BUSINESS NETWORKS

Business Networks



Business Networks

Introduction

The various relations and networks of modern life are complex. Both private and business spheres are determined by different networks, such as energy, transportation, economics, and socializing. Business life is also a complex system in the junction of different grids and lattices and, consequently, can be studied through the network perspective. However, the organization is not the only element that can be examined within the framework of networking. The fluidity and changeability of the modern world are reflected in the network structure not only in corporations but also in their environment. Even organizations specializing in very specific domains deal with a different range of people and organizations in the process of producing, marketing, and selling products and services. The aspect of specialization is also crucial for networking, as it leads to a strong dependency not only on other companies but also on human and nonhuman entities. The business environment comprised of different stakeholders, various constituting relations, and other entities, together with the corporation itself, can be studied by taking into account different networks. Business networking can be perceived in many ways.

Network Approaches: Member and Purpose

Business networking can also be studied from the network member approach. Thus, networking can be researched from the client perspective, taking into account customer networks, highlighting the relations between customers and sellers, marketing or advertising specialists, service staff, and others. The priority of supplier can be taken into account as well and, consequently, supplier networks receive primary attention. Examining the production process in greater detail, producer networks or manufacturer networks come into question, which includes the networks determining the production process. When the cooperation is to be stressed, partner networks, which include the relation between cooperating companies, receive greater notice.

Knowledge and Innovation Networks

Other types of networks can be distinguished by taking into account the aim of business activities. An organization is considered a place of creating and disseminating knowledge; thus, modern companies are often viewed in the literature as learning and knowledge-generating systems. This is also in line with the concept of the knowledge-based economy, which stresses knowledge as the tool of market competitiveness. Since companies are distributed geographically, both knowledge production and distribution involve different experts and diversified skills. The specialists representing different disciplines speed up the process of knowledge exchange and enrich the quality of business expertise. However, knowledge networks differ, depending on the relations between participants the (Johanson 2007, 90).

Cultural Differences

Although boundaries are of secondary importance in modern business networking, the issue of culture and distance is taken into account in knowledge and innovative networks; that is, in the cooperation between knowledge seekers, knowledge providers, and business innovators. Cultural differences determine the types of knowledge and innovation creation as well as their distribution. The division of business networks takes into account the cultural attitude toward goals. For example, collaborative networks value relationships and fixate on expertise and innovation. Coordinated networks appraise transactions and aim at efficiency and adaptability, with social relations of secondary ...