Lars Huemer

Strategizing in Industrial Networks

Abstract This paper provides an overview of the implications for strategizing offered by an industrial network perspective and a comparison of this view with strategic management thinking. We argue that it is crucial for a company to relate its activities to those of other firms in order to enhance its performance, and it is through the continuous combining and recombining of existing resources that new resource dimensions are identified and further developed within business relationships. From the standpoint of a single company, strategizing from an industrial network perspective implies that the heterogeneity of resources and interdependencies between activities across company boundaries, as well as the organized collaboration among the companies involved, must be considered simultaneously.

The effects of co‐location on marketing externalities in the salmon‐farming industry

Purpose – The purpose of this paper is to is focus on the role of geographic co‐location in the development of firm‐level marketing externalities.Design/methodology/approach – A mail survey and quantitative analysis were used to examine the effect of co‐location on externalities. Fast growing salmon farming clusters in Scotland and Chile were chosen where most environmental variables could be controlled. These clusters enjoy business to business marketing practices.Findings – Respondents indicated several externalities yielded by co‐location such as buying intermediate goods, enhanced reputation and joint participation in trade fairs. However, other externalities such as providing access to new technology and referrals to other firms were only slightly indicated useful as produced by co‐location.Practical implications – Practitioners in the salmon farming industry are suggested to pursue inter‐cluster cooperation.Originality/value – While previous findings are conflicting, the contribution of this study w...

Strategizing in horizons and verizons: Distinguishing between mediators and firms' mediating functions.

Purpose The study has two related objectives. At the firm level of analysis, the author proposes that a clearer distinction between firms’ mediating functions and mediators could enhance the understanding of business network strategizing. Whereas firms’ mediating functions have received attention in IMP research, less focus has been given to organizations whose core business is mediation. At the system level of analysis, the study complements the perception of a network horizon with that of a network verizon. Whereas the horizon is closely associated with work on firms’ mediating functions, the network verizon is of particular interest to mediators. The paper aims to discuss these issues. Design/methodology/approach This conceptual study combines IMP insights with strategic management theory. Findings The notion of a network horizon is important for business network strategizing, but also influences the perception of relevant network structures. These structures tend to be characterized by sequential interdependencies and a long-linked technology, often associated with physical products and production facilities. The notion of a network verizon highlights a network “depth” that has been unnoticed by previous work, which has focused on how narrow or wide a firm’s network horizon should be. The network horizon and the network verizon add strategizing options in terms of connecting key actors in the network to create additional value. Originality/value This paper concerns how IMP scholars understand boundaries and firms, and how perceptions of these influence business network strategizing. The study articulates a distinction between firms’ mediating functions and those organizations that fundamentally create value through mediating services. This distinction has system-level implications. In particular, the claim that the basis for a firm’s strategizing is its network horizon is discussed. The author proposes the notion of a “network Verizon,” providing a boundary perception of specific relevance to mediators. The network verizon portrays a network depth beyond both sequential tiers in a supply chain and links between different supply chains.