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The study here examines how business actors adapt to changes in networks by analyzing their perceptions or their network pictures. The study is exploratory or iterative in the sense that revisions occur to the research question, method, theory, and context as an integral part of the research process.

Changes within networks receive less research attention, although considerable research exists on explaining business network structures in different research traditions. This study analyzes changes in networks in terms of the industrial network approach. This approach sees networks as connected relationships between actors, where interdependent companies interact based on their sensemaking of their relevant network environment. The study develops a concept of network change as well as an operationalization for comparing perceptions of change, where the study introduces a template model of dottograms to systematically analyze differences in perceptions. The study then applies the model to analyze findings from a case study of Norwegian/Japanese seafood distribution, and the chapter provides a rich description of a complex system facing considerable pressure to change. In-depth personal interviews and cognitive mapping techniques are the main research tools applied, in addition to tracer studies and personal observation.

The dottogram method represents a valuable contribution to case study research as it enables systematic within-case and across-case analyses. A further theoretical contribution of the study is the suggestion that network change is about actors seeking to change their network position to gain access to resources. Thereby, the study also implies a close relationship between the concepts network position and the network change that has not been discussed within the network approach in great detail.

Another major contribution of the study is the analysis of the role that network pictures play in actors' efforts to change their network position. The study develops seven propositions in an attempt to describe the role of network pictures in network change. So far, the relevant literature discusses network pictures mainly as a theoretical concept. Finally, the chapter concludes with important implications for management practice.

Dyadic multi-dimensionality informs the variation that exists within and between network ties and suggests that ties are not all the same and not all equally strategic. This chapter presents a model of dyadic evolution grounded in dyadic multi-dimensionality and framed within actor-level, dyadic-level, endogenous, and exogenous contexts. These contexts generate both strategic catalysts that motivate network action and bounded agency that may constrain such network action. Assuming the need to navigate within bounded agency, the model highlights three strategic processes that demonstrate how dyadic multi-dimensionality underlies the evolution of strategic network ties.

This commentary addresses the problem of interfirm network formation from the perspective of multiple types of relationship content and of network structure. The approach builds on Burt’s (1980) typology of network structures and on a range of empirical studies on interorganizational networks. The chapter by Moldoveneau, Baum and Rowley on network evolution from an information-sharing perspective captures part of this research domain. The challenges posed by network evolution research are discussed in the broader light of multilevel analysis.

To investigate two explanations for how variations in social network structure might produce differences in cognitive and perceptual orientation. One explanation is that the extent to which structures lead people to feel strong social bonds encourages holism. The other is that the extent to which a network leads individuals to be concerned about distal network relations leads to holistic thinking.

An experimental study in which participants interacted in three-person networks of negotiated (with or without a one-exchange rule), generalized, or productive exchange before being administered the framed-line test, a common measure of cognitive and perceptual orientation.

Participants in network structures more likely to lead participants to be concerned about what was happening in relationships in the network of which they were not part performed relatively more holistically on the framed-line test. However, these effects did not extend to both modules of the test, and a check on the ordering of networks as reflecting concern with distal network relationships failed.

The experimental design was structured such that only one of the presented explanations could possibly be supported, whereas they both could be correct. Nevertheless, results do indicate that cognitive orientation did respond to variations in network structure.

Explanations for cultural differences typically implicate social structure, although the explanations often cannot be directly tested. Results show that social structure can produce effects that mirror differences thought to reflect profound cultural variations.

The social and cultural duality perspective suggests dual ordering of interpersonal ties and cultural similarities. Studies to date primarily focus on cultural similarities in interpersonal dyads driven by principles such as homophily and contagion. We aim to extend these principles for sociocultural networks and investigate potentially competing micro-principles that generate these networks, taking into account not only direct dyadic overlap between interpersonal ties and cultural structures, but also the indirect interplay between the social and the cultural.

The empirical analysis utilizes social and semantic network data gathered through ethnographic studies of five creative organizations around Europe. We apply exponential random graph models (ERGMs) for multiplex networks to model the simultaneous operation of several generative principles of sociocultural structuring yielding multiplex dyads and triads that combine interpersonal ties with meaning sharing links.

The results suggest that in addition to the direct overlap of shared meanings and interpersonal ties, sociocultural structure formation is also affected by extra-dyadic links. Namely, expressive interpersonal ties with common third persons condition meaning sharing between individuals, while meaning sharing with common alters leads to interpersonal collaborations. Beyond dyads, the dual ordering of the social and the cultural thus operates as asymmetrical with regard to different types of interpersonal ties.

