Industrial Marketing Management 33 (2004) 175 183
Managing in complex business networks
Thomas Rittera,*, Ian F. Wilkinsonb,1, Wesley J. Johnstonc,2
a
Department of International Economics and Management, Copenhagen Business School, Howitzvej 60, DK - 2000 Frederiksberg, Denmark
b
School of Marketing, Faculty of Commerce and Economics University of New South Wales, Sydney, NSW 2052, Australia
c
Center for Business and Industrial Marketing, Georgia State University, Atlanta, GA 30303-3083, USA
Received 1 December 2002; accepted 1 October 2003
Abstract
For many years, research and management thinking has focused on understanding business relationships and networks. Now, the focus is
shifting to managing business relationships and networks. This new approach focus poses two questions. Since networks are loosely coupled
systems, to what extent are business networks manageable? Furthermore, how can a firm s ability to manage a network be characterized and
measured? This paper addresses these two questions by synthesizing the current state of knowledge on management issues in networks and
the contribution to managerial abilities in complex relationships. The discussion leads to a set of propositions describing the abilities firms
will need to successfully manage complex business networks.
© 2004 Elsevier Inc. All rights reserved.
Keywords: Relationships; Networks; Complexity; Ability; Management
1. Introduction and competencies (Håkansson & Snehota, 1995; Walter,
Ritter, & Gemünden, 2001). Therefore, managing business
A firm is embedded in a network of ongoing business relationships and being able to manage in business networks
and nonbusiness relationships, which both enable and con- is very important. However, effectively doing so appears to
strain its performance. A business enterprise looks more be a difficult issue, given that an estimated 60% of partner-
like a linking unit where its strategic attributes lie in how it ships fail (Spekman, Isabella, & MacAvoy, 1999).
connects other market participants to each other. Thus, the Furthermore, the firm itself is nothing more than a
picture of both the possibilities and the means to manage the complex network of internal relationships among people,
business enterprise become quite different (Håkansson & departments, and functional units that form the basis of its
Snehota, 1995). As such, firms should not be seen in ability to develop and implement its strategies. Consequent-
isolation but as being connected in business systems. ly, firms are confronted with the management and integra-
Focusing on any one single firm cannot provide a tion of these internal and external relationships. Firms are
significant understanding of the processes of business seldom in total control of all these relationships and are
(Johnston, 1981). A firm s relationships are one of the subject to the control and influence of others within and
most valuable resources that a company possesses around the relationship. As a result, business networks are
(Håkansson, 1987). They provide direct benefits in terms not generally under the control of an individual firm but are
of the many valued functions they perform and the resources self-organizing systems, in which order emerges in a bot-
they help create and provide access to, including knowledge tom up fashion from the local interactions taking place
and markets. They also provide indirect benefits because among firms in the relationships in which they are involved
they grant access to other relations, organizations, resources, (Wilkinson & Young, 2002). This situation presents a
challenge and a dilemma for management in terms of
developing and implementing strategies.
* Corresponding author. Tel.: +45-3815-2518; fax: +45-3815-2500.
While the study of relationships and networks in business
E-mail addresses: ritter@cbs.dk (T. Ritter), i.wilkinson@unsw.edu.au
has a long history (Wilkinson, 2001), their role and impor-
(I.F. Wilkinson), wesleyj@gsu.edu (W.J. Johnston).
1
tance in value creation and delivery is the subject of
Tel.: +61-2-9385-3652; fax: +61-2-9663-1985.
2
Tel.: +1-404-6514-184; fax: +1-404-6514-198. increasing attention in the marketing and business literature.
