how should companies interact in business networks?
DESCRIPTION
HOW SHOULD COMPANIES INTERACT IN BUSINESS NETWORKS?. Håkan Håkansson & David Ford (2002). Justine BILLET – Clara FAIVRE – Axel FENEAUX – Cassandre GERON – Marguerite GUIBOURG – Alix LUTON. NETWORKS. A. Nodes and threads Nodes = Business Units Threads = Relationships. Relationship. B. - PowerPoint PPT PresentationTRANSCRIPT
HOW SHOULD COMPANIES INTERACT IN BUSINESS
NETWORKS?Håkan Håkansson & David Ford (2002)
Justine BILLET – Clara FAIVRE – Axel FENEAUX – Cassandre GERON – Marguerite GUIBOURG – Alix LUTON
NETWORKSO Nodes and threads
Nodes = Business Units Threads = Relationships
A
B
Rela
tions
hip
BUSINESS NETWORKSBUSINESS RELATIONSHIP
O Uniqueness
O Investment
O Influence inside the company
BUSINESS NETWORKSBUSINESS RELATIONSHIP
CONNECTIONS BETWEEN RELATIONSHIPS
CustomerSupplier
A BC
Supplier
Customer
AB
C
Distributor-Supplier
A B C
MANAGERIAL QUESTIONS ABOUT RELATIONSHIPS AND
NETWORKS What kind of special opportunities and restrictions does a network bring to a
company?
What is the interplay between influencing others and being influenced by them?
How can a company control a network and what are the effects on the network and on
the company?
FIRST PARADOXOpportunities and limitations
in a networks
O Resources enable to offer innovative product and service features to end-users.
O Network position is affiliated to investment in the current structure and ways of thinking.
Already established network positions restrict the company’s ability to react new concepts/innovations.
Network
position
Own resource
sNetwork
MANAGERIAL IMPLICATIONS OF THE FIRST PARADOX
O Action in more difficult but more important in the network as it requires a change in the structure.
O Managing the network’s expectations, convincing.
O New relationship ?
SECOND PARADOXInfluencing and being influenced
in a network
Company
Outcomes of strategies and actions
Outcomes of those relationships and what
happened in them
SIMULTANEOUSLY
Relationships
MANAGERIAL IMPLICATIONS OF THE SECOND PARADOX
O Strategizing
O Commitment
O Extend of effects on network
O Individual managers
THIRD PARADOXControlling and being out of
control in networksO Need of power in a business
network
O But need of balance to let the relationship grow
MANAGERIAL IMPLICATIONS OF THE THIRD PARADOX
O Need to manage IN the network
O Need of analysis of resources
O Complexity
VIRAL MARKETING IN B2B NETWORKS
Company reputation
Network
Share of ideas
Partnerships
B2B
FIRST PARADOX AND VIRAL MARKETING
O Companies do not act, they interact
O Interactions = base of viral marketing
O Need to work on those interactions
FIRST PARADOX AND VIRAL MARKETING
SECOND PARADOX AND VIRAL MARKETING
O Influence / be influenced
O Interdependence / Co-dependence
O Acting & Interacting Conversations (Acting) Connections (Interacting) Results
THIRD PARADOX AND VIRAL MARKETING
O Risk of being over controlling
Potential partners will be aware of the situation thanks to the word-of-mouth.
THIRD PARADOX AND VIRAL MARKETING
O Risk of letting all the power to the other party of the network
Risk of attracting sharks.
CONCLUSION