditions with regard to relational phenomena. This study aims to contribute to limiting the gap between these traditions…

3031

Abstract

Purpose

Marketing is the area of coexistence of various research traditions with regard to relational phenomena. This study aims to contribute to limiting the gap between these traditions by testing the influence of network partner knowledge and internal relationship quality on company performance and customer relationship quality.

Design/methodology/approach

This is a research paper where hypotheses are derived from prior studies referring to relationship marketing, B2B networks and internal marketing. The hypotheses are tested by using a sample of 264 companies operating in B2B markets and by structural equation modeling.

Findings

Customer relationship quality is empirically supported here as a factor mediating influence of network partner knowledge and internal relationship quality on company performance. The proposition of this paper is that company ability to deal effectively with a network in which it is embedded (including internal network) is the antecedent of dealing with customer relationships effectively. The moderator effects of the dominant profile of business are also discussed.

Research limitations/implications

The limitations of the research are presented with regard to the sampling method, research technique/scope and cultural context. The research results may be treated as a direction for further studies exploring connections between constructs from various approaches to relational phenomena in marketing.

Practical implications

This study brings strategic insights into knowledge of business relationships, by investigating empirically whether the focal company may benefit from their external and internal relationships.

Originality/value

To the best of the author's knowledge, there has been no study examining the proposed set of inter‐related research constructs so far.

Article
Publication date: 25 January 2008

Jukka Ojasalo

The literature includes a vast amount of research on both innovation and business networks; however, the empirical knowledge of their intersection – innovation networks and their…

10244

Abstract

Purpose

The literature includes a vast amount of research on both innovation and business networks; however, the empirical knowledge of their intersection – innovation networks and their management – is still scarce. This empirical study aims at increasing the knowledge of management of innovation networks by mapping characteristics of management approaches of two case companies. These companies operate in the software business and develop their products in inter‐organizational networks. Special attention is paid to differences in the management approaches between the case companies.

Design/methodology/approach

The present empirical article is based on analysis of two case companies representing very different and contrasting approaches to management of innovation networks. The empirical study is conducted among SMEs in the software business.

Findings

As a result of the analysis, several aspects of management of innovation networks are identified and their nature explained. These aspects are: duration of the network; rewards from the network; fundamental meaning of the network; the nature of the networked organization; planning, control, and trust; and hierarchies, authority, and coordination. These aspects are powerful in mapping and explaining the characteristics of innovation network management.

Originality/value

Various management practices are suggested and discussed in the context of each of the identified aspects of innovation network management.

Details

European Journal of Innovation Management, vol. 11 no. 1
Type: Research Article
ISSN: 1460-1060

Keywords

Article
Publication date: 9 January 2018

Jafar Razmi, Anis Hassani and Ashkan Hafezalkotob

Over the past two decades, in developed countries a trend towards the liberalization and restructuring of the gas market has been observed. Today, restructuring is an ongoing…

Abstract

Purpose

Over the past two decades, in developed countries a trend towards the liberalization and restructuring of the gas market has been observed. Today, restructuring is an ongoing process. In this study, a restructured natural gas market has been considered in which several regional distribution companies have ownership of the network and are competing against each other to gain more benefits. The main purpose of this study is to achieve efficiency and economic rationality in such a market through horizontal cooperation.

Design/methodology/approach

A restructured natural gas distribution network is modeled as a cooperative game to estimate the potential cost savings for various collaboration scenarios. In addition, the cost savings’ allocation among collaborating companies is evaluated using the cooperative game theory.

Findings

The results reveal validity and efficiency of the solution of the proposed model and capabilities of the cooperative game theory for reduction in gas distribution costs and improvement in the service level.

Research limitations/implications

This study is limited to natural gas in one region of Yazd City in Iran. Moreover, one segment of the natural gas network (i.e. distribution network) is modeled. Moreover, long-term cooperation between companies relies on fair distribution of cooperation benefits to the participants.

Practical implications

For the purpose of comparison and to get an insight into properties of the cost savings game, the real case study of one region of Yazd city in Iran is implemented.

Originality/value

This study contributes to the competitive models in the restructured gas market, particularly, in gas distribution network. The main contribution is to provide potential benefits for the participants via the horizontal cooperation.

Article
Publication date: 1 June 2003

Mats B. Klint and Ulf Sjöberg

This paper is focused on the elaboration of a comprehensive model for the analysis and understanding of strategic networks/alliances, by using the classic…

3858

Abstract

This paper is focused on the elaboration of a comprehensive model for the analysis and understanding of strategic networks/alliances, by using the classic: structure‐conduct‐performance‐paradigm. The intention in developing such a comprehensive model is to identify factors and/or elements, which may be considered more relevant than other factors, in the creation and maintenance of strategic networks/alliances. With the model it should be possible to describe that the performance of the joint actions, such as general success of the network cooperation, the profits achieved by individual companies, or the appreciation perceived by the individual, are functions of conduct, such as interaction, exchange of knowledge and adaptation. These factors are in turn governed by structural phenomena, which are discussed in the paper. Different dimensions, levels of aggregation as well as sequences of cause and effects in the process of creating and managing strategic networks/alliances, is included and discussed in the paper.

