Network Of Business Relationships Research Articles

The Sustainable Business Model in Value Creation: Process and Outcome from Business Network Relationships

The Sustainable Business Model in Value Creation: Process and Outcome from Business Network Relationships

Principal–Agent Relationship Within a Cruise Supply Chain Model for China

Changes in travelers’ booking habits and the evolution of technology have come to threaten the existence of traditional travel agents (TAs). However, the cruise industry still relies heavily on TAs as its main distribution channel. A qualitative study was conducted to investigate the networks, relationships, and power distribution between cruise companies and TAs using a triangulation method via a tourism supply chain model. Principal–agent (P-A) theory was taken as the framework to describe various parties’ relationships and roles. Several TA business models were identified, including group blocks (i.e., guaranteed and nonguaranteed) and charter cruises (i.e., retail for resale and corporate; meetings, incentives, conferences, and exhibitions). Results show an imbalance of power between parties due to unique business practices and customer preferences in Mainland China. Principals (i.e., cruise companies) were found to rely excessively on agents (i.e., TAs) to create demand, with the growing number of cruise lines leading agents to overpower principals. The alliance among TAs further affected the principal–agent relationship. A refined tourism supply chain model tailored to the cruise industry is thus proposed herein; this cruise supply chain model simplifies the complicated business network relationships between cruise companies and TAs in China.

Risks’ cross-contagion between shadow banks based on complex network theory: evidence from China

PurposeThe purpose of this paper is to analyze the network path and internal mechanism of risks’ cross-contagion between shadow banks and design strategies for preventing risk infection between shadow banks.Design/methodology/approachUsing the complex network theory, analyze the mechanism of risks’ cross-contagion between shadow banks from the credit network, business relationship network (BRN) and social network (SN); the cross-contagion mechanism using the structural equation model on the basis of China’s shadow banks is tested; based on the three risk infection paths, the prevention and control strategies for risk infection using the mathematical models of epidemic diseases are designed.FindingsThere are three network risk contagion paths between shadow banks. One, the credit network, risks are infected crossly mainly through debt and equity relationships; two, the BRN, risks are infected crossly mainly through business network and macro policy transmission; three, investor SN, risks are infected crossly mainly through individual SN and fractal relationships. The following three strategies for preventing risk’s cross-contagion between shadow banks: one, the in advance preventing strategy is more effective than the ex post control strategy; two, increasing the risk management coefficient; three, reducing the number of risk-infected submarkets.Originality/valueThe research of this study, especially the strategies for preventing the risks’ cross-contagion, could provide theoretical and practical guidance for regulatory authorities in formulating risk supervision measures.

Faraway, Not So Close: The Conditions That Hindered Knowledge Sharing and Open Innovation in an Online Business Social Network

This article explains the main mechanisms influencing the knowledge collaboration dynamics occurring across an online business community. Prior research study had conceived firms as autonomous entities competing against each other to reach the competitive advantage. Nonetheless, online business social networks (BSNs) can be seen as networks of organizations that interact within digital structures, providing an optimal locus to foster external knowledge flows, enabling participants to share knowledge across organizational boundaries, and eventually leading to open innovation outcomes. We analyze how virtual networks of business relationships influence the form of knowledge collaboration firms can be engaged in. We analyze the entire three-year collaborative history of a BSN. After a promising launch of the BSN, it declined and failed. By analyzing front- and backstage combined with organizational and technological features of the online business community, we identify and discuss five categories of mechanisms affecting the knowledge collaboration over time and reducing the firms’ uncertainty in exchanging information: first, orchestrators’ skills and competencies in running the online platform; second, internal firm capabilities allocating proper organizational resources; third, usability of the digital platform; four, interconnections between frontstage and backstage combined with technological and organizational features; and fifth, perceived virtual copresence.

Managing business and social network relationships in Russia: The role of relational capabilities, institutional support and dysfunctional competition

The current study provides empirical insight into the nature of creating relational rents when managing business relationships in the context of the emerging Russian economy. Addressing both formal and social business network relationships, the study aims to understand the role of a systematic and purposeful approach to building and managing business relationships in order to generate superior relational advantage. The study explores the effects on both subjectively and objectively measured relational rents. Additionally, the role of institutional context in both shaping relationships and obtaining relational rents is considered through the inclusion of dysfunctional competition and institutional support. The results of a survey on a sample of 148 business-to-business firms demonstrate the leading role of the business relationship portfolio in generating relational rents, as well as the supporting role of relational capabilities in building this relationship portfolio. These effects are significantly affected by institutional moderators, demonstrating multidirectional effects on the mechanisms behind building relationships and obtaining the associated relational advantage.

