Decision Making in Inter-firm Networks as a Political Process

Abstract

A political-process-oriented approach to decision making is applied to an asymmetric network of firms, based on the notion of resource interdependen cies as the prime motivator of inter-firm exchange, and on a multi-dimensional view of power. Empirically, the paper draws upon a case study of the introduc tion of a computer-based decision aid (DPP) in the Swedish food industry. A theoretical model is developed, demonstrating how motives, structural condi tions and moves made by powerful as well as more dependent firms interact in shaping the decision process. A central theme is that structural change as well as the adoption of innovations within inter-firm networks is influenced by political activities during the decision process. The relevance of subtle moves aimed at influencing the perceptions and beliefs of other actors is espe cially stressed. The paper also suggests that more dependent firms do not necessarily give priority to balancing dependencies since they may actually jeopardize privileges not attainable within a less asymmetric structure.