Where do we go from here? The future of B2B governance research.

Purpose This paper aims to identify promising areas for future business to business (B2B) governance research. Design/methodology/approach This paper uses a theoretical approach. Findings Most governance research in marketing is conducted within the context of value chains (Porter 1985). There are great opportunities for governance researchers in marketing to improve the understanding of B2B relationships in problem solving and networking services. Moreover, rapid innovations taking place in networking services are changing the institutional environment across all forms of value creation. This in turn impacts how the nature and governance of relationships in the broader economy are understood. Originality/value The literature on B2B relationship governance is primarily rooted in one particular form of value creation, namely, the “value chain” (Porter, 1985). The authors examine whether the current conceptualization of B2B relationship governance is equally applicable for firms that have a different value creation logic and therefore engage in exchange relationships that differ in their object of exchange.acceptedVersio

Multi-criteria decision analysis in Bayesian networks-Diagnosing ecosystem service trade-offs in a hydropower regulated river

The paper demonstrates the use of Bayesian networks in multicriteria decision analysis (MCDA) of environmental design alternatives for environmental flows (eflows) and physical habitat remediation measures in the Mandalselva River in Norway. We demonstrate how MCDA using multi-attribute value functions can be implemented in a Bayesian network with decision and utility nodes. An object-oriented Bayesian network is used to integrate impacts computed in quantitative sub-models of hydropower revenues and Atlantic salmon smolt production and qualitative judgement models of mesohabitat fishability and riverscape aesthetics. We show how conditional probability tables are useful for modelling uncertainty in value scaling functions, and variance in criteria weights due to different stakeholder preferences. While the paper demonstrates the technical feasibility of MCDA in a BN, we also discuss the challenge

Considering clustering measures: third ties, means, and triplets

Measures that estimate the clustering coefficients of ego and overall social networks are important to social network studies. Existing measures differ in how they define and estimate triplet clustering with implications for how network theoretic properties are reflected. In this paper, we propose a novel definition of triplet clustering for weighted and undirected social networks that explicitly considers the relative strength of the tie connecting the two alters of the ego in the triplet. We argue that our proposed definition better reflects theorized effects of the important third tie in the social network literature. We also develop new methods for estimating triplet, local and global clustering. Three different types of mathematical means, i.e. arithmetic, geometric, and quadratic, are used to reflect alternative theoretical assumptions concerning the marginal effect of tie substitution

Linking intangible resources and competition

Recent strategy literature suggests that intangible resources -- in particular competencies and relationships -- are critical drivers of competitive advantage. However, there seems to be a lack of understanding of when certain types of competencies and relationships are most critical. This paper introduces a framework consisting of three fundamental levels of resource-competition. The framework is illustrated through the pharmaceutical industry. We argue that (1) biotech firms mainly engage in entrepreneurial competition; (2) traditional pharmaceutical firms -- here referred to as big-pharma -- increasingly undertake contractual competition and, finally, (3) generic drug makers compete predominantly operationally. The paper argues that intangible resources contribute differently to competitive advantage depending on level of competition.

Strategic action in network industries: an empirical analysis of the European mobile phone industry

This paper investigates the strategic moves of European mobile phone operators during the early development of the industry. Drawing on the literature on competitive dynamics and markets externalities, we study the strategic actions taken by mediators, i.e., firms based on a mediating technology such as phone operators (Organizations in Action, McGraw-Hill, New York, 1967; Strat. Manage. J. 19(5) (1998) 413). As expected, market penetration, concentration, and time evolution drive the likelihood of inter-firm cooperation and the types of strategic action taken by firms in this network industry. The results confirm the unique characteristics of the value network configuration with regard to how mediators create value, the primary activities that they perform, and the combination of competitive and cooperative conduct in this type of industry

Transaction organizations and transaction cost analysis: A theoretical investigation of the domain-expansion decisions of firms employing a mediating technology

We use the theory of network externalities in applying transaction cost economics (TCE) to inter-mediator transactions. We propose network specificity as an additional form of asset specificity associated with such transactions. Specifically, we identify and analyze two integration decisions that are distinctive to mediators and that both depend on network specificity: the network integration of nodes and the vertical integration of complement exchange activities. We derive some implications of this for managerial practice, public policy and further research.Transaction cost analysis Mediation industries Network externalities

Strategic action in network industries: an empirical analysis of the European mobile phone industry

This paper investigates the strategic moves of European mobile phone operators during the early development of the industry. Drawing on the literature on competitive dynamics and markets externalities, we study the strategic actions taken by mediators, i.e., firms based on a mediating technology such as phone operators (Organizations in Action, McGraw-Hill, New York, 1967; Strat. Manage. J. 19(5) (1998) 413). As expected, market penetration, concentration, and time evolution drive the likelihood of inter-firm cooperation and the types of strategic action taken by firms in this network industry. The results confirm the unique characteristics of the value network configuration with regard to how mediators create value, the primary activities that they perform, and the combination of competitive and cooperative conduct in this type of industry.Network industries Competitive dynamics Value-creation analysis