Virpi Havila

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

Learning in Networks

Abstract During the last decades, competence and knowledge have become increasingly focused as means for increasing the competitiveness of industrial companies. Organizational learning accordingly has become an important issue both in research and in managerial considerations. One important way to learn is through others. Companies have as one consequence devoted much interest into building special relationships with universities and other knowledge producers, such as lead users, to knit together special knowledge networks. However, the same interest has not been devoted to how the existing business relationships with customers or suppliers in general are taken care of from a learning perspective. In this article, we will present the results from a study of learning within business relationships formed around an ordinary construction project. One major conclusion is that the extent to which learning takes place seems to be highly related to the existence of connections between the relationships. The more each single relationship is part of a network the more the company in average seems to learn from it. The results can have managerial implications for both buying and selling companies.

Can You Buy a Business Relationship?: On The Importance of Customer and Supplier Relationships in Acquisitions

Mergers and acquisitions have become a popular strategy for gaining growth. Studies show, however, high failure rates for acquisitions. Earlier literature concentrates on the strategic or organizat ...

The principle of the conservation of business relationship energy: or many kinds of new beginnings

Abstract The relationship termination phase has received rather less attention in the literature than other aspects of relationship development. In this article we focus on the stage when the firms involved stop doing business with each other. We argue that relationship ending is problematic in that, even when trading stops, there still seems to exist a kind of “relationship energy” which continues on, especially in the social bonds that have been created. We propose a new principle of the “conservation of relationship energy” which states that it cannot be destroyed and that it can only be transformed and transferred to other relationships, manifesting itself in a variety of ways. “Relationship energy” provides opportunities for the same relationship to be reactivated at a later time, and helps or hinders the formation and continuation of other relationships as this energy travels with people to other organizations and contexts. The principle is illustrated using three case studies of relationships that have ended, drawn from the IMP2 database. The analysis provides new ways of analyzing the relationship termination phase as a more dynamic ongoing process and suggests new ways of evaluating relationship outcomes.

International Business-Relationship Triads

This paper addresses the question of whether the dyadic approach to international business relationships should, in some situations, be extended to a triadic one. In studies of business relationships the common view is that the relationship consists of two parties, one selling party and one buying party. However, in some, especially international business relationships an intermediary exists that has contact with both the selling party and the buying party, at the same time as the selling party and the buying party also have direct contact with each other, i.e. these relationships are triadic by nature. The purpose here is to investigate whether a triadic approach should be used in these types of situations. The empirical analysis is based on a subset of the database established within the IMP2‐project. The analysis of the data material was done using LISREL. Trust and commitment, two central concepts in studies within the field of business‐to‐business research, are used to investigate whether business‐relationship triads are different from business‐relationship dyads. The results indicate that this is very much the case.

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.

Spread of Change in Business Networks: An Empirical Study of Mergers and Acquisitions in the Graphic Industry

This paper investigates the spread of change in business networks with focus on critical events as triggers of radical change. The conceptual discussion is based on the analytical framework for change developed by Halinen, Salmi and Havila. This framework, compiling the mechanism, nature and forces of change in business networks, distinguishes between confined and connected change. It is suggested that mergers and acquisitions (M&As) may cause changes that spread in the business networks, and M&As are investigated as triggers of radical network change in particular. The paper includes an empirical analysis of M&As in the Nordic graphic industry.

Enhancing Research in Exchange Relationship Dissolution

Researchers in marketing have by tradition been interested in studying how to establish relationships to new customers and how to improve the existing ones. Until the mid-1990s, very little attention had been given to how, why, and when exchange relationships end, and what happens afterwards. Dissolution had only been mentioned in passing (see e.g. Ford, 1980; Dwyer, Schurr and Oh, 1987). From the mid-90s, exchange relationship dissolution started to attract more and more researchers (among the early studies are e.g. Edvardsson and Strandvik, 2000; Grønhaug, Henjesand and Koveland, 1999; Havila 1996; Holmlund and Strandvik, 1999; Perrien, Paradis and Banting, 1995; Roos, 1999; Stewart, 1998; Tähtinen and Halinen-Kaila, 1997). The research has been described as representing five research approaches; Relationship Marketing, Interaction and Network Approach, Nordic School of Services Marketing, Channel Research, and Consumer Buyer Behaviour (see Tähtinen and Halinen, 2002). Within these approaches, the main research focus has often been on the reasons for or antecedents of relationship dissolution/customer exit, whereas the process and the consequences of relationship dissolution have received less attention. In September 2000, the 1st Nordic Workshop on Relationship Dissolution, NoRD2000 was organised, with the aim to provide researchers within this field an opportunity to discuss the emerging knowledge base (see further in Havila, Holmlund-Rytkönen, Strandvik & Tähtinen, 2001). Two years later, when the 2nd Nordic Workshop on Relationship Dissolution, NoRD2002 took place, we realised that the number of researchers within this field had grown considerably. However, we also saw that we still knew very little about relationship dissolution. One way to develop further understanding of the phenomenon was to encourage researchers to publish research within this field, which is the background to this special issue. We would like to thank Prof. Kjell Grønhaug for this idea and also for his encouragement and help during the editing process.

Beyond Project Closure: Why Some Business Relationships Recur in Subsequent Projects

While a project design provides several managerial advantages within the project life cycle, there are numerous challenges regarding its long-term effects. The aim of this article is to increase our knowledge on the continuity aspect of the project form of organizing, and especially the recurrence of project-based business relationships in subsequent projects. Focusing on the role of network relationships in leveraging between projects, we investigate the reasons for relationship recurrence. Based on a longitudinal case study of three construction projects, our results show that in addition to terminated and dormant relationships after project closure there are recurring relationships, which, unlike the others, do not need reactivation.

From Business Remains to Reactivated Relationships

Over the years, research has covered many different aspects of business relationships; for example, there are streams investigating relationship initiation (e.g., Edvardsson et al. 2008), relationship development (e.g., Dwyer et al. 1987), critical episodes in relationships (e.g., Gidhagen 2002), relationship termination (e.g., Alajoutsijarvi et al. 2000), as well as network effects of relationships (e.g., Hakansson and Snehota 1995). However, there are few studies that focus on the time after a business relationship is terminated. A practical explanation may be the difficulty to study something ‘that is not,’ given, for instance, the reluctance to discuss any termination processes, or even problems of finding anyone with memories of the past. Another reason is of course that there may be considered little rationale in analysing something that is no more. However, this no-longer-existing business relationship may indeed be turned into ‘something’ again—once terminated, and later reactivated. In such a situation, the former relationship, its termination and also the time between termination and reactivation are all important aspects to consider.