Developing Relationships in Business Networks

Developing Relationships in Business Networks

This book is the first to apply the network approach to the analysis of business relationships in a global context. Drawing on a wide variety of international case. studies, a `network approach' is developed, giving rise to far-reaching theoretical and practical managerial insights and a different way of conceptualizing companies within markets. New angles emerge on traditional problems of business management, with some novel implications which will challenge established ways of analysing business markets.

Building on previous research in the area, this thought-provoking work will be of great interest to researchers and students in industrial marketing, business strategy and purchasing, as well as to marketing specialists and consultants.

H?kan H?kansson is Professor of Industrial Marketing, University of Uppsala. Ivan Snehota is Associate Professor, also at the University of Uppsala.

Developing Relationships in Business Networks

Edited by H?kan H?kansson and Ivan Snehota

First published 1995 by Routledge 11 New Fetter Lane, London EC4P 4EE

Simultaneously published in the USA and Canada by Routledge 29 West 35th Street, New York, NY 10001 ? 1995 H?kan H?kansson and Ivan Snehota

Typeset in Times by Solidus (Bristol) Limited Printed and bound in Great Britain by T.J. Press (Padstow) Ltd, Padstow, Cornwall

All rights reserved. No part of this book may be reprinted or reproduced or utilized in any form or by any electronic, mechanical or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers.

British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library

Library of Congress Cataloging in Publication Data

Developing relationships in business networks / edited by H?kan H?kansson and

Ivan Snehota. p. cm.

Includes bibliographical references and index.

ISBN 0--415--11570--1

1. Business communication. 2. Export marketing. I. H?kansson, Haan, 1947-- . II.

Snehota, Ivan.

HF5782.D48 1994

94--19938

658.8'12--dc20

CIP

ISBN 0--415--11570--1

Contents

List of figures List of tables List of contributors Preface

1 Relationships in business

1

1.1 The starting point

1

1.2 Business relationships -- what do we know?

6

1.3 Interdependencies and connectedness in business relationships

12

1.4 Business relationships in market networks

18

2 Analysing business relationships

24

2.1 The concept of relationship

25

2.2 The substance of business relationships

28

2.3 Functions of business relationships

36

2.4 Development of business relationships

42

2.5 Coping with relationships

46

3 Activity links

50

3.1 The activity dimension in business relationships

52

3.2 Case histories: SweFork, Glulam and Swelag

63

3.3 Management implications

119

4 Resource ties

132

4.1 The resource dimension in business relationships

133

4.2 Case histories: Vegan, NME and Radex

147

4.3 Management issues

182

5 Actor bonds

192

5.1 Actor dimension in business relationships

193

5.2 Case histories: MTF, Omega, Measuretron, Sunds and Svitola

204

5.3 Management issues

261

6 Stability and change in business networks

269

6.1 The process of networking

271

6.2 Vectors of change in business networks

275

6.3 Case histories: Datacorp, Inteq and Fujitsu

284

6.4 Management issues

319

7 Analysis of relationships and networks in complementary

330

approaches

7.1 Developing a medical equipment innovation within a complex network

7.2 Product development within networks

347

7.3 Comments

356

7.4 Governance mechanisms in a network organization

357

7.5 Authority and trust in network relationships

368

7.6 Comments

379

7.7 Summary

381

8 Economy of business relationships and networks

382

8.1 Economy of networks -- the macro level

383

8.2 Economy of relationships -- the micro level

384

8.3 An effective network actor

396

Notes

398

Bibliography

402

Index

413

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