Complexity of Business Network Relationships

Abstract

This paper aims to engage the relational perspective in network theory into analysis of the dynamics of networking. After reviewing a number of concepts that map the emergence and evolution of business network relationships, the paper proposes a model with the leading relational dimensions that frame transactions and exchanges in business networks. The evolution of business network relationships is explained with decisions and choices made by individual actors in a context of resource constraints and opportunities. The paper distinguishes between human and non-human actors and we accept objects (technologies and cultural artifacts) as actors in heterogeneous networks. Each relationship is framed by eleven leading relational dimensions or relational properties that can be used for comparisons across dyadic business relationships, or for projecting relational outcomes in a network context. Finally we employ an extended framework of the Actors-Resources-Activities model by Hakansson & Johanson (1993) to explain the evolution and dynamics of the business relationship through interconnected activities and resource flows, where overlapping interests of business actors produce shared resource flows and network activities. This model demonstrates the multiplexity of network relationships and the need for multi-level analysis of business networks.