The Impact Of Power And Relationship Quality On Value Creation and Appropriation in Buyer–Supplier Relationships

Abstract Business relationships provide the means to create and appropriate superior value in business markets. However, despite the proliferation of research on the phenomenon, many questions remain unaddressed. Previous work focused almost exclusively on value after its creation and its sharing between the two exchange partners. Consequently, the appropriation of value as well as its interaction with value creation remains relatively unknown. Similarly, a few studies have examined the role of relational variables and power asymmetry in customer–supplier exchange relationships. To fill this gap, this study aims to examine the influence of relationship quality and power on value creation and appropriation and ultimately, on satisfaction and relationship continuity. Based on the theory of social exchange, this study proposes a conceptual model, which positions value creation and appropriation as central variables in the nomological network of business relationships. A quantitative study of 174 suppliers was carried out in order to compare the theoretical model with the empirical reality. The results obtained show that the relationship quality promotes greater value creation and appropriation in ongoing business relationships. As for power, its influence differs depending on how it is exercised within the relationship. Moreover, the appropriation of value remains the main driver of partner satisfaction, a sine qua non condition for the continuity of the relationship. This present research contributes to a better understanding of value creation-appropriation in ongoing business relationships. By strategically managing their customer–supplier relationships, managers can create and capture greater value and gain a competitive advantage.

The impact of power and relationship quality on value creation and appropriation in buyer-supplier relationships: the case of Moroccan companies

Purpose- This study aims to examine the influence of relationship quality and power on value creation and appropriation and ultimately, on satisfaction and relationship continuity. Based on the theory of social exchange, this study proposes a conceptual model, which positions value creation and appropriation as central variables in the nomological network of business relationships. Methodology- A quantitative study of 174 suppliers was carried out in order to compare the theoretical model with the empirical reality. Findings- The results obtained show that the relationship quality promotes greater value creation and appropriation in ongoing business relationships. As for power, its influence differs depending on how it is exercised within the relationship. Moreover, the appropriation of value remains the main driver of partner satisfaction, a sine qua non condition for the continuity of the relationship. Conclusion- This research contributes to a better understanding of value creation-appropriation in ongoing business relationships. By strategically managing their customer-supplier relationships, managers can create and capture greater value and gain a competitive advantage.

PODER, CENTRALIDADE E EMBEDDEDNESS COMO MECANISMOS PARA AUMENTAR A EFICIÊNCIA DE CAPTURA DO CONHECIMENTO DAS SUBSIDIÁRIAS EM SUAS REDES LOCAIS

A literatura de Negócios Internacionais enfatiza as relações interorganizacionais em redes de negócios, baseadas no embeddedness, como mecanismo para uma empresa multinacional melhorar seu desempenho. Entretanto, uma análise aprofundada da literatura mostra que o embeddedness por si só é insuficiente para que as subsidiárias obtenham vantagem competitiva local. Assim, buscando compreender melhor esta questão, foi realizada uma revisão sistemática da literatura com 45 artigos que abordam três constructos centrais em redes: embeddedness, poder e centralidade. A análise sugere uma lacuna nos estudos sobre poder e centralidade da subsidiária em sua rede externa. Portanto, por meio de um modelo conceitual, mas com aplicação gerencial, este artigo sugere que a subsidiária utilize de forma integrada embeddedness, poder e centralidade de modo a otimizar o acesso aos recursos tangíveis e intangíveis e reduzir os conflitos da rede local necessários para obter vantagem competitiva específica (SSA) e global (FSA).

From intermediary relationship to multiple relationships – option of developing the network position in the internationalisation process. An exploratory study of a Polish food company

Traditionally, the internationalisation process of a company has been analysed from the perspective of entering foreign markets. Currently, it is often analysed within the so-called network models, which take into account the importance of business relationships. The process of entry is not understood as a process of entering a foreign market, but a process of entering a network of business relationships on a foreign market. Insidership in such networks is necessary for successful internationalisation. Being an insider in the network means having a certain network position.
 The aim of the paper is to identify based on a pilot study the possible way of building network position on foreign markets by Polish food companies. The paper will present a picture of one company, focusing on its operations on German market since the entry in 2006. The researched company started building network position on foreign markets by developing a strong relationship with one actor, who acted as key intermediary with the market. As a result of major change in the business environment, the company decided to revise the strategy and develop a number of weaker links with various actors. The paper presents a number of questions which raise from a pilot study and require further investigation.

