Creating value through mutual commitment to business network relationships

Creating value through mutual commitment to business network relationships A structural model of business relationship development in a business network context is formulated and tested on data from the European International Marketing and Purchasing (IMP) project. The empirical analysis demonstrates a causal chain from business network connection through mutual commitment and mutual dependence to value creation in the relationship. The results show that mutuality in business network relationships is critical in developing interfirm systems of workflow interdependence that promote the creation of value. This also implies that, through their interaction in business network relationships, firms in business markets organize and share an unbounded structure of interdependent activities, enabling them to achieve greater value than would be the case if they did not engage in relationship development. Copyright © 1999 John Wiley & Sons, Ltd. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Strategic Management Journal Wiley

Creating value through mutual commitment to business network relationships

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Publisher
Wiley
Copyright
Copyright © 1998 John Wiley & Sons, Ltd.
ISSN
0143-2095
eISSN
1097-0266
DOI
10.1002/(SICI)1097-0266(199905)20:5<467::AID-SMJ38>3.0.CO;2-J
Publisher site
See Article on Publisher Site

Abstract

A structural model of business relationship development in a business network context is formulated and tested on data from the European International Marketing and Purchasing (IMP) project. The empirical analysis demonstrates a causal chain from business network connection through mutual commitment and mutual dependence to value creation in the relationship. The results show that mutuality in business network relationships is critical in developing interfirm systems of workflow interdependence that promote the creation of value. This also implies that, through their interaction in business network relationships, firms in business markets organize and share an unbounded structure of interdependent activities, enabling them to achieve greater value than would be the case if they did not engage in relationship development. Copyright © 1999 John Wiley & Sons, Ltd.

Journal

Strategic Management JournalWiley

Published: May 1, 1999

References

  • Market structure and business performance: An evaluation of buyer/seller power in the PIMS database
    Cowley, Cowley
  • Developing buyer‐seller relationships
    Dwyer, Dwyer; Schurr, Schurr; Oh, Oh
  • Co‐evolution of capabilities and industry: The evolution of mutual fund processing
    Levinthal, Levinthal; Myatt, Myatt
  • Structuring cooperative relationships between organizations
    Ýring, Ýring; van De Ven, van De Ven
  • Networks: Between markets and hierarchies
    Thorelli, Thorelli
  • From transaction cost to transaction value analysis: Implications for the study of interorganizational strategies
    Zajac, Zajac; Olsen, Olsen

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