Details

International Journal of Physical Distribution & Logistics Management, vol. 33 no. 5
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 7 August 2009

Heiko Thimm and Karsten Boye Rasmussen

This paper aims to investigate the management process in company networks. A new information support service can assist network managers in the complex task of orchestrating…

Abstract

Purpose

This paper aims to investigate the management process in company networks. A new information support service can assist network managers in the complex task of orchestrating members of the network to so‐called network actor sets (NAS) that deliver the “best fit” for incoming inquiries.

Design/methodology/approach

A corresponding conceptual framework and system approach is developed. The proposed system employs a pragmatic two‐phase multi‐criteria scoring scheme for orchestrating NAS under consideration of the specific needs of inquiries and, too, the company network as a whole.

Findings

The research indicates that the orchestration of NAS may be effectively performed by a corresponding information technology (IT) support service. Through the service orchestration decisions may become less influenced by human factors. The service will also lead to better transparency, traceability, and analytical possibilities regarding the inquiry management process. Networks with a high number of members and with many overlaps in company profiles and competences will find this service useful.

Research limitations/implications

Further orchestration criteria will be explored in the future by a simulation study.

Practical implications

The paper presents recommendations for structuring the inquiry management process in company networks to improve effectiveness by the use of IT. Also, it contains a sound framework for the implementation of the proposed service as part of IT infrastructures for company networks.

Originality/value

The paper presents major insights, concepts, and a system approach for a novel information support service for network moderators.

Details

Management Research News, vol. 32 no. 9
Type: Research Article
ISSN: 0140-9174

Keywords

Article
Publication date: 1 February 2016

Marek Szwejczewski, Michael T Sweeney and Alan Cousens

The purpose of this paper is twofold; first, to investigate whether the manufacturing specializations of network plants fulfilling similar strategic plant roles (Ferdows, 1997…

2403

Abstract

Purpose

The purpose of this paper is twofold; first, to investigate whether the manufacturing specializations of network plants fulfilling similar strategic plant roles (Ferdows, 1997) are common in type. Second, to examine current strategic manufacturing network management practice and develop a map of this process.

Design/methodology/approach

Three multisite manufacturing businesses participated in this case research. The first phase of the study consisted of an initial visit made to the headquarters of each firm to be briefed on its manufacturing network strategy and to collect company manufacturing performance data. Visits were then made to 11 network plants to collect site manufacturing performance data and to research the manufacturing specialization of each site and the degree of autonomy of its management team. The second phase of the research comprised a number of additional visits to the headquarters of one of the three case study firms to investigate the process employed to downsize its existing manufacturing network capacity in response to a significant decline in customer demand.

Findings

Three common types of manufacturing specialization have been identified in the networks of plants studied and the case research findings have enabled the development of a process for manufacturing network strategy deployment.

Research limitations/implications

The proposed process for the strategic management of a manufacturing network is based upon the findings of a single case study and thus the generalizability of the findings is limited.

Practical implications

Auditing the manufacturing specialization of network sites is an essential preparatory procedure for determining a manufacturing network strategy. How this information is used to facilitate the management of manufacturing network configuration and coordination and for manufacturing network strategy deployment is detailed in the paper.

Originality/value

A process map has been developed that includes a review of current network configuration and coordination policies, in combination, as these underpin manufacturing network strategy deployment. Such a process map has not been detailed previously in the literature.

Details

Journal of Manufacturing Technology Management, vol. 27 no. 1
Type: Research Article
ISSN: 1741-038X

Keywords

Book part
Publication date: 21 October 2019

Joanna Radomska, Przemysław Wołczek and Susana Costa e Silva

The manager of the 21st century is expected to succeed in an environment strongly characterized by unprecedented volatility, uncertainty, complexity, and ambiguity (VUCA). In…

Abstract

The manager of the 21st century is expected to succeed in an environment strongly characterized by unprecedented volatility, uncertainty, complexity, and ambiguity (VUCA). In fact, today’s business environment consists of contradictory pressure and tensions, where competitive advantage could be gained by ambidextrous activities. The concept of ambidexterity has already been discussed by many scholars, but still little is known about managerial practice and actions that are useful for finding the balance between the paradoxes that have been identified at that level. Although there are different tensions, dynamic and evolving according to the changes observed in the environment: more volatile, uncertain, complex, and ambiguous, the pressure to remain flexible and simultaneously maintain the plan of development, seems to be essential. In recent research studies, networking perspective is mentioned as one of areas worth exploring while analyzing the concept of ambidexterity. For that reason, the main goal of this chapter is to investigate if networking is one of the factors useful for managing ambidexterity. To gain deeper insight, we investigated further, searching for the factors essential for managing ambidexterity: we compared the research results between companies of different sizes to identify any regularities. We focused on ambidexterity reflected by managerial practice where stability/plans and flexibility are implemented simultaneously. We investigated 150 managers using paper-and-pencil interviewing. Our research results confirmed that networking could be one of the main approaches having an impact on ambidextrous activities. However, we cannot conclude that companies are obliged to apply a networking perspective to be ambidextrous, although it could be recommended. Further analysis of companies of different sizes revealed the relationship between ambidexterity and networking in case of small and large companies, and no relation in medium-sized enterprises.

Details

International Business in a VUCA World: The Changing Role of States and Firms
Type: Book
ISBN: 978-1-83867-256-0

Keywords

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