0019-8501/$ see front matter © 2004 Elsevier Inc. All rights reserved.
doi:10.1016/j.indmarman.2003.10.016
176 T. Ritter et al. / Industrial Marketing Management 33 (2004) 175 183
Examples of this are the development of concepts of relationships may vary in their properties (Day, 2000; Ford,
collaborative advantage (Kanter, 1994); the role and impor- 1980). In carrying out their business activities, firms may
tance of cooperative strategies and alliances (Contractor & develop relationships with various types of firms and other
Lorange, 2002); cooperation and competitive advantage types of organizations because they affect, directly or indi-
(Dyer & Singh (1998); Wilkinson & Young, 2002); the rectly, their performance. One study reports that, on average,
development of the Industrial Marketing and Purchasing firms have 10 important business relationships (Håkansson
(IMP) Group and the markets-as-networks tradition (Johan- & Henders, 1992). The different types of potential relation-
son & Mattsson, 1994; Håkansson & Snehota, 2000); the ship partners may be conceptualized in terms of the firm s
rise of relationship marketing in marketing management value net (Brandenburger & Nalebuff, 1997).
theory (Möller & Halinen, 1999; Sheth & Parvatiyar, 2000); The value net identifies four types of firms and organ-
focus on the network properties of markets and economies izations that affect a firm s ability to produce and deliver
(Achrol & Kotler, 1999; Fligstein, 2001); and advances in value to an intermediate or final customer: suppliers, other
logistics and supply chain management (Harland & Knight, customers, competitors, and complementors. We have ex-
2001; Peck & Jüttner, 2000). tended the model of Brandenburgers and Nalebuff (1997) by
Besides this long-standing interest in understanding net- incorporating intrafirm relations, both within the focal firm
works, interest in managerial aspects of networking is fairly and other firms (Fig. 1). This is an important consideration
new and diverse. A firm s ability to develop and manage given that (1) firms interact with other organizations through
successfully its relationships with other firms may be its networks of internal interpersonal and cross-functional
viewed as a core competence, which varies among firms relations, and (2) an important strategic issue confronting
(Dodgson, 1993; Sivadas & Dwyer, 2000) and which is an management is the interfacing of intra- and interfirm rela-
important source of competitive advantage (Day, 2000). But tionships (Kanter, 1994; Webster, 1992). In addition to the
what exactly is this ability and how can it be conceptual- types of actors in the value net, there are also governmental
ized? An answer to this question is important for both agencies, research and development institutions, educational
academics and managers. Academics need to find a com- institutions, and industry associations.
mon ground for discussion to produce a comprehensive Business relationships may be formed with any of the
understanding of the phenomena. Managers who invest a lot types of actors depicted in the value net. The range of
of resources in networking, partnering, and alliances can relationships a firm participates in represents its relationship
only be offered guidance when issues are made explicit and portfolio. This overall portfolio, sometimes also called net,
research is conclusive. This, in turn, requires an overall is made up of a number of subportfolios concerning each
conceptual understanding of the networking ability of firms. type of relationship partner. Thus, we can talk about a firm s
In this paper, we discuss the nature and components of supplier, customer, complementor and competitor portfolio.
firms networking ability. First, we consider the types of These business relationships can perform a variety of
relationships in which a firm is embedded and the meaning functions for those involved (Håkansson & Snehota, 1993;
of the terms relationship management and network man- Walter et al., 2001), through the activity links, actor bonds,
agement. Hereby, we address our first question: To what resource ties, and schema couplings that result (Håkansson
extent can a firm manage its network? We distinguish & Snehota, 1995; Welch & Wilkinson, 2002):
.
between managing of versus management in relationships Relationships with customers: Developing good work-
and networks and between the proactive and reactive roles ing relationships with customers is a means by which a firm
firms can play. We then present previous research focused
on relationship and network management in various con-
texts to identify the key components of firms network
ability. This section will present propositions on how
relationship and network management can be characterized
and classified based on today s understanding of the
concept. The final section examines the management and
research implications.
2. Types of business relationships
A business relationship can be defined as a process where
two firms or other types of organizations form strong and
extensive social, economic, service and technical ties over
time, with the intent of lowering total costs and/or increasing
value, thereby achieving mutual benefit (Anderson &
Narus, 1991, p. 96). The notion of a process suggests that Fig. 1. A firm s value net (adapted from Brandenburger & Nalebuff, 1997).
