From network pictures to network insight in solution business – the role of internal communication
Ryynänen, Harri (2013-02-08)
Väitöskirja
Ryynänen, Harri
08.02.2013
Lappeenranta University of Technology
Acta Universitatis Lappeenrantaensis
Julkaisun pysyvä osoite on
https://urn.fi/URN:ISBN:978-952-265-373-4
https://urn.fi/URN:ISBN:978-952-265-373-4
Tiivistelmä
Operating in business-to-business markets requires an in-depth understanding on business
networks. Actions and reactions made to compete in markets are fundamentally based on
managers‘ subjective perceptions of the network. However, an amalgamation of these
individual perceptions, termed a network picture, to a common company level shared
understanding on that network, known as network insight, is found to be a substantial
challenge for companies. A company‘s capability to enhance common network insight is even
argued to lead competitive advantage. Especially companies with value creating logics that
require wide comprehension of and collaborating in networks, such as solution business, are
necessitated to develop advanced network insight. According to the extant literature,
dispersed pieces of atomized network pictures can be unified to a common network insight
through a process of amalgamation that comprises barriers/drivers of multilateral exchange,
manifold rationality, and recursive time. However, the extant body of literature appears to
lack an understanding on the role of internal communication in the development of network
insight. Nonetheless, the extant understanding on the amalgamation process indicates that
internal communication plays a substantial role in the development of company level network
insight.
The purpose of the present thesis is to enhance understanding on internal communication in
the amalgamation of network pictures to develop network insight in the solution business
setting, which was chosen to represent business-to-business value creating logic that
emphasizes the capability to understand and utilize networks. Thus, in solution business the
role of succeeding in the amalgamation process is expected to emphasize. The study
combines qualitative and quantitative research by means of various analytical methods
including multiple case analysis, simulation, and social network analysis. Approaching the
nascent research topic with differing perspectives and means provides a broader insight on the
phenomenon. The study provides empirical evidence from Finnish business-to-business
companies which operate globally. The empirical data comprise interviews (n=28) with
managers of three case companies. In addition the data includes a questionnaire (n=23)
collected mainly for the purpose of social network analysis. In addition, the thesis includes a
simulation study more specifically achieved by means of agent based modeling.
The findings of the thesis shed light on the role of internal communication in the
amalgamation process, contributing to the emergent discussion of network insights and thus
to the industrial marketing research. In addition, the thesis increases understanding on internal
communication in the change process to solution business, a supplier‘s internal
communication in its matrix organization structure during a project sales process, key barriers
and drivers that influence internal communication in project sales networks, perceived power
within industrial project sales, and the revisioning of network pictures. According to the
findings, internal communication is found to play a substantial role in the amalgamation
process. First, it is suggested that internal communication is a base of multilateral exchange.
Second, it is suggested that internal communication intensifies and maintains manifold
rationality. Third, internal communication is needed to explicate the usually differing time
perspectives of others and thus it is suggested that internal communication has role as the
explicator of recursive time. Furthermore, the role of an efficient amalgamation process is
found to be emphasized in solutions business as it requires a more advanced network insight
for cross-functional collaboration. Finally, the thesis offers several managerial implications
for industrial suppliers to enhance the amalgamation process when operating in solution
business.
networks. Actions and reactions made to compete in markets are fundamentally based on
managers‘ subjective perceptions of the network. However, an amalgamation of these
individual perceptions, termed a network picture, to a common company level shared
understanding on that network, known as network insight, is found to be a substantial
challenge for companies. A company‘s capability to enhance common network insight is even
argued to lead competitive advantage. Especially companies with value creating logics that
require wide comprehension of and collaborating in networks, such as solution business, are
necessitated to develop advanced network insight. According to the extant literature,
dispersed pieces of atomized network pictures can be unified to a common network insight
through a process of amalgamation that comprises barriers/drivers of multilateral exchange,
manifold rationality, and recursive time. However, the extant body of literature appears to
lack an understanding on the role of internal communication in the development of network
insight. Nonetheless, the extant understanding on the amalgamation process indicates that
internal communication plays a substantial role in the development of company level network
insight.
The purpose of the present thesis is to enhance understanding on internal communication in
the amalgamation of network pictures to develop network insight in the solution business
setting, which was chosen to represent business-to-business value creating logic that
emphasizes the capability to understand and utilize networks. Thus, in solution business the
role of succeeding in the amalgamation process is expected to emphasize. The study
combines qualitative and quantitative research by means of various analytical methods
including multiple case analysis, simulation, and social network analysis. Approaching the
nascent research topic with differing perspectives and means provides a broader insight on the
phenomenon. The study provides empirical evidence from Finnish business-to-business
companies which operate globally. The empirical data comprise interviews (n=28) with
managers of three case companies. In addition the data includes a questionnaire (n=23)
collected mainly for the purpose of social network analysis. In addition, the thesis includes a
simulation study more specifically achieved by means of agent based modeling.
The findings of the thesis shed light on the role of internal communication in the
amalgamation process, contributing to the emergent discussion of network insights and thus
to the industrial marketing research. In addition, the thesis increases understanding on internal
communication in the change process to solution business, a supplier‘s internal
communication in its matrix organization structure during a project sales process, key barriers
and drivers that influence internal communication in project sales networks, perceived power
within industrial project sales, and the revisioning of network pictures. According to the
findings, internal communication is found to play a substantial role in the amalgamation
process. First, it is suggested that internal communication is a base of multilateral exchange.
Second, it is suggested that internal communication intensifies and maintains manifold
rationality. Third, internal communication is needed to explicate the usually differing time
perspectives of others and thus it is suggested that internal communication has role as the
explicator of recursive time. Furthermore, the role of an efficient amalgamation process is
found to be emphasized in solutions business as it requires a more advanced network insight
for cross-functional collaboration. Finally, the thesis offers several managerial implications
for industrial suppliers to enhance the amalgamation process when operating in solution
business.
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