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History
Publishing Programs
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Kimmo Alajoutsijarvi, University of Oulu
Kristian Moller, Helsinki School of Economics
Carl- Johan Rosenbroijer, Swedish School of Economics
& Business Administration
"Relevance of Focal Nets in Understanding the Dynamics of Business Relationships"
Abstract
The competitive environment is
undergoing a fundamental change. Traditional markets are being replaced by
networks. This poses major challenges for industrial companies. Management has
to look beyond ordinary customer and supplier relationships into intricate webs of firms. The
article focuses on the interaction between
a complex business relationship
and its immediate business
network that one calls a focal
net. It is contended that focal nets have several crucial roles in the
emerging industrial network theory. They mediate the impact of the larger
industrial networks into dyadic business relations; and vice-versa, the influence of
a dyad on a network is mediated by the focal
net. Theoretical and managerial relevance of focal
nets is demonstrated through a 30-year case study of three international corporations.
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