T. Ritter et al. / Industrial Marketing Management 33 (2004) 175 183 177
understands and serves customers needs and codevelops have been termed hub firms and the networks involved
new products and services. Relationships with intermediate strategic networks.
as well as final customers are included here, such as those Others have continually argued that firms are not in total
with distributors and ECR systems but also relationships to control over their resources as other actors influence or
prospective customers. restrict the actions taken by a given firm (Ford, 1997;
.
Relationships with suppliers: Relationships with sup- Håkansson & Ford, 2001; Wilkinson & Young, 1994,
pliers of strategically valuable products and services can be 2002). There is no invisible hand creating a situation of
an important and durable source of competitive advantage efficiency and health. Instead there are several visible
and one that is hard for others to imitate or steal Dyer & hands that try to create situations that are beneficial to
Singh, (1998). Firms are embedded in production networks themselves (Håkansson, 1987, p. 89). In this view, firms
involving various chains of suppliers specializing in differ- and networks of firms are seen as complex adaptive systems
ent aspects of the value creation process. The functioning of that are not centrally directed. Instead, firms are seen to
these networks depends on the capabilities of the actors as comprise complex interacting sets of business and social
well as on the working relationships between them. relationships among people and units that are not complete-
.
Relationships with complementors: Firms develop ly orchestrated by top management (Stacy, 1997). In busi-
relationships with many other types of firms whose outputs ness networks, firms participate in a self-organizing process
or functions increase the value of their own outputs. One in which order emerges in a bottom up manner from the
example is joint marketing schemes, whereby firms coop- microinteractions taking place among firms involved
erate in reaching out to customers in the form of joint (Easton, Wilkinson, & Georgieva, 1997; Wilkinson &
promotion and distribution agreements, such as Lego Young, 2002). From this point of view, networks are
teaming with Hewlett Packard to serve the children s toy unmanageable, in the sense of being controlled and directed
market and Procter and Gamble teaming up with comple- by a single participant firm. All firms are simultaneously
mentary product suppliers (Coca Cola or Pizza Hut) in involved in the ongoing management of the network, and
promotion campaigns. Suppliers of complementary prod- the resulting structure and performance is coproduced by
ucts and services may also be innovation partners, as new their actions. This raises important issues for the meaning of
products can arise from recombining their outputs in the term management, and the extent to which firms can and
productive ways. Lastly, these relationships include rela- should try to manage their relationships and networks.
tionships with government agencies that can be important The differences between these two points of view have
in entering new markets or in keeping informed about been attributed recently to the difference between intentional
legislative developments. and unintentional networking, whereby the former is a
.
Relationships with competitors: Cooperative relation- deliberate activity and the latter is an emergent activity
ships among competitors may be developed for various (Möller & Svahn, 2003). We argue that both these points of
purposes, beyond the typical collusion to control and view are relevant and that firms confront different types of
subvert competition. For instance, competitors collaborate relationship and network management situations, including
to develop product and technology standards, such as the those when they are in a powerful and controlling position,
3G mobile telephone (Grundstrom & Wilkinson, in press). those when they are the subject of others control, and those
Collaboration among competitors from one country to enter in which multiple parties have strong influence over each
and develop new international markets is another form of other. All these situations require relationship and network
cooperative relationship among competitors (Welch, Welch, management and draw on the skills and competencies of a
Wilkinson, & Young, 1996). firm or individual to handle the kinds of interactions taking
We can also distinguish a firms subnetworks along the place in the best interests of their firms and themselves. At
different functions they may perform, for example, produc- one extreme, we have the management of relationships,
tion networks, innovation networks and distribution net- when a firm is able to choose its relationship partners and
works (Möller & Svahn, 2003). The value net focuses on the control and direct the way the relationship operates. This
relationships in which the focal firm is a direct participant. may arise when a monopolist, such as a government utility
But all these relationships are themselves connected to other provider, deals with its customers and distributors or when a
relationships forming various types of overlapping value franchisor controls and directs its franchisees. But more
chains. typically, there is some degree of mutual interdependence
such that each party has some ability to influence the other.
