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The benefits of network relations for firms’ competitive advantage are increasingly acknowledged in the strategic management literature. Yet, the cost implications of engaging in network-specific relations, stemming from the irreversibility of sunk costs invested in creating network relations, are largely ignored. Such costs tend to be especially pronounced in high technology firms. It follows that the costs of creating network relations may mask the benefits of such relations, suggesting that networks can be a competitive risk for firms in cases where network relations unexpectedly terminate. This chapter adopts a cost-benefit approach to an empirical analysis showing that while in the long term, network relations enhance high technology firms’ performance, short-term efforts in creating network relations may hamper their performance. Furthermore, we show that greater technological intensity intensifies the negative performance implications of short term network participation and the positive performance implications of long term network participation.

Based on the findings in earlier research of the importance of relationships in general, and relationships to social actors in particular to explain innovation processes in emerging economies, the aim of the paper is to reach a better understanding of the mechanisms behind innovations in these economies. This has been accomplished through an investigation of an innovation process and the relationships between two business firms and a NGO that were central for its progression. Theoretically the study is constructed on the concepts of trust, commitment and cultural capability in long and short-term relationships as discussed in business network theory and theory on discontinuous innovation. A case study method is used and the social innovation project ‘Connexão Belterra’ that enabled connectivity in the distant Amazon region of Pará, Brazil, was investigated.

The purpose of this paper is to bridge the boundaries separating strategic and comparative institutional perspectives on human resource systems and employment relations. Each research tradition has investigated the role and outcomes of corporations as they operate in an increasingly global economy. Researchers in these traditions, however, ask different research questions and draw on distinct social science disciplines, theoretical assumptions, and research methodologies. While they have pursued parallel but separate tracks, we argue that they have important lessons for each other. In this paper, we review the core characteristics and critiques of each research tradition, provide a series of examples of efforts to bridge their differences, and offer suggestions for future integration.

This chapter addresses social embeddedness effects on ex ante management of economic transactions. We focus on dyadic embeddedness, that is the history of prior transactions between business partners and the anticipation of future transactions. Ex ante management through, for example, contractual arrangements is costly but mitigates risks associated with the transaction, such as risks from strategic and opportunistic behavior. Dyadic embeddedness can reduce such risks and, hence, the need for ex ante management by, for instance, making reciprocity and conditional cooperation feasible. The chapter presents a novel theoretical model generating dyadic embeddedness effects, together with effects of transaction characteristics and management costs. We stress the interaction of the history of prior transactions and expectations of future business. Hypotheses are tested using new and primary data from an extensive survey of more than 900 purchases of information technology (IT) products (hard- and software) by almost 800 small- and medium-sized enterprises (SMEs). Results support, in particular, the hypotheses on effects of dyadic embeddedness.

This chapter focuses on the role played by both companies and universities on the dissemination of services and courses related to Business Diplomacy (BD). Special attention is given to the partnerships between companies and universities and to how BD is taught by universities around the world.

With an exploratory analysis technique, we have surveyed the websites of 22 companies and 20 universities and institutions, belonging to various countries, engaged in activities related to BD (i.e. services supply, courses at different stages of the academic curricula, workshops, seminars, training etc.).

The objective of the analysis was twofold: first, to give a better understanding of the concept of BD and of the various meanings associated with it; the results indicate that in both cases the practiced concept of BD is converging to the canonical set of diplomatic functions; second, to offer useful insights to practitioners in the field of BD by looking at the type of BD courses covered by the academic curricula of various universities and BD services offered by market companies.

This chapter presents a comprehensive analysis of the BD issue, going beyond its treatment as a mere auxiliary activity. It also offers a detailed overview of diplomacy’s main functions and adjuvant activities, with the purpose of advancing organisational charts’ structures inside companies, and academic syllabi offerings by universities.

With the disaggregation and fine-slicing of global value chains, offshoring and outsourcing has become increasingly relevant for many MNEs. The purpose of this chapter is to understand the value creation of the receiving partner of outsourcing activities. This is a firm that will have many outsourcing alliances with partners, and one perspective to frame these alliances is the alliance portfolio perspective. We ask – how can a firm on the receiving end of outsourcing create value through the management of its alliance portfolio?