The paper shows that in addition to direct dyadic overlap, network ties with third parties play an important role for the co-constitution of the social and the cultural. Moreover, we highlight that the concept of network multiplexity can be extended beyond social networks to investigate competing micro-principles guiding the interplay of social and cultural structures.

The present study increases our understanding of strong power in exchange networks by examining its incidence in complex networks for the first time and relating this incidence to characteristics of these networks. A theoretical analysis based on network exchange theory (e.g., Willer, 1999) suggests two network characteristics predicting strong power; actors with only one potential exchange partner, and the absence of triangles, that is, one's potential exchange partners are not each other's partners. Different large-scale structures such as trees, small worlds, buyer–seller, uniform, and scale-free networks are shown to differ in these two characteristics and are therefore predicted to differ with respect to the incidence of strong power. The theoretical results and those obtained by simulating networks up to size 144 show that the incidence of strong power mainly depends on the density of the network. For high density no strong power is observed in all but buyer–seller networks, whereas for low density strong power is frequent but dependent on the large-scale structure and the two aforementioned network characteristics.

We propose an information-based view of the dynamics of network positions and use it to explain why bridging positions become stronger. We depart from previous network dynamics studies that implicitly assume that firms have homogenous information about the network structure. Using network experiments with both students and managers, we vary a firm's network horizon (i.e., how much information a firm has about the network structure) and the network horizon heterogeneity (i.e., how this information is distributed among the firms within the network). Our results indicate that firms with a higher network horizon occupy a stronger bridging position, especially under conditions of high network horizon heterogeneity. At a more general level, these results provide an indirect validation of what so far has been an untested assumption in interfirm network research, namely that firms are aware of their position in the overall network and consciously attempt to improve their position.

Contributing to the literature on movement structure in authoritarian regimes, this analysis focuses on the structure of two Iranian movements. We use a multi-method approach to analyze the organization of the student and women’s movements in Iran between 1997 and 2008. From 1997 to 2004, a reform government opened political opportunities. The period between 2005 and 2008 was characterized by increased repression. The student movement was organized during the first period as a hybrid composed of several networks linked in a federal structure. As the political context changed, the movement became less centralized. Its strategy shifted from one based in alliance with governing reformers to coalition building outside of the regime. In contrast, the women’s movement was organized as a densely linked web of noncentralized campaigns. The women’s movement overcame divisions as political opportunities closed in the mid-2000s and built a grassroots strategy during the latter part of the decade.

Purpose – The purpose of this conceptual chapter is to discuss the limitations of the network organization in multinational corporations (MNCs). Since many IB/IM publications concentrate on the advantages of this organizational form, the focus of the chapter is on identifying the limitations that MNCs need to be aware of when they use network organizations.

Methodology – The analysis is based on a sound review of the literature that refers to the network organization in general and its application in MNCs.

Findings – The chapter shows that MNCs present a context that can aggravate the problems of a network organization. Four types of problems are identified: (1) knowledge transfer between MNCs’ subunits, (2) trust-building and corporate culture within MNCs, (3) subsidiary development and subsidiary managers’ stress, and (4) additional problems of a more general nature.

Practical implications – As a result of these problems, it is expected that the formal, hierarchical structure will remain an important organizational instrument for MNCs. The chapter specifies in which ways the formal organizational structure can help to reduce the limitations of the network organization. Finally, the chapter argues that, among the formal organizational models, the matrix structure should be considered more intensively in the future.

Originality/value of chapter – Since existing discussion of the network organization in MNCs tends to ignore the limitations and downsides of this organizational form, the chapter contributes to a more balanced understanding of the network organization.

We extend the literature on network perception by introducing a novel view of how this perception is structured. We propose the concept of Cognitive Aggregated Social Structures (CASS) as a framework to capture perceptions of opaque networks – that is, networks where relations are difficult to observe due to their features, their members, and the characteristics of the environment in which they operate. We argue that actors simplify their perception of opaque network structures via “chunking,” that is, by cognitively representing network ties as between categories of actors rather than between specific network members. We test the validity of the CASS construct and its predictive power by showing how these representations affect actors’ perceptions of relevant network outcomes. Using data from a major inter-organizational technology consortium, we show that perceived density among “chunks” in the knowledge transfer network is positively related to perceived consortium performance. Finally, we discuss the implications of our findings for the strategic management literature, highlighting potential contributions to strategic formulation and implementation, category emergence, industry evolution, and cognitive barriers to entry.