The management challenge is that of management in rela-
3. Managing or being managed in networks tionships. The firm has to cope with managing the inter-
actions taking place in a relationship, which may be with a
There has been a long debate on the nature and possi- partner not entirely of the firms choosing; have been in
bility of management in networks. Some authors have operation for some time and, therefore, has a history that
argued that firms are in control of themselves and even of exerts an influence on how things are done; and a relation-
their surrounding firms (Jarillo, 1988). Such controllers ship in which the counterpart has complementary, compet-
178 T. Ritter et al. / Industrial Marketing Management 33 (2004) 175 183
ing and conflicting views and agendas. In a similar manner, negative. Positive dependence is when another firm s
we progress from the relationship level to the network level actions help a firm achieve its objectives, which is typical
where (1) a firm is in control of a network of other firms and of relationships with customers, suppliers, and complemen-
operates as a hub firm, channel, or network captain, and is tors. Negative dependence is when another firm s actions
concerned with the management of the network, and (2) hinder a firm from achieving its objectives, as is typical of
management in networks, where the firm operates as one of relationships with competitors. All relationships will have a
many having an influence on the structure and functioning mixture of both positive and negative dependencies con-
of the network. taining cooperative, competitive, and conflictual elements.
Table 1 presents a simple typology of network situations From this discussion, we can see that network and
based on how dependent each firm is upon the other and is relationship management is as much about being manage-
similar to classification schemes proposed by Alajoutsijärvi, able as it is about managing (Wilkinson & Young, 1994,
Möller, and Rosenbröijer (1999) and Campbell (1985). 2002). They simultaneously involve both proactive and
If firm A is highly dependent on firm B, B has substantial reactive elements. They involve initiating and responding,
power over A because power stems from the dependence of acting and reacting, leading and following, influencing and
one firm on another (Emerson, 1962). Similarly, B s depen- being influenced, planning and coping, strategizing and
dence on A can be high or low, and this affects A s power improvising, forcing and adapting. As such, networking
over B. If neither A nor B are dependent on the other, there happens in a space of paradoxes (Håkansson & Ford,
is no relationship to be managed. This may be the case in 2001), and the mix and balance of these elements will vary
perfectly competitive markets, with numerous similar cus- over time in a given relationship, as circumstances change
tomers and suppliers and low switching costs. A firm s across relationships. In short, relationship and network
purchases of consumables, such as paper and pens, may be management is about managing interactions with others,
of this type. But if firms enter into a long-term purchase not about managing others. This is a two-way process and
agreement or establish e-procurement systems, the situation involves influencing others and letting others have influence
changes to one of greater mutual dependence. over you: the extent to which a company will allow others
Followship relationships are those in which a firm is to influence its nominally internal activities and will seek to
highly dependent on another firm, but the other is not very involve itself within others is an important issue of mana-
dependent on the firm. In this case, the nondependent firm is gerial decision-making and control (Ford & Saren, 1996,
free to choose with whom they transact and to exert p. 48).
considerable influence over the way the relationship devel- The term to manage has two meanings3, which nicely
ops. The dependent firm must become a follower and adapt reflects the above distinction between the proactive and
to the wishes of the more powerful firm. But the less reactive elements of relationship and network management.
powerful actor is not without means of influence and faces On one hand, to manage means to lead, to determine, to
the problem of how best to manage its interactions with the organize ( I am managing this firm ). On the other hand, to
more powerful firm. From the perspective of the powerful manage means one can cope with a given situation ( I can
actor, the relationship is a leadership relation. manage this situation ).
