Column 14 · Supply Chain and Networks · Era 4, Orientation and Relationships (1990s)
Business Networks
Environment and context · Landmark · Cluster V, Interfirm Networks
Description
They argued that a dyadic business relationship can be understood only within the network in which it is embedded, introducing the anticipated constructive effects of a relationship on connected relationships and the concept of network identity.
Managerial Implications
No business relationship stands alone; each is connected to the partner's other relationships, and changes ripple through the network. Before acting in one relationship, consider how your partner's suppliers, customers, and competitors will respond. Position the firm in the network, not just in the dyad: who you are connected to, and how your partners are connected, determines your access to information, resources, and opportunities.