Through a case study of a company supplying products to manufacturing industries, we investigate ways in which the company adds value for customers through different models of customer integration. Applying an alliance portfolio perspective, we study benefits of grouping alliances with customers and suppliers.

Whereas most studies of alliance portfolios have focused on value creation within a portfolio, we find that the mediating capability of coordinating between groups or portfolios of alliances is critical. We also see that the risk aspect is important for firms receiving outsourcing activities.

Our findings have implications for the strategy and organization of the mediating firm on the receiving end of outsourcing. We have only data from one firm, and therefore our findings need to be tested further.

Our findings have implications for managers organizing large alliance portfolios to include risk and mediation capabilities.

The chapter uses original in-depth data.

The evolution of the Fair Trade movement offers an apposite case through which to examine the idea of regulating risk through a “social sphere.” An analysis of Fair Trade through the lens of “defiance” reveals discrete models and actors of risk regulation that evolve in an iterative fashion. These findings not only add complexity and heterogeneity to the social actors and mechanisms of regulation in the social sphere, but also highlight the challenges this diversity poses for the project of alleviating market risk. In turn, the framework of defiance offers a fertile analytical framework for the study of transnational risk regulation by capturing the dynamic actor and institutional complexities that underpin, and embody challenges for, the regulation of risk through the social sphere. The article begins with an overview of the Fair Trade movement and consideration of Fair Trade’s approach to regulating market risk. It then introduces the notion of defiance, focusing on two of its subtypes: game playing and resistance. Following a short overview of the methodological framework employed to analyze these dynamics, the third section applies these analytical categories of defiance to explore primary data gathered on Fair Trade’s evolution. The article shows that the motivational posture of game playing, through its continued experimentation and entrepreneurship in transnational risk regulation, is pregnant with potential to mitigate the risks generated by economic activity.

This article presents a theoretical and empirical discussion of the way in which computer technologies (the internet) influence the production of sexuality, sexual fantasies, and specific sexual behaviors. This discussion is based on the case study of an Israeli website for sexual encounters, which its users say has brought out (or enabled) a specific sexuality that would not have emerged were it not for the new technology. This article focuses on a particular population from among the sites users: married men who surf the site to find men with whom to have one-off sexual encounters, and who report a positive experience of “life in the closet.” A total of 34 men were interviewed, 6 face-to-face and 28 in online interviews. The findings include three main accounts: (1) most of the interviewees said that the new technology (the website) enabled them to invent a new existential category, that of “married straight men who sometimes have sexual encounters with other men.” This category is seen as enabling a new sexuality, or a sexuality that would not have been enacted were it not for the internet; (2) the interviewees spoke of how “life in the closet,” and in particular entering and exiting it (which was called a “zigzag sexuality” or the “revolving doors of the closet”), creates an experience of a vital sexuality that fits in with their marriage to a woman and their life as a “straight” man; (3) many interviewees explained how the technology enabled them to keep their sexuality secret, where the secrecy itself was said to create a unique sexual desire. The discussion section shows how the new technology enables individuals to invent a new sexuality, to enact unique sexual fantasies, and to maintain an alternative self, or alternative components of their concept of self.

Multinational corporations (MNCs) are experiencing a number of major challenges in the international business arena. Can business diplomacy help them to deal with these challenges effectively? In this introductory chapter we conceptualize and identify the relationship between MNCs’ international business diplomatic activities and firm performance.

We conducted a literature review and interviews with five large MNCs that are operating in distinctive industries. Business diplomatic activities have been classified into three particular areas to support the analysis, namely: (1) MNC–Non-Governmental Organization (NGO) relations, (2) MNC–Host Government relations, and (3) MNC–Local Community relations.

The main findings suggest that international business diplomacy has a direct positive effect on firm performance with regard to so-called soft or nonfinancial indicators. These indicators include knowledge sharing, reputation, company image, and marketing possibilities. The effect can in turn lead to a better financial performance and market stance in the long run.

The results of this study are important for the future awareness and execution of business diplomacy in large MNCs.