Aino Halinen

Business Relationships and Networks:: Managerial Challenge of Network Era

Abstract The competitive environment of firms is undergoing a fundamental change. Traditional markets are being rapidly replaced by networks. This poses major managerial challenges for industrial and high technology companies. From a conceptual point of view, this means that we have to look beyond ordinary customer and supplier relationships into intricate webs of firms forming R&D networks, deep supplier networks, and competitive coalitions. This introductory article of the special issue of IMM focuses on the management capabilities required in network environments. We propose a network management framework that is used for discussing the current managerial implications of the emerging industrial network theory influenced heavily by the Europe originated IMP Group research. The framework also is used for positioning and describing the articles of this special issue. We conclude by presenting a brief synthesis of the dualistic nature of network management and a research agenda.

From Dyadic Change to Changing Business Networks: An Analytical Framework

This paper investigates the dynamics of business networks. We distinguish between confined dyadic change and network change and show how change itself may be incremental or radical, using the punctuated equilibrium model of change. The concept of the critical event is introduced to highlight radical change. We propose an analytical framework where the ideas of mechanism, nature and forces of change are integrated. Two circles of network change (incremental and radical) are presented and transfers from one circle to the other are discussed. We believe this conceptual elaboration may have significant implications for future network dynamic research

Relationship Marketing Theory: Its Roots and Direction

This paper participates in the latest discussion on theory formation in the marketing discipline. We argue that some of the novelty and generality claims in current relationship-marketing (RM) propositions are inflated. On the basis of a conceptual analysis of the disciplinary roots of RM thinking, we argue that RM does not form a general theory of marketing, and that actually two types of relationship theory exist: Market-based, more consumer-oriented RM, and Network-based, more interorganisationally-oriented RM. The fundamental differences between these two types of theory are identified and discussed. Theoretical conclusions and managerial challenges originating from the dual nature of relationship marketing conclude the paper.

A process theory of relationship ending

This research is about the ending of business relationships: what that is, why it happens, and how an extant relationship dissolves. Ending of buyer‐seller relationships has very recently attracted increased research attention. This article adds to the existing knowledge by developing a process model to understand, in particular, how dissolution advances in a professional service context. The model aims to attend the major shortcomings of existing research and distinguishes three conceptual categories: the type of relationship and its ending, the factors that influence the process, and the ending process per se. It is concluded that the ending process is always both temporally and contextually embedded and to a significant degree actor‐driven; a picture of idiosyncrasy rather than deterministic development. The article ends by discussing managerial implications and making suggestions for future research.

Research on Ending Exchange Relationships: A Categorization, Assessment and Outlook

This paper reviews and assesses previous research concerning the ending of exchange relationships. In recent years, the different aspects of ending, for instance exiting a relationship, switching relationships and the dissolution or termination of a relationship, have received increasing attention from researchers. Both the volume of published articles and the number of emerging theoretical approaches in the area have been growing. We welcome this development and wish to take part in it by providing an analytical overview of the state of this research. In a strongly evolving research area such a review is particularly needed in order to disseminate ideas across theoretical boundaries and to guide theory development. With regard to the 48 published articles on relationship ending, we will examine five major issues: the focus of research, its disciplinary background, terminology used, methodological approach and key findings. Avenues for future research are suggested on the basis of the analysis.

Customer Knowledge Management Competence: Towards a Theoretical Framework

Customer knowledge has been increasingly recognized as a key strategic resource in any companys success. Recent studies conducted in the fields of Knowledge Management and Customer Relationship Management have proposed that the two approaches can have great synergies. In this paper, our purpose is to provide an understanding of Customer Knowledge Management (CKM) as an integrated management approach and competence it requires. We describe CKM as an ongoing process of generating, disseminating and using customer knowledge within an organization and between an organization and its customers. In addition, we propose a tentative theoretical framework of CKM competence, i.e., the ability to integrate customer knowledge into customer relationship management processes.

Customer participation and value creation: a systematic review and research implications

Purpose – Customer participation in the creation of offerings has become a key focus in marketing literature. This paper synthesizes extant research on the topic to enhance understanding of the conceptualization and value outcomes of customer participation in the creation of offerings.Design/methodology/approach – The study is based on an extensive, systematic literature review covering 163 articles on customer participation published over the last four decades. Selected publications were analyzed according to the topics studied, study context, research approach, and findings.Findings – The review demonstrates how the conceptualization of customer participation has evolved in terms of the nature and range of customer contributions, their temporal scope, and the outcomes considered. It also synthesizes the hypothesized and empirically scrutinized value outcomes of customer participation for both sellers and customers.Research limitations/implications – The review reveals important gaps in the existing know...

Position and role-conceptualizing dynamics in business networks

The authors propose a deeper and intensified study of dynamics in business networks. They argue that although changeability is often claimed to be an important feature of networks, this characteristic has been somewhat disregarded in research. The authors, addressing in particular the industrial network research, suggest a more elaborate framework for a better understanding of business dynamics as a social process, containing both a stability and a change dimension. Inspired by role theory they introduce the position concept as the stability dimension, and the role concept as the change dimension. In this way, the dynamic nature of the network structure can be elucidated more explicitly. The authors argue that the dynamics in business networks can be further explored by using their suggested position-and-role framework, which is illustrated in two cases, one from the food-distribution industry and one from advertising.

Customer knowledge transfer and key account management in professional service organizations

Purpose – Effective customer‐specific knowledge transfer is the cornerstone of customer value creation in professional service organizations. In order to formulate a coherent service offering across different expertise areas, it is crucial to share customer‐specific knowledge between professionals, business functions and units. The purpose of this study is to offer insights into the role of key account management (KAM) systems in facilitating this process.Design/methodology/approach – The work is based on an explorative case study in which the implementation of the KAM system in two consulting and training companies was investigated. Comparison of the two cases in terms of KAM design and success in knowledge transfer enabled conclusions to be drawn about the role of KAM as a knowledge carrier and a “linking pin” in a loosely coupled organization.Findings – Organizational fragmentation and insufficient communication channels among experts and subgroups of professional organizations cause problems in relati...

Accessing resources for service innovation – the critical role of network relationships

Purpose – This paper aims to explore how companies access resources through network relationships when developing service innovations. The paper identifies the types of resource that companies seek from other actors and examines the nature of relationships and resource access strategies that can be applied to access each type of resource. Design/methodology/approach – A longitudinal, multi-case study is conducted in the field of technical business-to-business (b-to-b) services. An abductive research strategy is applied to create a new theoretical understanding of resource access. Findings – Companies seek a range of resources through different types of network relationships for service innovation. Four types of resource access strategies were identified: absorption, acquisition, sharing, and co-creation. The findings show how easily transferable resources can be accessed through weak relationships and low-intensity collaboration. Access to resources that are difficult to transfer, instead, necessitates st...