Agile Business Relationships and Technology

Purpose - To present a typology of business relationships. Design/methodology/approach - Contends that information and communication technologies (ICT) have transformed business models, suggests that business flexibility now applies to external as well as internal aspects of business management, and argues that business relationships are a vital component of business success. Depicts dyadic, tri-adic and network relationships, maintains that supply decisions are now based on integration and alignment, additional to product characteristics, and emphasizes the linkages between, and inter-dependence of, companies in a value-chain. Illustrates a relationship typology that includes horizontal, supplier, intra-industry, miscellaneous, buyer and internal relationships, describing the characteristics, and giving examples of, each type. Maintains that value systems should be seen as collective, and not zero-sum, games, underlines the importance of ICT in value-chains, and gives benefits of agile relationships that include knowledge acquisition, synergistic gains, improved time-to-market, and costs and risk reduction. Graphs a continuum of agile relationship intensity that ranges from one-off market transactions to active collaborative activities, with axes of business performance gains and embeddedness with partners, and explains six factors supporting successful relationships, i.e. strategizing, core-competences, knowledge and skills, philosophy and commitment, process integration and alignment, and business transformation. Originality/value - Advice for companies on how to manage business relationships