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Why networks, different perspectives Society Company Organization Management Personnel Customer
Katri Nykänen
Why networks?
Synergy Knowledge Innovation Resources Complexity of service production New types of services Peer support Reputation
Katri Nykänen
Actors
Resources Activities
Actors own and control resources
Actors perform activities
The activities shape the resources and join them together
(Håkansson 1987)
NETWORK
Public sector networks Policy networks
In the legislation level networks exist since the laws are seen as a joint effort and not only the test of public government.
Policy networks exist, because the actors communicate and share resources on continuous basis
Policy networks include actors from private and third sector in addtion to the public actors (Rhodes 1981; Rathemayer and Hatmaker 2008)
The actors include public offices, companies and non profit organizations
The actors from private and third sector are motivated to participate in the policy networks because the laws and policies will effect them
Usually these networks concentrate in one field, for example heath care, energy, environment
Public sector networks Collaboration level In this level the networks concentrate on implementing through service
production what the policy networks have The service requirements and the production of services are so complex
that new ways of producing services are required The management of new services has offered two new ways to meet the
complexity of the service production is the public sector: Some public services have been privatized Collaboration networks are a new ways to organize and produce
services Collaboration networks include actors from public, private and third sector The collaboration networks enable the production of those services that
one single actors can’t produce alone due to the high price of service production and the minimizing resources of public sector (Rathemayer and Hatmaker 2008; Agranoff and McGuire 2001; Mandell 2001)
Framework for value networks, K. Möller et al.
Annukka Jyrämä Aalto University School of Business 10
Established value system, incremental improvements
Emerging value system,radical changes
Stable, well-definedvalues system
Note: Large corporations can be hubs and participants in all kinds of nets
Hospitals
Communal home help services
Caring TV concepts‘Telecare’
Elderly careresearch networks
Service houses
Communal health centers
E-HealthServices
= Describes ideal types of the values systems and their overlapping characteristics
New service offerings
New medicalaid devices
‘Smart homes’
Private medical
center chains
ICT supportsystems
Tele- and mobile diagnostics
New wellbeing center
concepts
Current Value-production Nets Renewal Nets Emerging Value-production Nets
Low level of determinationHigh level of determination
Current value-production nets Museums Theatres Traditional festivals: Not all festivals are well-
established; need network for administrative reasons; need resources
Cinema Ballett Summer Theatres: Usually work together with
schools/universities; collaborate with tourism etc.
Annukka Jyrämä
What could be the examples in arts?
Emerging Value-production NetsRenewal Nets
High level of determination Low level of determination
Stable, well-definedvalues system
Established value system, incremental improvements
Emerging value system,radical changes
Current Value-production Nets
What is needed to succesfully maintain a netwotk
1. Structures Supporting collaboration between organizations Shared premices Shared resources Shared processes
2. Culture Creating a shared goal in customer level Taking responcibility Sharing knowledge
3. Practices Shared meetings Social happening over organizational borders Tiedotteet
4. Tools Discussion methods Shared measures Computer systems and programs that support collaboration
Grandori and Soda 1995
Katri Nykänen
Two approaches to networks
The entrepreneurial networks approach (e.g. Aldrich and Zimmer, 1986; Johannisson,
1988; Johannisson, Ramirez-Pasillas and Karlsson, 2002; Larson and Starr, 1993)
The industrial networks or IMP approach (e.g. Axelsson and Easton, 1992, Håkansson and
Snehota, 1995).
Aim of the study
To deepen the understanding of capabilities needed to establish and maintain business relationships and nets
On network competence
Comprising of skills, abilities, orientations, tasks, functions, human resources, and organisation structures and systems.