The last type of relationship involves mutual depen- This discussion leads us to our first proposition:
dence, in which no firm is clearly more powerful. Each
Proposition 1: (a): The management of interactions with
depends on the other for important inputs. Here, some form
other firms and organizations both directly and indirectly is
of collaborative relationship may be established, or one firm
a key part of a firm s managerial activities.(b): The ability to
may take the initiative in directing the relationship with the
effectively manage such interactions is critical for achieving
agreement of the other, so long as their needs are also
economic goals and as such is a core competency of a firm
considered.
and its personnel.(c): The management of interactions in
Relationships do not always fit neatly into these ideal
relationships is matched to relationship conditions, includ-
types, but rather, they involve mixtures of interdependencies
ing the different types of relative dependencies that exist
that can vary across issues and over time. In addition, the
between relationship partners.
form of the interdependence can be both positive and
Table 1
4. The components of relationship and network
Types of relationship situations
management
B s perceived power over A
(A s perceived dependence on B)
The tasks of managing in relationships and networks
Low High
have been discussed in various ways in the literature, using
A s perceived Low (a) No relationship (c) Followship
power over B relationship
B s perceived High (b) Leadership (d) Mutual
dependence on A relationship relationship 3
We thank Jens Geersbro for pointing out this distinction.
T. Ritter et al. / Industrial Marketing Management 33 (2004) 175 183 179
a number of different concepts. To structure these contribu- relationships to enable the management of interactions with
tions, it is helpful to distinguish between several levels of customers.
management. These are depicted in Fig. 2, where each dot The third level of management is that of connected
represents an individual actor, which could be a person, relationships in which the actor is not directly involved,
business unit, firm, or other type of organization. such as the indirect connections between a firm and its
The first level of management is the individual actor customer s customers or supplier s suppliers (Anderson et
viewed in isolation, which is similar to most resource-based al., 1994). The management problem here involves dealing
theories of firms. But as we have pointed out, a firm is not with the indirect effects of management action in one
an island but is connected to other firms and organizations relationship on other relationships in the network, including
in important ways that require management attention. In responding to opportunities and problems arising from
addition, within each firm, there are still networks of action taking place in connected relationships. Here, the
relationships among people and business units that deter- role of relationships as bridges or conduits to other relation-
mine how firms can and do behave. ships becomes important, giving rise to various types of
The second level is that of the individual dyad. This has indirect network functions of relationships (Håkansson &
been the focus of much research attention in the study of Snehota, 1995; Walter et al., 2001). The strength of weak
buyer seller relationships in business markets and distribu- ties as important potential bridges to different types of actors
tion systems (see Wilkinson, 2001 for a review). The man- and knowledge becomes relevant (Granovetter, 1985).
agement of individual relationships has been referred to as The final level of management is that of the network
the management of micropositions in networks (Johanson itself. Here, the concepts of network or macroposition
& Mattsson, 1987, 1992; Mattsson, 1985) and corresponds (Johanson & Mattsson, 1987, 1992; Mattsson, 1985) and
to Möller and Halinen (1999) relationship management network identity (Anderson et al., 1994) become relevant.
level 1. But relationships, like firms, are not isolated from These arise as a result of the interactions taking place among
each other but are interconnected forming networks actors in the network, from the various micropositions of
(Anderson, Håkansson, & Johanson, 1994; Wilkinson & actors, including interaction between and within firms and
Young, 2002). This leads to various types or levels of other types of organizations (government actors), and busi-
network management, including management within and ness and nonbusiness interactions (Håkansson & Snehota,
between relationships (Ford & McDowell, 1999; Möller & 1995; Welch & Wilkinson, 2002).
Halinen, 1999). Several propositions arise from this conceptualization of
One form of connection between relationships centers on levels of relationship and network management:
an individual actor or firm, which is simultaneously in-
Proposition 2: Management in business relationships and
volved in a number of relationships. These constitute an
networks arises at the individual, group, or business unit
actor or firm s relationship portfolio and the set of tasks
and firm level and these levels are interrelated.
involved in managing such a set of relationships, which is
Proposition 3: Management in business relationships and
described by Mattsson (1997) as the extended interpreta-
networks involves relationship-specific and cross-relational
tion of relationship marketing. The tasks involved include
tasks.
