More on Networkbased Strategies

1
More on Network-based Strategies

• Specifically, building on the work of
• Benjamin Gomes-Casseres on
• Group vs Group

2
Groups are Only as Strong as the Weakest Link

• Groups are only as strong as the alliances within
  them
• Groups are made up of numerous smaller alliances
  that require focused attention
• Manage individual and small number alliances with
  care and a respect for serial equity

3
At the same time, the Whole is More than the Sum
of the Parts

• Manage the group as a whole, otherwise lost
  opportunities will abound
• The whole is more than the sum of the parts, but
  God is in the details
• Balancing particularistic and universal ties is
  demanding
• Lost opportunities can turn into network failures
  if they are numerous enough

4
Dont Overestimate Network Effects

• Its easy to overestimate how much one can do
  because network opportunities are so numerous and
  tempting
• Expand with caution because network effects can
  be helpful as well as harmful
• Maintain a strategic sense/mind about the
  attractiveness of expansion

5
Strategic Position within Networks

• Where you sit decides what you get
• Highly central positions offer great
  possibilities but demand great efforts
• Peripheral positions offer a taste of network
  possibilities but not much leverage
• Pay attention to both firm-based and group-based
  competitive advantages

6
Can you Successfully Sustain a Network-based
Strategy?

• Can you successfully manage the firm from both
  resource-based and relationship-based
  perspectives?
• Are the advantages of cooperation greater than
  the advantages of competition?
• Are you partnered with the right network members?
• Are you able to leverage your relationships to
  leverage from firm-based resources
  organizational capabilities

7
Too Early or Too Late to the Party?

• Just like firm-based competition, you can be too
  early or too late to benefit fully from
  network-based competition
• Are you setting standards and driving
  interorganizational learning within the network
• Or are you simply accepting the terms of
  cooperation and interaction set by others?