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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. A. Nodes and threads Nodes = Business Units Threads = Relationships. Relationship. B.

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HOW SHOULD COMPANIES INTERACT IN BUSINESS NETWORKS?

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  1. HOW SHOULD COMPANIES INTERACT IN BUSINESS NETWORKS? Håkan Håkansson & David Ford (2002) Justine BILLET – Clara FAIVRE – Axel FENEAUX – Cassandre GERON – Marguerite GUIBOURG – Alix LUTON

  2. NETWORKS A • Nodes and threads • Nodes = Business Units • Threads = Relationships Relationship B

  3. BUSINESS NETWORKSBUSINESS RELATIONSHIP • Uniqueness • Investment • Influence inside the company

  4. BUSINESS NETWORKSBUSINESS RELATIONSHIP CONNECTIONS BETWEEN RELATIONSHIPS

  5. 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?

  6. 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.

  7. 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 ?

  8. 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

  9. MANAGERIAL IMPLICATIONS OF THE SECOND PARADOX • Strategizing • Commitment • Extend of effects on network • Individualmanagers

  10. 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

  11. MANAGERIAL IMPLICATIONS OF THE THIRD PARADOX • Need to manage IN the network • Need of analysis of resources • Complexity

  12. VIRAL MARKETING IN B2B NETWORKS

  13. FIRST PARADOX AND VIRAL MARKETING • Companies do not act, they interact • Interactions = base of viral marketing • Need to work on those interactions

  14. FIRST PARADOX AND VIRAL MARKETING

  15. SECOND PARADOX AND VIRAL MARKETING • Influence / be influenced • Interdependence / Co-dependence • Acting & Interacting • Conversations (Acting) • Connections (Interacting) • Results

  16. THIRD PARADOX AND VIRAL MARKETING • Risk of being over controlling  Potential partners will be aware of the situation thanks to the word-of-mouth.

  17. THIRD PARADOX AND VIRAL MARKETING • Risk of letting all the power to the other party of the network  Risk of attracting sharks.

  18. CONCLUSION

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