Manifested in reported actions, in carrying out different kinds of activities when establishing relationships and maintaining nets
…network competence
Annukka Jyrämä
Competence Reference
Cooperation-orientation Spekman et al., 2000
An alliance mind-set Möller and Törrönen, 2003; Niemelä, 2003
Visioning capability Hill and McGowan, 1996; Möller and Halinen, 1999; Spekman et al., 2000: 83; Äyväri, 2002; Möller and Svahn, 2003; Möller, Rajala and Svahn, 2004
An ability to identify potential partners
Ritter, 1999; Ritter et al., 2002
Social skills Ritter, 1999; Walter, 1999; Baron and Markman, 2000, 2003; Spekman et al., 2000, Äyväri, 2002 Jarratt, 2004
Learning capability Lorenzoni and Lipparini, 1999; Johnson and Sohi, 2003; Niemelä, 2003; Jarratt, 2004
Coordination capability Lorenzoni and Lipparini, 1999; Ritter, 1999; Walter, 1999; Ritter et al., 2002; Äyväri, 2002.
Research Design
a multiple case study: 14 cases of owner-run micro-sized crafts firms, entrepreneurs
various types of firms: at different stages of the company life cycle, differing customers
(foreign/local, consumers/companies) and with different channel choices. similar: their business models included the idea of collaboration with
other actors in manifold ways. a variety of crafts and design fields: textile and fashion design and
production, silver- and goldsmiths, furniture design and production, carpentry, ceramics and stained-glass design.
data theme interviews with the entrepreneurs articles and other information about the companies and the
entrepreneurs, and the actors in their focal nets (web search) six expert interviews
The lead author of this paper had some prior knowledge of the field
Analysis
abductive reasoning case-by-case
1. Creating and seizing business opportunities, choice of partners and establishing relationships, maintaining relationships, coordinating operations between multiple partners, and ending relationships.
2. interpretation of the capabilities needed to perform those activities was based on the clues given by the data of the case, the theories of industrial networks and entrepreneurial networks, previous conceptualisations of relational and network competence, and the characteristics of craft knowledge and craft entrepreneurship
Confidence in networks as a system
Visioning capability
Contact-seeking capability
Ability to identify the needs of one’s own
firm, and inform other actors about
those needsAbility to utilise one’s own and
partners’ contacts in order to identify potential new
partners
The network competence of craft entrepreneurs: capabilities needed in establishing relationships.
The network competence of craft entrepreneurs: capabilities needed in maintaining relations and networks.
Social skills, social
flexibility
Customer-oriented product modification
and tailoring capability
Ability to manage time: reserving enough time to
nurture relationships
Coordination capability
Ability to take partner’s interests into consideration
Ability to share one’s own
knowledge, and accept and utilise
other actors’ knowledge
Conclusions
Capabilities needed in establishing relationships
Capabilities needed in maintaining relationships and nets
Confidence in networks as a system Visioning capability Ability to identify the needs of one’s
own firm, and inform other actors about those needs
Contact-seeking capability Ability to utilise one’s own and
present partners’ contacts to identify potential new partners
Ability to take partner’s interests into consideration
Social skills, social flexibility Ability to share knowledge, and
accept and utilise other actors’ knowledge
Customer-oriented product modification and tailoring capability
Ability to manage time: reserving enough time to nurture relationships
Coordination capability
1. Field assignment DESIGN SHOPS On 8th August, after the lectures, you are to
visit 2 design shops. The assignment is done in pairs The field assignment will introduce you to the
concept of brands and customer segments
Annukka Jyrämä
1. Field assignment DESIGN SHOPS The field assignment should proceed in the
following way Look and observe
What type of products What quality Profile of potential customers The space and surroundings
Reflect the shops image and design from the perspective of a tourist/visitor (yourself)
Compare the two design shops and their image and design
Annukka Jyrämä
1. Field assignment DESIGN SHOPS You should write a small report of 4-5 pages
of your visit You are encouraged to use pictures, video
and other methods and paterial as a part of your report
The report is due Thursday 14th August Email to [email protected] To find design shops look for example
www.designdistrict.fi
Annukka Jyrämä