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Cooperation & Networks > 2/3 - Analyzing networks > Flashcards

2/3 - Analyzing networks Flashcards

1
Q

Common content between different kinds of networks

A

1) independent actors
- > organizationally independent

2) cooperate for mutual benefit
- > both need to have a benefit

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2
Q

ARA framework

What is it used for?

A
  • used for analyzing networks

- who is part of the network, which resources do they have, which activities do they do?

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3
Q

ARA framework

What does ARA stand for?

A

Actors
Resources
Activities

-> are the three components of function of business relationships

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4
Q

ARA framework

Activities

A

performed by two actors, through their relationship, can be adapted to each other so that their combined efficiency is improved (e.g. just in time exchange)

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5
Q

ARA framework

Resources

A

two parties can learn about each others resources and find new and better ways to combine them
-> relationship can have innovative effect

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6
Q

ARA framework

Actors

A

can learn that by cooperating, they can raise the benefits that each receives

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7
Q

Actors - Groups

A

Actors are divided into groups with different positions along the value chain

Identification question:
- Who has interest in our firm? Who is affected by our firm?

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8
Q

Actors - Groups

The innovation network of the firm

Focal company

A

Own competencies (product, process, market)

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9
Q

Actors - Groups

The innovation network of the firm

Different groups/actors

A 
Administration
Buyers
Competitors
Co-Suppliers
Consultants
Distributors
Research and training institutes
Suppliers and Producers of means of production
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10
Q

Actors - Groups

The innovation network of the firm

Administration

A
  • subsidy
  • political support
  • mediations, transfer
  • laws, (de-)regulations
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11
Q

Actors - Groups

The innovation network of the firm

Buyers

A
  • defining new requirements
  • solving problems of implementation and market acceptance
  • reference function
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12
Q

Actors - Groups

The innovation network of the firm

Competitors

A
  • Joint basic research
  • establishing standards
  • getting subsidies
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13
Q

Actors - Groups

The innovation network of the firm

Co-Suppliers

A
  • complementary know-how

- solving interface problems

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14
Q

Actors - Groups

The innovation network of the firm

Consultants

A
  • innovative concepts
  • structuring of processes
  • financial, legal and insurance services
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15
Q

Actors - Groups

The innovation network of the firm

Distributors

A
  • changing and weighting of demands

- gathering information about developments

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16
Q

Network horizon

A

denote how extended an actors view of the network is

  • > horizon of an actor changes over time as a consequence of doing business
  • > any business network boundary depends on perspective
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17
Q

Network context

A

part of the network within the horizon that the actor considers relevant

  • > actors: who are they and how are they related to each other
  • > activities: performed in the network and how they are linked to each other
  • > resources: used in the network and patterns between them
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18
Q

Network identity

A

meant to capture the perceived attractiveness (or repulsiveness) of a firm as an exchange partner due to its unique set of connected relations with other firms, links to their activities, and ties with their resources
-> refers to how firms see themselves in the network and how they are seen by other network actors

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19
Q

Actors - types

What is obvious and what is interesting about actors?

A

The obvious thing about actors:

  • they are all optimizing
  • they are all profit oriented
  • they need resources

The interesting thing about actors:

  • How do they want to make a profit?
  • What do they need our resources for?
20
Q

Actors - types

Example

A

Customer types:

  • Type: Ecologist
  • Basis of evaluation: CO2 quotes, CSR
  • When they say solution, they mean: environmentally friendly
  • Type: Price chaser
  • Basis of evaluation: price
  • When they say solution they mean: cheap
21
Q

What is VRIN used for?

A

Analyzing competencies

22
Q

What does VRIN stand for?

A

Valuable
Rare
In-Imitable
Non-substitutable

23
Q

VRIN

Competitive disadvantage

A

Not valuable

24
Q

VRIN

Competitive parity

A

valuable

not rare

25
Q

VRIN

Short-term competitive advantage

A

valuable
rare
not in-imitable

26
Q

VRIN

Long-term competitive advantage

A

valuable
rare
in-imitable
non-substitutable

27
Q

Activities of firms

The essential business processes

A
  • a business is an activity or a process that turns available inputs into outputs that customers desire
  • the business must secure the necessary inputs, it must transform the supplies into outputs and it
28
Q

Activities of firms

The essential business processes

Which processes are there?

