More on Network-based Strategies Specifically, building on the work of Benjamin Gomes-Casseres on Group vs Group
Groups are Only as Strong as the Weakest Link Groups are only as strong as the alliances within them –Groups are made up of numerous smaller alliances that require focused attention –Manage individual and small number alliances with care and a respect for serial equity
At the same time, the Whole is More than the Sum of the Parts Manage the group as a whole, otherwise lost opportunities will abound –The whole is more than the sum of the parts, but God is in the details –Balancing particularistic and universal ties is demanding –Lost opportunities can turn into network failures if they are numerous enough
Don’t Overestimate Network Effects It’s easy to overestimate how much one can do because network opportunities are so numerous and tempting Expand with caution because network effects can be helpful as well as harmful Maintain a strategic sense/mind about the attractiveness of expansion
Strategic Position within Networks Where you sit decides what you get Highly central positions offer great possibilities but demand great efforts Peripheral positions offer a taste of network possibilities but not much leverage Pay attention to both firm-based and group- based competitive advantages
Can you Successfully Sustain a Network-based Strategy? Can you successfully manage the firm from both resource-based and relationship-based perspectives? Are the advantages of cooperation greater than the advantages of competition? Are you partnered with the right network members? Are you able to leverage your relationships to leverage from firm-based resources & organizational capabilities
Too Early or Too Late to the Party? Just like firm-based competition, you can be too early or too late to benefit fully from network-based competition Are you setting standards and driving interorganizational learning within the network Or are you simply accepting the terms of cooperation and interaction set by others?