the problem of allocating resources to different relationships
and managing interactions within each relationship (Easton,
1992; Ford, 1980; Håkansson, Johanson, & Wootz, 1976). It 4.1. Relationship-specific tasks
also includes the management of positive and negative
interactions among portfolio relationships, such as the Under this heading are all activities aimed at managing
management of supplier relationships and cross-functional interactions in one relationship, including the initiation of
relationships. Möller and Halinen (1999, p. 419) talk about
relationship management capability, which refers to a
firm s competence in handling individual exchange relation-
ships. Walter (1999) suggests five tasks on this level: (1)
searching for appropriate actors in the two firms, (2)
bringing these actors together, (3) exchanging information,
(4) coordinating activities between the two firms, and (5)
getting negotiation results. Helfert and Gemünden (1998)
develop a set of three relationship tasks: exchange, coordi-
nation, and adaptation activities. Ling-yee and Ogunmokun
(2001) operationalize relational capabilities in terms of
substantial cooperation, communication and involvement.
The importance of communication (i.e., exchange of infor-
mation) and coordination is also highlighted by Sivadas and
Fig. 2. Levels of relationship and network management. Dwyer (2000) as a cooperative competency of a relation-
180 T. Ritter et al. / Industrial Marketing Management 33 (2004) 175 183
ship, and by Day (2000). In a nutshell, all these contribu- relationships as unconnected and derive strategies for the
tions suggest that activities are aimed at exchanging goods, individual relationship and not for the network (Ritter, 2000;
services, finances, information, etc. and at coordinating Wilkinson & Young, 2002).
different activities between firms, that is, synchronizing Based on task classifications in general management
efforts of different actors which goes beyond pure exchange. literature (Carroll & Gillen, 1987; Koontz & O Donnell,
In terms of the IMP interaction framework, this synchroni- 1984), four cross-relational tasks are suggested: planning,
zation is conceptualized in terms of the actor bonds, organizing, staffing, and controlling (Ritter, 1999; Ritter &
resource ties, and activity links, which develop over time Gemünden, 2003; Ritter, Wilkinson, & Johnston, 2002).
in relationships (Håkansson, 1982; Håkansson & Snehota, Planning refers to the development of an overall strategy,
1995), as well as the schema couplings or mutually adapted keeping in mind the strategic window restrictions discussed
theories that arise among relationship partners (Welch & above. The main argument for planning is that there is a
Wilkinson, 2002). Since relational activities develop rela- need for integration of the contributions offered by differ-
tionships through phases (Dwyer, Schur, & Oh, 1987; Ford, ent actors in the network. Only if there is a synergy
1980), exchange and coordination are aimed at initiation, between relationships can the full potential be achieved.
developing (including adapting), using, routinizing, or dis- Since relationships are connected, a cross-relational plan is
solving a relationship. In a way, dyadic interaction ability needed.
(interpreted as the performance of exchange and coordina- Organizing deals with the implementation of the plan. As
tion) enables a firm to develop relationships. such, the definition of particular aims for individual relation-
Support for this understanding can be also found in the ships and the allocation of financial resources to specific
literature on marketing competence and orientation. In their relationships is part of organizing. These overall plans for
operationalization, Tuominen, Möller, and Anttila (1999) individual relationships are cross-relational issues because
relate marketing capability to information exchange, involv- decisions made do have an impact on all relationships.
ing shared objectives and plans and operational interfaces. However, the fact is acknowledged that these issues need
The literature on market orientation argues that the ex- to be communicated and coordinated within the dyads.
change and accumulation of information about customers Staffing is the task of dealing with human resources. The
and competitors are based on certain activities. More re- allocation of personnel to relationships and management of
cently, market knowledge competence has been defined as a responsibilities and conflicts between the people involved in
set of activities aimed at interacting with customers and relationships is part of this exercise.
competitors (Li & Calantone, 1998). Research on the pattern In accordance with the management literature, control-
of development of relationships over time identifies various ling is seen as the final step of this cycle, as it reviews the
contributing processes including the development of trust results of the former steps. At the same time, it is the starting
and understanding (Dwyer et al., 1987; Ford, 1980). The point for the process as the review of results provides inputs
initiation of a relationship is part of relationship develop- into the planning phase.
