Download 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
A
O Nodes and threads
Relationship

B
Nodes = Business Units
 Threads = Relationships
BUSINESS NETWORKS
BUSINESS RELATIONSHIP
O Uniqueness
O Investment
O Influence inside the
company
BUSINESS NETWORKS
BUSINESS RELATIONSHIP
Supplier
Customer
A
B
C
Supplier
B
C
Customer
A
Supplier
-
Distributor
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 PARADOX
Opportunities and limitations
in a networks
Own
resources
Network
Network
position
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.
O
 Already established network positions restrict the company’s ability to
react new concepts/innovations.
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 PARADOX
Influencing and being influenced
in a network
Outcomes of strategies and
actions
Company
Relationships
Outcomes of those relationships and
what happened in them
MANAGERIAL IMPLICATIONS OF
THE SECOND PARADOX
O Strategizing
O Extend of effects on
network
O Commitment
O Individual managers
THIRD PARADOX
Controlling and being out of control
in networks
O 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
B2B
Partnerships
Network
Share of
ideas
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