The Importance Of Business Relationships

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2.1 Relationships Relationships can be described from varied perspectives. An often used way to structure relationships is to outline what kind of exchanges and activities are involved in the rela-tionships. They can also be seen from a more political perspective and so-cio‐psychological view, be putting a focus on the individual parties. Additionally, they can be analyzed by their technical importance and content. All of those settings have a focus on core elements of a typical business setting. However, they can also be seen from an economic point of view, which describes the origins and types of benefits and costs from such relationships (Holmlund, 1997). The definition preferred by the author of this paper is e.g. mentioned by Holmlund…show more content…
2.3.1 Adaption Joint adaptions of any kind are generally necessary, for to maintain and develop of business networks between organizations. The form of adaption can be perpetual and different forms, to coordinate the actions between involved companies and people. This adaption can be products, services, business processes, but also logistics and administra-tive activities. To fully adapt a high level of joint commitment is a prerequisite of a suc-cessful relationship in a business network (Hallen et al., 1991). 2.3.2 Cooperation or Conflict Most scholars focus on the most obvious conflict within business networks: the benefits of the relationship. But other cooperation and conflicts can also be seen over the timeframe of a business relationship and have been observed to coexist in such net-works. In networks and their involved relationships it is not mandatory to have every conflict resolved in order to have a healthy or productive relationship. On the other hand, conflicts can negatively influence the value created in business networks. 2.3.3 Social…show more content…
(1) a production layer, (2) a resource layer and (3) a social network layer. However, she also adds that the layers effect each others in very complex ways. In this example the first embedded layer shows all actors which are involved in a firms production ac-tivities within the business network. As this layer is mostly related to produced services and products, it is delimited to the value chain. The second layer adds all actors which provide important resources necessary to be successful with the services or production. Besides the actors of the company, this layer includes also consultants, agents, banks, and others. Accordingly, its consists of more parties than the production layer. It is a web which interconnects company actors with resource actors and thus combines both networks. The human actors within a business network are represented through the third layer. The social network layer connects people on an individual level and shows how humans or group humans are important as transfer unit and users of knowledge. This layer is strongly related to the social interaction process characteristic of a business

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