ment. This is a two-way process that includes locating and
Proposition 5: Cross-relational tasks are planning, orga-
choosing partners and also getting chosen (Wilkinson et al.,
nizing, staffing, and controlling aimed at dividing the
2003). Other contributions stress the importance of relation-
overall value creation system into work packages and
ship dissolution and the relationship aftermath as a strategic
coordinating and integrating those.
issue in relationship management (Dwyer et al., 1987;
Havila & Wilkinson, 2002). Research on key account It is important to note that dyadic and cross-relational
management has also identified a number of the key tasks management tasks are ongoing and part of a continuous
of such managers (Millman & Wilson, 1999). Thus, we process of interaction taking place within and between
suggest: relations. Networks are living, ever-changing organisms
(Easton, 1992), and a firm s network management abilities
Proposition 4: Relationship-specific tasks are exchange
affect its performance and development (Day, 1994;
and coordination aimed at initiating, using, developing,
Drucker, 1985; Li & Calantone, 1998; Prahalad & Hamel,
routinizing, and dissolving the relationship.
1990; Ritter & Gemünden, 2003). As with any competence,
it can erode. Knight (2000) argues that individuals and
4.2. Cross-relational tasks organizations can learn to collaborate, and they can also
unlearn or forget.
Compared with the relationship-specific tasks, cross- Network management involves marrying the external
relational tasks have been largely neglected in the literature. network of relationships to and via the internal network of
These tasks focus on the simultaneous management of relationships. For example, Ritter and Gemünden (2003)
several relationships and management of interconnections highlight an integrated internal communication structure as
among relations. A number of portfolio models have been an important part for the development of a firm s network-
derived (Freytag, 2001; Turnbull & Zolkiewski, 1996). ing ability. In addition, the literature on market orientation
However, a major critique of these is that nearly all treat highlights the role of interfunctional communication coor-
T. Ritter et al. / Industrial Marketing Management 33 (2004) 175 183 181
demands an integrated understanding of these. This is
particularly true with the recent trend in outsourcing, as
formerly internal relationships progressively become inter-
organizational relationships.
We also need to develop better ways to teach and nurture
such competencies in people and firms and to highlight the
importance of network relationships in basic marketing and
business (dis)courses. This relates back to the implications
for business practice and the challenge to develop better
capabilities.
Fig. 3. Overview of network management tasks.
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Welch, C., & Wilkinson, I. F. (2002). Idea logics and network theory in Ian Wilkinson is Professor of Marketing at the University of New South
business marketing. Journal of Business-to-Business Marketing, 8(3), Wales. He was educated in the UK and Australia and has held academic
27 48. posts at various American, European, as well as Australian, universities.
Wilkinson, I. F. (2001). A history of channels and network thinking in His current work focuses on the evolution and management of interfirm
marketing in the 20th century. Australasian Marketing Journal, 9(2), relations and networks in domestic and international business.
23 53.
Wilkinson, I. F., & Young, L. C. (1994). Business dancing: The nature and
Wesley J. Johnston is the CBIM RoundTable Professor of Marketing and
role of interfirm relations in business strategy. Asia-Australia Marketing
the director of the Center for Business and Industrial Marketing in the
Journal, 2(1), 67 79.
Robinson College of Business at the Georgia State University. His MBA
Wilkinson, Ian, Freytag, Per Vagn, Young, Louise and Celine, Mary-Louise
and PhD are from the University of Pittsburgh. He is currently involved in
(2003). Business Mating: Who Chooses Whom And Gets Chosen? 19th
series of seminars for numerous companies dealing with networking and
Industrial Marketing and Purchasing (IMP), Lugarno, Switzerland.
selling value.
Thomas Ritter is Associate Professor at the Copenhagen Business School,
Denmark. His research deals with managing business relationships and
industrial networks, particularly focusing on firms capabilities and compe-
tencies, mutual value creation, and information technology. He has published
works in Industrial Marketing Management, Journal of Business Research,
International Journal of Research in Marketing, European Marketing
Journal, Journal of Business and Industrial Marketing, among others.
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