The purpose of this study is to develop a model of a starting situation for relationship initiation in turbulent business networks.
Abstract
Purpose
The purpose of this study is to develop a model of a starting situation for relationship initiation in turbulent business networks.
Design/methodology/approach
The study is designed as an extreme single case study that takes its point of departure in a company’s bankruptcy in the Swedish automotive industry.
Findings
This study illustrates how a new business relationship can start from a resource combination previously controlled by one actor (i.e. a single company) in a turbulent business network, thereby bringing nuances to the common understanding that new relationships start in stable business networks where resource combinations are developed between actors in established business relationships.
Originality/value
Previous studies have stated that the development of a mutual orientation between actors leads to the formation of a business relationship. The business relationship then leads to resource adaptations between the two companies. The developed model, however, illustrates that this pattern can be reversed in situations of turbulence. Hence, previously adapted resources might lead to the formations of a business relationship. Based on this observation, the authors argue that there are reasons to question if previous models of business relationship initiation and development in business networks are adequately equipped for analysis in turbulent business networks.
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León Poblete and Anna Bengtson
The purpose of this paper is to explore an important management aspect of business relationship dynamics, namely, the reactivation process of previously ended buyer–supplier…
Abstract
Purpose
The purpose of this paper is to explore an important management aspect of business relationship dynamics, namely, the reactivation process of previously ended buyer–supplier relationships.
Design/methodology/approach
A processual case study approach focusing on a single in-depth case has been used. The case is based on longitudinal data from a number of sources concerning one reactivation failure.
Findings
Grounded in previous research and based on this study’s case findings, the authors have designed a model of analysis for relationship reactivation processes. Using the model on this study’s particular case, the authors show how the structural properties of network embeddedness and resource ties worked in favor of the process, whereas the social bonds and the lack of them led to mistrust that disturbed the negotiation and, hence, worked against the reactivation process.
Originality/value
This study makes a contribution to the field of relationship dynamics by exploring relationship reactivation processes. The designed model shows how reactivation can be understood as an interplay between structural properties and (re)building activities and contributes new knowledge on factors that affect this process.
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Anna Bengtson, Amjad Hadjikhani and Anna Ljung
Purpose – Researchers rarely touch on the phenomenon of crisis in the relationship itself combined with relationship conflict caused by turbulence in the relationship environment…
Abstract
Purpose – Researchers rarely touch on the phenomenon of crisis in the relationship itself combined with relationship conflict caused by turbulence in the relationship environment – specifically for emerging markets. The aim of this study is to develop a theoretical view for studying how firms manage business relationships when facing crises caused both by involved parties and by contextual factors.
Design/methodology/approach – Based on a business network perspective, the paper develops a relationship view stressing trust/distrust, commitment/de-commitment and uncertainty/knowledge as central explanatory relationship elements. The paper employs longitudinal case study method and discusses how the relationship between the Swedish firm Ericsson and Telefónica in Argentina for the period of 1998–2004. The process view is composed of three phases: the start-up phase, a phase of crisis and instability and finally a phase of restoration.
Findings/originality – With the assumption of extensiveness in relationship development and high risk in falling from conflict into critical problems in emerging markets, the paper has elaborated new theoretical and empirical thoughts. The study gains further strength from the fact that the number and intensity of crises is increasing because of the escalation in global interdependency. It contributes further knowledge on strategy decisions like exit, wait and see, take the risk and advance affecting the firms’ business relationship.
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Based on the findings in earlier research of the importance of relationships in general, and relationships to social actors in particular to explain innovation processes in…
Abstract
Based on the findings in earlier research of the importance of relationships in general, and relationships to social actors in particular to explain innovation processes in emerging economies, the aim of the paper is to reach a better understanding of the mechanisms behind innovations in these economies. This has been accomplished through an investigation of an innovation process and the relationships between two business firms and a NGO that were central for its progression. Theoretically the study is constructed on the concepts of trust, commitment and cultural capability in long and short-term relationships as discussed in business network theory and theory on discontinuous innovation. A case study method is used and the social innovation project ‘Connexão Belterra’ that enabled connectivity in the distant Amazon region of Pará, Brazil, was investigated.
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Anna Bengtson, Anna Ljung and Amjad Hadjikhani
Adding to the theoretical view of relationship development, this paper holds the view that relationship change encompasses not only smooth incremental change but also includes…
Abstract
Purpose
Adding to the theoretical view of relationship development, this paper holds the view that relationship change encompasses not only smooth incremental change but also includes crises which can trigger relationship weakening, dissolution and/or recovery. The aim is to develop a theoretical view that allows understanding of both smooth incremental and critical changes in the process of relationship development.
Design/methodology/approach
Based on a business network perspective, the paper's relationship view holds uncertainty, commitment and trust as central explanatory elements. The process view is composed of three episodes: incremental relationship development; relationship crisis; and ending or survival. The paper employs a longitudinal case study method and discusses how the relationship between the Swedish firm, Ericsson, and its counterpart, Telefónica, develops in the emerging market of Argentina during the period of 1998-2004.
Findings
Conclusions demonstrate the vulnerability of relationships due to counterparts' behaviour and network embeddedness. This is a risk of commitment deterioration, and remedial actions like investment in new commitments will reduce distrust and uncertainty. Re-energizing relationships incrementally requires behaviour like waiting strategies, when otherwise the choice is to exit.
Originality/value
Few researchers have combined the findings from stable relationship development studies with the findings from research on crisis into one model handling both stability and instability in business relationships. This is despite the fact that episodes of turbulence and instability are becoming more common in business relationships, due to entrance into more unstable markets, and markets crises of various types.
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Siavash Alimadadi is a PhD candidate at the Department of Business Studies, Uppsala University. His research focuses on the role of knowledge and trust in the internationalization…
Abstract
Siavash Alimadadi is a PhD candidate at the Department of Business Studies, Uppsala University. His research focuses on the role of knowledge and trust in the internationalization process. His current research examines the impact of socio-political actors on MNCs in Turkey.
Adopting aspects of the resource-based perspective and interorganizational relational dynamics, this paper examines the notion of resource transformation in the reconstitution of…
Abstract
Purpose
Adopting aspects of the resource-based perspective and interorganizational relational dynamics, this paper examines the notion of resource transformation in the reconstitution of broken interorganizational relationships.
Design/methodology/approach
Following a qualitative approach, the research involved four in-depth case studies of buyer–supplier relationships among 12 Scandinavian manufacturing firms.
Findings
The results suggest that reconstituting broken interorganizational relationships, whether overlooked or underutilized, can pose important consequences for resource transformations. To adapt in dynamic environments, firms use resources in new combinations, and various relationship-specific resources may be difficult, if not impossible, to transform independent of the reconstitution process. Such resource transformations can occur when competencies in reconstituting interorganizational relationships are combined to synthesize novel resources or recombined with other resources. Four identified types of resource transformations in reconstitution processes – in production facilities, products, human know-how and coordination of interorganizational collaboration – can occur in each firm and/or in the interorganizational relationship.
Research limitations/implications
Although the explorative multiple-case study approach afforded novel insights, the findings have no representative or generalizable implications in any positivist sense and thus warrant careful interpretation. Nevertheless, they make important contributions to the literature and illuminate promising avenues for future research, which should involve additional data collection and quantitative studies.
Practical implications
As firms reconstitute broken interorganizational relationships, the transformation of their resources can provide new, expected resources capable of generating substantial benefits.
Originality/value
This paper fills an identified gap in research regarding how reconstituting broken interorganizational relationships influence the transformation of resources. The paper provides new conceptual and empirical insights as well as makes several contributions to the literature on the topic.