No manager is an island: culture in sensemaking of business networking

PurposeThis paper aims to investigate the role of culture in managerial sensemaking and conceptualization of business networking.Design/methodology/approachThe authors apply qualitative methodology through the sensemaking approach on three Finnish and three Russian managers in mutual buyer–supplier business relationship dyads.FindingsThe results imply that the cultural background of the manager determines his perception of the level at which business networking occurs. Finnish managers conceptualize business networking as an organizational strategy, whereas their Russian counterparts conceptualize the phenomenon squarely at the individual level.Research limitations/implicationsThe authors suggest that the underlying cause of the differences in the conceptualization of networking may be that Finnish business networking relies more on concepts derived from Western European business culture, whereas Russian networking relies more on the traditional culture. Consequently, they suggest that the concept of business networking in extant research may suffer from ethnocentricity. Limitations of the study include the limited extent of generalizations from its qualitative nature.Practical implicationsThe results imply that business network relationships should be managed differently in different cultures, and that depending on the cultural background of the business partner, managing both the organizational and the individual levels of business networking is needed.Originality/valueThe study contributes to limited literature on culture and the role of individuals in managerial conceptualization of business networking. This is one of the rare studies to illustrate differences through individual sensemaking on both sides of the relationship dyad and account for both Western European and Russian market environments.

Research on MIL Search Method for P2P Borrowing Loss Clients Based on Social Network Perspective

This paper proposes a multi-indicator search study based on the social network perspective for borrowing and lending customers. When studying P2P lending and losing customers, according to the division of interpersonal relationship in sociology and the extent to which the client can be debited in reality, it is divided into three kinds of relationship networks: blood relationship network, geo-relationship network and business relationship network, assisting to combine the two-mode subordinate network of the lost customers, and focusing on analyzing its scale, density and other indicators, and hope to find the target lost customers. Key figures in the social network of interpersonal relationships, message communicators, behavioral influencers, etc., to achieve the search for lending customers after their sudden loss. For the first time, this paper applies the social network theory to the search for borrowed and lost customers and proposes the MIL algorithm. It proposes a new idea for the hiddenness of the loan client’s loss of connection, and accelerates the governance of the ill-fated phenomenon of loan and loan loss effectiveness. This paper also analyzes the case and proposes relevant suggestions in connection with a loss event in Guangzhou.

Wait-and-see strategy: Risk management in the internationalization process model

We interpret the wait-and-see strategy as a decision to maintain unchanged the firm’s commitments to its business network relationships. To explain why firms choose a wait-and-see strategy, we propose an extension to the relationship commitment decisions aspect of the Uppsala internationalization process (IP) Model. With this development, we explain that the wait-and-see strategy can result from a change in the levels of risk assumed in the firm and not only from the decision to adjust the risk that the firm encounters by changing commitments to its network relationships. This development enhances the ability of the IP model to accommodate contextual influences on relationship commitment decisions and to explain a more complete suite of internationalization trajectories. Extending the theoretical core of the IP model further confirms its efficacy, its application to international strategy, and its potential to be developed as a general process model of strategic change.

Knowledge sharing and collaborative relationships in business ecosystems and networks

PurposeThe sharing of knowledge between partners in collaborative relationships is widely accepted to be fundamental to supporting strategic decision making, particularly in relation to innovation management and business sustainability. The purpose of this paper is to focus on how the structure of collaborative relationships in business networks may determine successful knowledge sharing and thus improve decision making and business performance.Design/methodology/approachExpert interviews were conducted with participants operating in networks and business ecosystem in four different sectors in Italy and Germany, exploring the process of knowledge sharing, organisational learning and decision making within collaborative relationships. A qualitative textual analysis was used to analyse the experts’ responses.FindingsThe research found that an organisation’s network position and the network structure, as well as the governance and richness of the business ecosystem in which it operates, influence its ability to share knowledge, to innovate and therefore to compete sustainably.Research limitations/implicationsThe research demonstrates that innovative strategic decision making, based on access to appropriate knowledge, occurs within the context of social and business network relations operating within a broader more diverse business ecosystem. Closer dyadic or small working group ties best facilitate trust and sharing of the most valuable knowledge. Appropriate participation in and management of such structures is therefore essential to support knowledge-based decision making, and critical to sustained competitive advantage.Originality/valueThe research focusses on how interfirm relationships are established and maintained, how firms establish trust and facilitate knowledge sharing forming the basis of organisational learning.

The dyadic structure of exchange partners' governing-agency social capital and opportunism in buyer–supplier relationships

Extant literature on opportunism examines its antecedents in dyadic relationships in business networks. With firms also developing relationships with government agencies, these connections can influence firms' propensity for opportunism in business exchanges. This study investigates how the governing-agency social capital on both sides of the buyer–supplier relationship affects firms' opportunism tendency toward their counterparts. In particular, we divide the governing-agency social capital of both parties into two dimensions: the asymmetry of governing-agency social capital and joint governing-agency social capital. We postulate that both the asymmetry of governing-agency social capital and joint governing-agency social capital promote the focal firm's propensity for opportunism through dyadic power and network power, respectively. Moreover, we propose that both dimensions interact to magnify each other's impact on the focal firm's propensity for opportunism. We test the hypotheses using 322 matched data of buyer–supplier dyads in China. Empirical results provide support for the research hypotheses.

