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Cooperation & Networks > 8/9/10 - Capabilities for cooperating and networking > Flashcards

8/9/10 - Capabilities for cooperating and networking Flashcards

1
Q

What is an organizational capability?

A

“a set of skills and proficiencies needed to achieve a goal”

“a high level routine (or collection of routines)”

“‘routine’ - behavior that is learned, highly patterned, repetitious, or quasi-repetitious, founded in part in tacit knowledge - and the specificity of objectives”

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2
Q

What is an organizational capability?

Types of capabilities

A

Innovation dynamic
Ad hoc
Operational

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3
Q

What is an organizational capability?

Types of capabilities

Innovation dynamic

A

“the firm’s ability to integrate, build and reconfigure internal and external competences to address rapidly changing environments”

“the capacity of an organization to purposefully create, extend or modify its resource base”

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4
Q

What is an organizational capability?

Types of capabilities

Ad hoc

A

“organizations often have to cope with problems they are not well prepared for. They may be pushed into “firefighting mode”, a high-paced, contingent, opportunistic and perhaps creative search for satisfactory alternative behaviors”

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5
Q

What is an organizational capability?

Types of capabilities

Operational

A

“operational effectiveness ‘means performing similar activities better than rivals perform them’”

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6
Q

Elements of an organizational capability

A

Capability:

  • Resources
  • Processes
  • Outcomes

Efficiency can be measured

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7
Q

Elements of an organizational capability

Resources

A
  • tangible assets

- intangible assets

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8
Q

Elements of an organizational capability

Processes

A
  • activities

- resource transformation

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9
Q

Elements of an organizational capability

Outcomes

A
  • “soft” objectives

- “hard” indicators

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10
Q

Elements of an organizational capability

How to measure efficiency?

A

Input/€

Input/Output

€/Output

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11
Q

Collaborations need a relationship manager

What is a relationship manager?

A

A relationship manager is a person who develops actively and intensively the interaction process between firms.

This person performs important activities based on special qualifications

Matches, brings together, communicates, evaluates, selects, understands, builds bridges, translates, clarifies

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12
Q

Relationship managers have three qualifications

A

Social competence
Relationships
Network knowledge

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13
Q

Relationship managers have three qualifications

Social competence

A
  • communication skills, extraversion, conflict management skills, empathy, emotional stability, the ability to motivate, responsibility, flexibility, adaptability, self-reflectively, and sense of justice are essential to motivate relevant actors, to cooperate with them, to resolve conflict situations, and to be able to carry responsibility
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14
Q

Relationship managers have three qualifications

Relationships

A
  • needs an extensive and well-balanced set of good personal relationships with actors of the partner organizations and relevant third parties, who control significant resources
  • a person who has such person-specific relationship portfolio is able to search for, bring together, and influence actors, who are relevant for the business relationship, even beyond organizational boundaries
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15
Q

Relationship managers have three qualifications

Network knowledge

A
  • specific knowledge regarding the goals of the actors, behavior, expectations, and competencies, as well as their bonds and communication relationships with significant third parties
  • in addition, the organizational structures, strategies, decision processes, and resources of the partner organizations and of relevant third parties (e.g. customers, suppliers and competitors) should be known
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16
Q

Where are the relationship managers in the organization?

A

Relationship manager supplier:

  • CEO 42,4%
  • Sales director 38,8%
  • Sales person 12,9%

Relationship manager customer:

  • CEO 36%
  • Production director 22,7%
  • Purchasing director 18,7%
  • Purchaser 9,3%
17
Q

Relationship managers improve relationship quality

A

Regarding adaptation, customer’s trust and customer’s commitment it is best to have a Relationship manager team

18
Q

Relationship managers increase relationship value

A

Regarding sales functions (direct) and network functions (indirect) as well as overall relationship value it is best to have a relationship manager team

19
Q

Impact of relationship managers depends on relationship distance

A
  • correlation between the relationship advancement by a relationship promoter of the supplier and the relationship effectiveness is stronger in international customer relationships than in national relationships
  • > the role of a relationship promoter is especially important in international customer relationships
  • > diverse languages and dissimilar cultures create serious barriers to building and maintaining effective supplier-customer relationships
  • > in international settings relational exchange processes often are complicated by lack of trust and commitment on the side of the partners
20
Q

Network capability as a set of processes

What processes are there?

