Malena Ingemansson Havenvid

Managing renewal in fragmented business networks

Purpose – The authors argue that the construction industry is characterised by a fragmented business context with three main features: the project-based character, the strong focus on price in all parts of the supply chain along with the great importance of suppliers. This fragmentation has been identified as problematic for the industry’s ability to innovate and engage in renewal. The purpose of this paper is to investigate this further by focusing on how construction companies manage renewal in a fragmented business context. Design/methodology/approach – The authors use an in-depth case study of a housing project in Sweden to discuss how firms manage renewal in a fragmented type of business environment. The authors identify the challenge of achieving renewal in an individual construction company as an issue of handling intra- and inter-organisational issues in both intra- and inter-project environments. Findings – The case study indicates that renewal can be partly handled and managed through long-term ...

Investigating strategy tools from an interactive perspective

Purpose The purpose of this paper is to investigate how the strategic management concept of “strategy tools” (STs) can be reinterpreted from an industrial network perspective. It considers how STs are used to influence the substance of relationships and how firms engage in strategic action by using such tools. Design/methodology/approach Using case study research involving three focal firms, the paper scrutinizes use of selected STs to examine how they are used to systematically relate to others and create benefits and affect development paths in business relationships. Findings STs can be viewed as an integrated part of a networking pattern of mobilizing resources, linking activities and relating actors. Seen in this manner, use of STs can be interaction-facilitating or interaction-creating. Research limitations/implications In an interactive approach, STs must be seen in relation to others as they are used in strategic (co-)action to engage and involve others. In this view, tools are strategic when used to affect the long-term development of important business relationships. Practical implications Practitioners should acknowledge that the use of a ST to handle counterparts is emerging, and valuable only in relation to specific others. Because the value of STs is unknowable until it is revealed how they can affect the substance of a specific relationship, there is no best-practice or one-size-fits-all approach. Originality/value This paper illuminates the phenomenon of “strategy tools” by considering it from both sides of the business exchange interface.

Renewal in construction projects: tracing effects of client requirements

Several studies identify clients as important drivers of innovation in the construction industry. How clients contribute to innovation is however less investigated. In two case studies of health care construction projects, we investigate how client requirements create renewal in the form of intra- as well as inter-project effects. Using an inter-organizational framework of actors, resources and activities (the ARA model), it is possible to identify a variation of effects. The paper concludes that both client requirements and their associated renewal effects are results of interaction in time as well as space. Renewal effects crossing individual projects are dependent on relationships among two or more actors that continue to interact in subsequent projects. In addition, these effects relate to several dimensions of interaction and include how actors relate in new ways, how resources are combined and how activities are organized. Thus, by adopting an interactive perspective, it is possible to reveal how construction clients can contribute to renewal such as innovation and learning, directly and indirectly, within and across projects. Finally, we suggest that managers need to consider the role of long-term business relationships in achieving increased renewal in construction.

Competition versus interaction as a way to promote innovation in the construction industry

Purpose – The purpose of this paper is to discuss the link between economic thinking and public policy, two ways of promoting innovation are reviewed – competition and interaction. The competition perspective is illustrated by Schumpeterian-inspired growth economics, while the role of inter-organisational interaction is shown by the industrial network theory. Design/methodology/approach – The construction sector is used as an example of a politically critiqued industry regarding low innovativeness and productivity, through which the two different views are outlined and compared. The main differences of these two perspectives are outlined as: the organisational unit of analysis (the firm vs the relationship and network), how knowledge is created and spread (exogenous vs endogenous to economic exchange), and the value-creation processes (internal vs external focus). Findings – The two views are essential different and therefore should cancel each other out if implemented simultaneously. Consequently, a cons...

New Business Development in Business Networks

Abstract This chapter explores the issue of an outsider entering an existing business network in an interactive, interdependent and interconnected business world. Developing the new venture appears a ‘mission impossible’ as the new venture has no relationship in the relevant network or a tenuous one at best. The critical issue and major difficulty for the new company are to make established business actors perceive that there are good reasons to admit the new venture into the existing business network. The fate of the new venture, its acceptance by at least some other business actors, will largely depend on how the incumbents perceive the new company to affect their existing relational assets which result from past investments. In attempting to become a new node of a business relationship, the ‘management’ of the new venture has to address two issues. First, it has to find some actors interested in relating to the new venture and to engage them in developing the initial business relationships. Second, the new venture has to manage the networking that is combining the initial relationships with each other. The authors identify and discuss six spaces for action for new business ventures related to these two challenges.

Economic deals in the construction industry : Implications for socio-material interaction and monetary processes

Purpose The purpose of this paper is to investigate the relationship between social-material interaction and the monetary aspects of business relationships in the construction industry. The authors term the formal financial agreements necessary for such activities “deals”, and this paper seeks to open a research avenue to further investigate the multifaceted interaction processes among business actors. The construction industry is a suitable empirical setting for this purpose; its project-based character and societal position of linking business with the construction of essential community infrastructure imply that different types of money-handling activities need to be managed continuously with both short-term and long-term effects taken into account. Design/methodology/approach To investigate the deals, i.e., the interface between socio-material interaction and the money-handling processes in the construction industry, as well as studying the potential interrelatedness of deals, the authors performed a case study involving three interrelated housing projects in Uppsala, Sweden. Findings The study shows that deals do not only have an intricate relationship to the social-material interaction processes among construction actors, but they also become interrelated in specific ways to form “deal structures” as actors engage in different business relationships over time. This means, for instance, that a single deal can enable several other deals, and involved actors have different abilities in performing deals. Hence, most deals are part of a “broader” interaction pattern of social and material resources spanning the organizational borders of individual companies. Originality/value Within the industrial marketing and purchasing, the socio-material interaction among actors has been well studied, but less attention has been paid to the monetary dimension and its relationship to the socio-material interaction processes. In particular, this study provides an understanding of monetary agreements in the construction industry.