CONCEPTS OF INNOVATION IN TECHNOLOGY TRANSFER ON THE EXAMPLE OF SELECTED COUNTRIES

The aim of the study was to analyse the existing concept of technology transfer and the experience of selected countries. The starting point was outlining the essence of the strategic paradigm of the innovation and technology transfer theory. The concept of the subject-territorial origin of innovation was also interpreted, emphasizing the fact that small companies, linked to one another in a network of business relationships, form structures that bind them to the environment in which they operate, This translates into effectiveness of the processes of technology transfer. The paper also analyses the dynamic and interactive models of technology transfer in selected countries with a long tradition of noticeable effects in terms of transfers of innovative technology solutions.

Competing on the edge: Implications of network position for internationalizing small- and medium-sized enterprises

Three generic competitive strategies attributed to internationalizing SMEs of targeting niches, differentiating products and leveraging networks fail to adequately explain how SMEs win customers in other countries against both large and small competitors. This study distinguishes competitive strategy (how firms compete) from competitive advantage, and from competitive engagements where firms deploy their competitive advantages to win customers within business network relationships. By abductively reasoning from the competitive engagements entered into by the internationalizing SMEs from the Fleet Management Systems industry segment in New Zealand, we show that these firms often compete with foreign rivals by using their position on the edge of a business network to leverage information asymmetries across structural holes. We contribute by integrating this conception of internationalizing SME competitive strategy with the business network foundations of the Uppsala internationalization process model.

The carbon footprint of business travel in the knowledge-intensive service sector

We explore the travel needs and patterns, and the corresponding carbon footprint, of small service organizations during different phases of knowledge-intensive business processes, and compare the results with the priorities given to travel-related goals by staff. We apply a combination of focus group data, mobile positioning, and individual follow-up interviews as study methods. The need for physical travel is determined by a combination of the perceived potential for knowledge creation and transfer offered by each trip, the strength of interpersonal relationships in business networks, and the significance of the travel goal in terms of economic sustainability. The priorities given to travel goals reflect the environmental load of business travel only in domestic contexts, where executing core business processes accounted for the highest carbon footprint. We propose the ways in which the management of business interactions could take into account sociotechnical environment and social recognition of low-carbon communication and travel modes.

The Internationalization Process Model Revisited: An Agenda for Future Research

We interpret the wait-and-see strategy as a decision to maintain unchanged the firm’s commitments to its business network relationships. To explain why firms choose a wait-and-see strategy, we propose an extension to the relationship commitment decisions aspect of the Uppsala internationalization process (IP) Model. With this development, we explain that the wait-and-see strategy can result from a change in the levels of risk assumed in the firm and not only from the decision to adjust the risk that the firm encounters by changing commitments to its network relationships. This development enhances the ability of the IP model to accommodate contextual influences on relationship commitment decisions and to explain a more complete suite of internationalization trajectories. Extending the theoretical core of the IP model further confirms its efficacy, its application to international strategy, and its potential to be developed as a general process model of strategic change.

A Network Perspective on Negotiation: What Is New and Why It Matters

The resources that individual negotiators need to solve their problems are not available in a single, concentrated form, and they are certainly not available only within an isolated dyad itself. Instead, the necessary resources are widely dispersed among many actors within networks of business relationships. The best deal is unlikely to be fixed or predetermined, but is rather the outcome of long and time‐consuming negotiations that will then affect further negotiations. In this article, I describe a network perspective on negotiation that considers the relevance and impact of three phenomena that I call (1) vast connectivity, (2) multiple constitutions, and (3) ongoing consent. I further illustrate the applicability of these three factors using examples of real‐life negotiations.

Dynamics of internationalisation of the hotel industry: the case of Spain

Purpose – This paper aims provides an empirical analysis of the development of the internationalisation process in the Spanish hotel industry, which has experienced major changes during the past decade. The degree of internationalisation between 2000 and 2010 is used as a proxy variable with the aim of mapping the development of international strategies. Design/methodology/approach – A longitudinal dataset measuring the internationalisation of Spanish hotel chains is used. Cluster analysis identifies the different behaviour of groups of firms during the analysed period. Findings – Two different clusters are detected, which can be attributed to different internationalisation strategies over time. Small and medium (SME) hotel companies seem to follow a different path of development than more established multinational companies. Over time, the entire group tends to be more compact, whereas the distance between the clusters is shown to diverge in final years. The groups’ composition suggests that business-networking relationships can be a strategy of particular importance for SMEs pursuing international expansion. Practical implications – This paper develops a better understanding of the changes of the internationalisation patterns of Spanish hotel chains. Findings could address managers in strategic decisions about how to improve competitive position. In particular, they recommend accounting for size, international experience and business network relationships when expanded abroad. Originality/value – This paper introduces a new approach based on studying clusters of Spanish hotels according to their internationalisation strategies over the time. Further analysis revealed the role of business network on internationalisation patterns.