A

Relationship-specific

  • Initiation
  • Exchange
  • Coordination

Cross-relational

  • Planning
  • Organizing
  • Staffing
  • Controlling
21
Q

Network capability as a set of processes

Relationship-specific

Initiation

A

Starting activities of a relationship

-> identify potential partners and convince them to collaborate

22
Q

Network capability as a set of processes

Relationship-specific

Exchange

A

All sorts of transfers between the two companies

-> e.g. products, services, money, information, know-how and personnel

23
Q

Network capability as a set of processes

Relationship-specific

Coordination

A

Needed to be in tune with the other company - to synchronize the activities of both companies
-> coordination includes the establishment and use of formal roles and procedures and the utilization of constructive conflict resolution mechanisms

24
Q

Network capability as a set of processes

Cross-relational

Planning

A

Planning activities refer to the definition of a desirable state in the future

25
Q

Network capability as a set of processes

Cross-relational

Organizing

A

Organizing activities enables the realization of the plans developed

26
Q

Network capability as a set of processes

Cross-relational

Staffing

A

Staffing activities deal with the allocation of personnel to specific relationships and allocate responsibilities to those persons

27
Q

Network capability as a set of processes

Cross-relational

Controlling

A

Controlling activities are seen as the last management activity but also must be seen as the beginning of repeating the management process

28
Q

Network capability as skilled Human Resources

Which skills are there?

A

Specialist skills
Social skills

-> both specialist and social qualifications are needed because inter organizational relationships are built around interpersonal exchanges (social qualifications) but are based on economic and technological objectives (specialist qualifications)

29
Q

Network capability as skilled Human Resources

Specialist skills

A

Technical skills
- important for understanding the partners, their needs, and their requirements

Economic skills
- required to define inputs and set prices

Skills in legal matters
- mainly relevant to set up contracts but can be even more important in areas where partners did not agree on formal contract

Network knowledge
- includes information about other companies, their personnel and resources, which is important to unterstand the development of the network

Experiential knowledge
- received through interactions with external partners that can be used to anticipate and evaluate critical situations and to select appropriate action

30
Q

Network capability as skilled Human Resources

Social qualification / skills

A

Social qualification is the extent to which a person is able to exhibit autonomous, prudent, and useful behavior in social settings

31
Q

Elements of a company’s network competence

The ability to develop, explore and exploit business relationships

Measuring network competence

A

A company’s network competence can be measured as a two-folded construct:

  • on one hand personal qualifications (specialist and social qualifications) can be measured that enable the group of people in the company to act properly
  • on the other hand the intensity of tase execution on behalf of the company can be observed

-> Network competence offers the company the potential to effectively use inter organizational relationships

32
Q

Elements of a company’s network competence

The ability to develop, explore and exploit business relationships

Definition of network competence

A

Network competence is defined as the degree of network management task execution and the degree of network management qualification possessed by the people handling a company’s relationship

33
Q

Antecedents of network capability

What antecedents are there?

A

Access to resources
Network-oriented human resource management
Integration of communication structure
Openness of corporate culture

34
Q

Antecedents of network capability

Access to resources

A

Availability of internal resources
-> internal management resources that are necessary for handling interactions with external partners

e. g. financial resources, physical resources, informal resources
- > budgets, meeting rooms, access to information

35
Q

Antecedents of network capability

Network-oriented Human resource management

A

The process of personnel selection can be network-oriented in the sense that networking abilities and networking experiences will be explicitly a part of the job description, and the selection process itself

  • > network orientation in the described sense would lead to a higher network competence as qualified personnel will be found and attracted to work for the company within the career selection process
  • > Do we hire the right people? Incentives (incentivise the right behavior), people with social skills, do we train our people right?
36
Q

Antecedents of network capability

Integration of communication structure

A

Communication structure = information exchange between different departments within the company

The degree of interaction is called integration of communication structure

A high integration of the communication structure makes information available to the people dealing with relationships

37
Q

Antecedents of network capability

Openness of corporate culture

A

Openness of culture = emphasizing flexibility, spontaneity, and individuality (as typical characteristics of hierarchy structure)

An open culture will ensure entrepreneurial spirit within the company

Cooperation & Networks (4 decks)

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