The role of interaction for corporate sustainability

Purpose Most scholars acknowledge the role of firm-stakeholder relationship for enabling corporate sustainability (CS), but existing literature tends to apply a superficial understanding of interaction. Thus, the purpose of this paper is to advance knowledge by challenging classical stakeholder theory with fundamental insights from the IMP perspective, which in turn leads to a deeper conceptualization of interactive CS. Design/methodology/approach A typology framework is developed through an abductive research design grounded in the concepts of actors, resources, and activities. The authors illustrate the potential of the framework through a longitudinal case study. The empirical case revolves around an initiative for recycling of plastic material in a partly beforehand established supply chain, and the study reveals three main findings. Findings First, recycling solutions can result in major technological challenges. For example, using recycled material can jeopardize industrial quality standards. Second, third-party stakeholders represent critical knowledge and competence that can remedy technological challenges. Finally, R&D projects are important means for developing firm-stakeholder relationships. Research limitations/implications The paper introduces IMP concepts to the CS debate, which can illuminate the emerging literature on tensions and paradoxes related to CS phenomena. Further research is needed on the role of non-business actors as capacity generators for social and environmental change in traditional business networks. Practical implications The proposed framework can be used to analyze why some stakeholders (individuals and groups) turn into contributing actors in inter-organizational relationships, while others remain latent. Originality/value This paper illustrates the usefulness of actor bonds, resource ties and activity links as explanatory concepts. Moreover, developed relationships in terms of collaboration and networks represent a capacity to change, which is overlooked in current CS debates.

Creating relationship continuity across projects in the construction industry: Deliberate, emergent and deliberately emergent strategies

Purpose The purpose of this paper is to investigate the relationship continuity across projects among actors in the construction industry, and to discuss why and how such continuity takes place. Design/methodology/approach The authors draw on the results from four in-depth case studies illustrating different strategies for pursuing relationship continuity. The results are analysed and discussed in light of the oft-mentioned strategies suggested by Mintzberg (1987): emergent, deliberate and deliberately emergent strategies. Furthermore, the ARA-model is used to discuss why the relationship continuity strategies are pursued, and which factors might enable and constrain the relationship continuity. Findings The main findings are twofold. First, the authors found that the strategy applied for pursuing relationship continuity may, in one-time period, contain one type of strategy or a mix of strategy types. Second, the type of strategy may evolve over time, from one type of strategy being more pronounced in one period, to other strategies being more pronounced in later periods. The strategies applied by construction firms and their counterparts can thus contain elements of emergent, deliberate and deliberately emergent strategies, in varying degrees over time. It is also shown that the strategies of the involved actors co-evolve as a result of interaction. Also, the main reasons for pursuing continuity appear to lie in the re-use and development of important resources and activities across projects to create efficiency and the possibility to develop mutual orientation, commitment and trust over time, and thus reduce uncertainty. Research limitations/implications Further empirical studies are needed to support the findings. For managers, the main implication is that relationship continuity can arise as part of an emerging interaction pattern between firms or as part of a planned strategy, but that elements of both might be needed to sustain it. Originality/value The authors combine Mintzberg’s strategy concepts with the ARA-model to bring new light to the widely debated issue of discontinuity and fragmentation in the construction industry.

6 Starting Up from Science: The Case of a University-Organised Commercialisation Project

Today, the conventional view of the university is not just that of an independent research and educational institution but also as a direct source of new business ventures and innovation (e.g., Meyer, 2003; Rider, 2009). Although universities have historically been expected to contribute to society in various ways (Widmalm, 2008), the contemporary role of the university is to have a more or less direct impact on economic growth by providing ‘productified’ research results ready to become embedded in a business setting (Ingemansson, 2010). The role of creating an indirect economic impact, by producing new knowledge and educated people that eventually create benefits for society, is now widely regarded as outdated and a more ‘networked’ view of how universities are supposed to contribute is taking over. This point of view is illustrated by the following quotation from the Lisbon Strategy, which was created as a guide for the European Union (EU) to develop into a ‘knowledge-based economy’: ‘In the past, universities would develop new knowledge and, when it was mature, it might be picked up by business for commercial application. Far too much knowledge remains locked up in universities and the development of new knowledge takes too little account of the needs of business. This innovation model is out of date. Today, innovation is built around knowledge networks which, by sharing, developing and accumulating knowledge, facilitate a rapid development of products and services out of new ideas.’ (EU Communication from the Commission to the European Council, 2006, pp. 4–5)

Researching the Interactive Business Landscape

Abstract In this chapter, the authors focus on three challenges related to the attributes of the interactive business world and on the related implications for methodology. The first challenge is how to capture the continuity of business relationships, which implies: (1) Taking a two-sided (bilateral) view when researching business relationships, (2) collecting data on content and consequences of business relationships and (3) developing a research design to capture development over time. The second challenge is how to set boundaries and trace network-like structures, which implies: (1) identifying the relevant relationships that appear to affect each other in a network-like manner, (2) capturing interdependences among relationships (how they affect each other) and (3) researching forces generating network dynamics (how these interdependencies are established and change over time). The third challenge is how to observe and research interaction processes in business relationships, which leave little traces and are difficult to record. This requires the attention on (1) the choice of point(s) of observation, (2) the handling of the subjective understanding of interaction and (3) researching how interaction unfolds. The authors conclude with a discussion on the complexity of handling these challenges, and related methodological choices, when ‘research objects’ are interconnected.