HOW SHOULD COMPANIES INTERACT IN BUSINESS NETWORKS? Håkan Håkansson & David Ford (2002) Justine BILLET – Clara FAIVRE – Axel FENEAUX – Cassandre GERON – Marguerite GUIBOURG – Alix LUTON

NETWORKS Nodes and threads Nodes = Business Units Threads = Relationships Relationship B

BUSINESS NETWORKS BUSINESS RELATIONSHIP Uniqueness Investment Influence inside the company

BUSINESS NETWORKS BUSINESS RELATIONSHIP CONNECTIONS BETWEEN RELATIONSHIPS A B C Supplier Customer A B C Customer Supplier Distributor - Supplier A B C

MANAGERIAL QUESTIONS ABOUT RELATIONSHIPS AND NETWORKS What kind of special opportunities and restrictions does a network bring to a company? What is the interplay between influencing others and being influenced by them? How can a company control a network and what are the effects on the network and on the company?

FIRST PARADOX Opportunities and limitations in a networks Network position Own resources Network Resources enable to offer innovative product and service features to end-users. Network position is affiliated to investment in the current structure and ways of thinking. Already established network positions restrict the company’s ability to react new concepts/innovations.

MANAGERIAL IMPLICATIONS OF THE FIRST PARADOX Action in more difficult but more important in the network as it requires a change in the structure. Managing the network’s expectations, convincing. New relationship ?

SECOND PARADOX Influencing and being influenced in a network Company Outcomes of strategies and actions SIMULTANEOUSLY Relationships Outcomes of those relationships and what happened in them

MANAGERIAL IMPLICATIONS OF THE SECOND PARADOX Strategizing Commitment Extend of effects on network Individual managers

THIRD PARADOX Controlling and being out of control in networks Need of power in a business network But need of balance to let the relationship grow

MANAGERIAL IMPLICATIONS OF THE THIRD PARADOX Need to manage IN the network Need of analysis of resources Complexity

VIRAL MARKETING IN B2B NETWORKS Company reputation Network Share of ideas Partnerships B2B

FIRST PARADOX AND VIRAL MARKETING Companies do not act, they interact Interactions = base of viral marketing Need to work on those interactions

FIRST PARADOX AND VIRAL MARKETING

SECOND PARADOX AND VIRAL MARKETING Influence / be influenced Interdependence / Co-dependence Acting & Interacting Conversations (Acting) Connections (Interacting) Results

THIRD PARADOX AND VIRAL MARKETING Risk of being over controlling  Potential partners will be aware of the situation thanks to the word-of-mouth.

THIRD PARADOX AND VIRAL MARKETING Risk of letting all the power to the other party of the network  Risk of attracting sharks.

CONCLUSION