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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.

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.

In a relationship both sides are important for the development. This is one reason why purchasing has always been as central as marketing in the empirical studies in IMP. The manner in which the features of business networks affect the role of purchasing and the roles of the suppliers and supply management is here in focus. The existence and importance of business relationships have normative consequences for purchasing that are very distinct and break clearly with some of the traditional normative recommendations for purchasing. The authors believe that ‘buying organisations increasingly need to develop interactive interfaces with their suppliers. One reason is that collaborative innovation and therefore the development role of PSM (purchasing and supply management) is becoming more important’. The conclusion is clear: If the buying organisations want to get more out of the suppliers than the supply of a standard product at a certain price, they have to engage in a more extensive interaction and develop a broader and closer business relationship that must be properly managed. That implies giving up some autonomy and accepting dependence on suppliers as developmental partners.

This chapter presents an exploratory study aiming at understanding how the largest multinational enterprises (MNEs) engage small- and medium-sized enterprises (SMEs) in their (inclusive) business strategies, either as suppliers, distributors, customers, innovators or as a target of their (Corporate Social Responsibility) CSR policies.

We explore the implicit or explicit strategies of 100 largest companies in the world towards SMEs as mentioned in their annual and CSR reports. This approach takes in particular stock of the ‘narratives’ developed by MNEs as an expression of their intended and (perceived) realised strategies.

The analysis of company statements show a country of origin effect in that European firms are clearly amongst the leaders in experimenting with inclusive business strategies that include SMEs. However, their number still remains limited. Sectors like banking and retail have developed the most interesting examples that are also spread over a large number of functions.

Although the results are not yet very radical, the developed taxonomy for the different types of approaches in which MNEs take a more or less active position towards SMES provides material for further studies. It can be applied in studying leading (better-practice) cases in order to help policy makers and business strategists to develop better business models for inclusive growth.

The growing modularization of complex products encourages the division of labor in industry. End product manufacturers outsource production of individual components to large module suppliers, saving on costs in the short term. In the medium term, however, they sacrifice competences. The competitive strategy they choose – either cost leadership or differentiation – determines how this conflict is resolved. This paper examines the shift in competences to module suppliers, and the likely reactions of end product manufacturers, particularly those pursuing a differentiation strategy. The discussion begins at a general level, and then focuses on the automotive industry as an example. The paper derives potential strategic actions going forward based on transaction cost theory and core competency theory, and conducts a content analysis to examine them empirically.

This chapter explores two business and innovation strategies to increase sustainability in a small-medium enterprise. The two strategies, one addressing the improved sustainability of an existing product line and the other addressing the development and implementation of a new product line, employ different supply chain sustainable practices and utilize different dynamic capabilities.

The chapter describes how sustainable supply chain management practices, sustainable new product development processes, and theories of dynamic capabilities interact to support a sustainable and differentiated strategy in the Alcass organization.

The models of sustainable supply chain management and sustainable new product development are applied to “more sustainable” products and “new sustainable” products, by raising different relevant practices as well as different supporting dynamic capabilities.

A special type of interaction and relationship exists between owners and public companies. Applying the business relationship perspective to owner relationships has some interesting implications. Contemporary theory assumes that the role of the owner is mainly providing financial resources (funding). Taking the business network perspective, the owner’s relationships are also important as these influence and shape interaction patterns including business relationships and thus the business network. Prior research has shown that the owner – especially if it is a business unit – can be directly involved in both the choice and development of specific customer and/or supplier relationships. These influences from owners can be much more important for the development of the company in question than providing financial resources. One consequence of applying this relationship view on ownership is that it offers the possibility of discussing public ownership in a similar way as private ownership.

This chapter explores the reconstruction of the illy’s coffee supply chain in Brazil. The original supply chain was disrupted by fluctuating prices and inefficiencies and renovated based on network relationships between the focal company and the coffee growers. It describes the peculiar experience of illycaffe (an international coffee roaster based in Italy) in building social capital into its supply chain and resulting in a more sustainable network.

The chapter summarizes the development of different types of social capital and applies the concepts to understand illy’s journey towards quality and supply chain sustainability. The research design is consistent with theory elaboration from a single case study.

The chapter applies social capital theory to food commodity supply chains. The evolution to a more reliable and sustainable supply chain for illy’s Arabica coffee in Brazil suggests that supply chain relationships are a crucial asset for the focal firm, the local communities, and society at large. Results also show that developing such relationships might lead to better product quality, supply chain sustainability, and improved supply base capabilities.

The findings of this chapter contribute to the definition of a relational governance model for global food commodity supply chains. From a research standpoint, the empirical setting allows analyses of antecedents and consequences of different social capital components in the food supply chain. In addition, the case may help executives understand how to leverage supply chain relationships and identify a path to product quality and supply chain sustainability.

Manufacturers increasingly seek new ways to add customer value and differentiate. However, in business markets such efforts often remain relatively unsuccessful, leading to a large number of services offered and higher costs, but with limited corresponding returns. Based on extensive expert interviews and case study research, this paper studies how suppliers in the highly commoditized metalworking industry try to realize new types of customer value. The paper identifies “ideal” value positions pursued by Belgian contract manufacturers and service providers in order to survive in an industry characterized by fierce price competition from low labor cost countries. Further, the paper shows how companies can migrate to these “ideal” value offerings. Key success factors and potential traps for each ideal type are identified. Market strategy transition necessitates an internal “alignment” strategy and an external “coevolution” with chain partners.