A

Procurement
Transformation
Commercialisation
(accompanied by leadership and support functions)

29
Q

Activities of firms

The essential business processes

Procurement

A
  • all resources needed in the firm must be procured: financial resources, Human Resources, physical resources, intellectual property, information resources
  • also called purchasing or sourcing
30
Q

Activities of firms

The essential business processes

Transformation

A
  • all of the processes in a firm that bundle and change the procured resources into offerings, i.e. what the firm sells to the customers
31
Q

Activities of firms

The essential business processes

Commercialisation

A
  • all processes related to understanding customer needs, convincing customers of a firm’s offerings, and finalizing an agreement
  • traditionally referred to as marketing and sales
32
Q

Activities of firms

The essential business processes

Success criteria

A

Sourcing productivity
-> amount of resources per Euro

Production productivity
-> Amount of offerings per resource unit

Commercializing productivity
-> Euro per offering

33
Q

Network configuration and innovation success

Network configuration

A

Intensity of Technological Interweavement

Pattern of technological Interweavement

34
Q

Network configuration and innovation success

Network configuration

Technological interweavement

A

describes the totality of a firm’s technology-oriented relationships aimed at acquiring, jointly developing of diffusing of technological know-how and resources

35
Q

Network configuration and innovation success

Network configuration

Patterns

A

formed concerning importance of collaboration with each specific type of partner in relation to the overall importance of networking

36
Q

Network configuration and innovation success

Innovation success

A

Product innovation success

  • improvement of products
  • new product development

Process innovation success

  • technical
  • economic relevance
37
Q

Network configuration and innovation success

Which network configurations are there?

A 
Island
Manufacturer
Toddler
Highway
Visionary
Competence acquirer/apart the market
Spider
38
Q

Network configuration and innovation success

The island

A

Intensity:
- below average

Pattern:
- only regards its customers to be equally as important as other partners

39
Q

Network configuration and innovation success

The manufacturer

A

Intensity:
- below average

Pattern:

  • interacts with suppliers and customers much more intensively than with universities and consultants
  • overall interaction with external partners is low
40
Q

Network configuration and innovation success

The toddler

A

Intensity:
- below average

Pattern:
- relatively more emphasis on collaboration with universities than on supplier interaction

41
Q

Network configuration and innovation success

The highway

A

Intensity:
- above average

Pattern
- same as the manufacturer: interacts with suppliers and customers much more intensively than with universities and consultants (but higher degree of interaction than manufacturer)

42
Q

Network configuration and innovation success

The visionary

A

Intensity:
- above average

Pattern:
- same as toddler: interacts with universities at a high level and regards its customers as more important than its suppliers and consultants

43
Q

Network configuration and innovation success

The competence acquirer (the apart the market)

A

Intensity:
- low to very high

Pattern:
- same as highway: high importance of consultants, lowest importance: suppliers

44
Q

Network configuration and innovation success

The Spider

A

Intensity:
- above average

Pattern:
- interacts with all the network partners at a very high level

45
Q

Network configuration and innovation success

Findings

A
  • different configurations for improvement of products and new product development needed
  • technological interweavement is important for increasing product innovation success
  • customer-orientation and university interaction lead to highly innovative products
  • network as a whole must be taken into account when analyzing technological networks
  • > synergies between supplier and customer interaction that makes product improvements more successful
  • customer orientation is critical for product innovation success, but is not the isolated cooperation with customers which ensures product innovation success
  • process innovation success needs multi-dimensional cooperation with multiple actors as well
  • > only high intensity of interweavement is not sufficient for process innovation success
46
Q

Relationships are connected

Three options of connectedness

A

No impact:
- existence of relationship y is independent from the existence of relationship x

Positive impact on connection:

  • existence of x is supporting, enabling or even enforcing the existence of y
  • e.g. product is developed by A and F and sold to B

Negative impact:

  • existence of x is hindering, disabling or even excluding the existence of y
  • e.g. caused by resource limitations (e.g. company is only able to have one partner in new product development due to exclusive rights)
47
Q

Relationships are connected

Key learnings

A
  • a firm has to be aware of the effects of its relationship with any one firm on its other relationships
  • a firm’s relationships can be influenced by relationships in which the firm is not directly involved
  • networks cannot be managed in isolation

Cooperation & Networks (4 decks)

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