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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.

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how should companies interact in business networks
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
NETWORKS

A

  • Nodes and threads
    • Nodes = Business Units
    • Threads = Relationships

Relationship

B

business networks business relationship
BUSINESS NETWORKSBUSINESS RELATIONSHIP
  • Uniqueness
  • Investment
  • Influence inside the

company

business networks business relationship1
BUSINESS NETWORKSBUSINESS RELATIONSHIP

CONNECTIONS BETWEEN RELATIONSHIPS

managerial questions about relationships and networks
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 paradox opportunities and limitations in a networks
FIRST PARADOXOpportunities and limitations in a networks
  • Resources enable to offer innovative product and service features to end-users.
  • 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.
managerial implications of the first paradox
MANAGERIAL IMPLICATIONS OF THE FIRST PARADOX
  • Action in more difficult but more important in the network as it requires a change in the structure.
  • Managing the network’s expectations, convincing.
  • New relationship ?
second paradox influencing and being influenced in a network
SECOND PARADOXInfluencing and being influenced in a network

Company

Outcomes of strategies and actions

SIMULTANEOUSLY

Relationships

Outcomes of those relationships and what happened in them

managerial implications of the second paradox
MANAGERIAL IMPLICATIONS OF THE SECOND PARADOX
  • Strategizing
  • Commitment
  • Extend of effects on network
  • Individualmanagers
third paradox controlling and being out of control in networks
THIRD PARADOXControlling and being out of control in networks
  • Need of power in a business network
  • But need of balance to let the relationship grow
managerial implications of the third paradox
MANAGERIAL IMPLICATIONS OF THE THIRD PARADOX
  • Need to manage IN the network
  • Need of analysis of resources
  • Complexity
first paradox and viral marketing
FIRST PARADOX AND VIRAL MARKETING
  • Companies do not act, they interact
  • Interactions = base of viral marketing
  • Need to work on those

interactions

second paradox and viral marketing
SECOND PARADOX AND VIRAL MARKETING
  • Influence / be influenced
  • Interdependence / Co-dependence
  • Acting & Interacting
    • Conversations (Acting)
    • Connections (Interacting)
    • Results
third paradox and viral marketing
THIRD PARADOX AND VIRAL MARKETING
  • Risk of being over controlling

 Potential partners will be aware of the situation thanks to the word-of-mouth.

third paradox and viral marketing1
THIRD PARADOX AND VIRAL MARKETING
  • Risk of letting all the power to the other party of the network

 Risk of attracting sharks.