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What is market, industry, network …

The setting, environment for management and marketing. What is market, industry, network …. No organization is an island - stakeholders. Customers. Competitors. Funders / investors. Company. Partners. Media. Suppliers. Legislators. Employees.

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What is market, industry, network …

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  1. The setting, environment for management and marketing What is market, industry,network… AnnukkaJyrämä and Katri Nykänen Aalto University School of Business

  2. No organization is an island- stakeholders Customers Competitors Funders/ investors Company Partners Media Suppliers Legislators Employees Annukka Jyrämä Aalto University School of Business

  3. Industry – clusters of companies /actors Dance Performingarts Theatre Opera Orchestras, concerts AnnukkaJyrämä Aalto University School of Business

  4. Markets, Networks, and Hierarchies Value CreatingSystem = ”Markets”For example the theaterscene in Finland HierarchyA theater Network Trust-basedcontract of alldifferenttheaters in an area * * The mixedmarket * * A Market The customers of a theater in a city * Katri Nykänen = A mix of different

  5. Market: creatingvalue– a processview Annukka Jyrämä Aalto University School of Business

  6. Taso 2 Toimiala X Makroverkosto Klusteri A Toimiala Y Klusteri C Klusteri B Toimiala Z A T T A T A Taso 1 X A T T A T T A A Yrityksen kohdeverkosto Mutual relationship Strategic network Industries, Markets and Networks(Möller et al. 2004) Industry A Level 2 Cluster Industry B Cluster Cluster Industry C Macro network Level 1 Organizations focal network

  7. Markets as networks AnnukkaJyrämä Aalto University School of Business

  8. Discussion • What is a network? • Whatisn’t a network? • How arts and networksbelongtogether

  9. Macro networks Clusters Industries Industrial networkstudies (IMP) Social networkresearch Social capital Strategic networkresearch Resoursedependency Interactionsbetweenorganizations Social exchangetheories Transactioncosttheory (TCA) The school of resources and cababilities Focalnets Strategic networks Relationships organization Networkresearch 1/2(Möller et al. 2004) Network levels

  10. Network research Networkresearch 2/2 • Social network research • "InterorganizationalTheory" • "Actor-Network Theory” • Innovation networks • Network organization research • "Policy Networks, public-private networks" • Business geographic based network research • "Comparative Studies" • Entrepreneurship research • "Industrial Network Theory“ (IMP) • Resource based networks, value networks • Knowledge research Easton & Araujo (1996)

  11. A Networkcanbedefined in manyways and in manylevels • The social relationshipsbetweenpeople • In principalanygroup of social actorscanbedefined as such a network • For examplehierarchicalorganization is a network of managers and employees • We in thiscourse • Friendships • Network is sharing resources between two or more actors • Networks between artists • Network between organizations • Network as a way of organizing, a way to lead/manage a group of actors • A networkis collaborationthat is based on long-term and trust-basedrelationshipbetweentwoormoreindependentactors Katri Nykänen

  12. Different perspectives on networks • Exchange- communication and social networks • Formal vs. informal co-operation, networking • Horizontal • E.g. between different media and advertising agencies • Vertical • Near value chain thinking: e.g. producer-, distributor co-operation AnnukkaJyrämäja Katri Nykänen

  13. Different viewpoints… • Network as a governance mode (Jones et al.1998) • Networks as structures (McEvilyand Zaheer 1999; Ahuja 2000; Reagans and McEvily 2003; Burt 2004) • Networks are a group of actors, actions and resources (Håkanssonand Snehota 1995) • Networks as relationships (Äyväri) • Networks as an efficient way to produce services and products (Möller et al. 2005; 2006; Möllerand Rajala2005; Parolini1991) Katri Nykänen

  14. Håkansson and Snehota (1993,531): key points in network theory Companies act in situations, where their actions are influenced by a limited amount of other actors. Each actor is unique and has their own goals to achieve • A company is in continunous interaction with other companies. This interaction creates the frame for exchange processes,. Relationships enable the use of other companies (actors) resrouces and joining of operations • Organizations characteristics, and key competencies , abilites adevelop in these relationships with other actors. Also, the identity of a company is build in relations to others • Since other actors from relationships act in similar circumstances, the company activity is enabled and constraint by the whole of the network. Thus, also the third party relationships influence the company actions. Annukka Jyrämä

  15. Markets, Networks and Hierarchies Markets Prices and buying contracts Relationships as a combination of the three Hierarchies Control based on authority Networks Social control

  16. Net Annukka Jyrämä

  17. Focalnet Annukka Jyrämä

  18. Network AnnukkaJyrämä

  19. JV SF SH MA LP LL HH VA AS MK PS M-LR LR ä TT RP LT RT JJ JL LR o IK SaP KT RL One sided connection Mutual connection TH Katri Nykänen

  20. Annukka Jyrämä

  21. Why networks, different perspectives • Society • Company • Organization • Management • Personnel • Customer Katri Nykänen

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