Industrial Marketing
Chapter 18 : Business Networks and Technology
<< Previous Chapter
+Business Networks in Industrial Marketing
Industrial Network Model
+Relationships in Business Networks
Economic and Social Dimensions of a Relationship
Development of Interactions and Relationships
+Technology and Business Networks
Technology Management in Business Networks
+Information Technology in Industrial Marketing
Online Marketing
Electronic Marketplaces
E-collaborations
Chapter Summary
A set of two or more connected business relationships is
referred to as a business network. Firms in a business network have direct
(primary) relationships with their customers, suppliers, partners, etc. They
also have indirect relationships with other members. A change at one end of the
business network can have repercussions on firms at the other end of the
network.
The industrial network model consists of actors, activities, and resources that
depend on each other to perform their functions. The relationships between the
members of a business network may be understood in terms of their economic and
social dimensions, in addition to their structural linkages. The quality of
network interactions and relationships depend on the following aspects – value
of the interaction, degree of common interests, specificity, level of
inconsistency, and the long-term nature of the interaction.
Technology plays an important role in the success of a business network.
Industrial firms make use of product technology, process technology, and market
technology. The development, adaptation, existence, use, and commercial
exploitation of any technology are all embedded in the context of the business
network.
This embeddedness leads to a few issues in technology management that are
relevant to network relationships. The issues are – management of knowledge,
extent of control, impact of change, and need for bundling. Technological
development also affects the existing relationships among network members.
Industrial marketing has undergone tremendous changes thanks to developments in
technology. Information technology has led to the e-marketing of industrial
products and services. The e-marketing initiatives like online marketing and
e-marketplaces have benefited both industrial marketers and their customers.
Innovations such as reverse auctions have given industrial customers a wide
choice in the selection of suppliers and also reduced the cost of procurement.
The Internet and extranet have enhanced e-collaborations by which enterprises
and their units can share information, work together, and effectively coordinate
the utilization of resources. On the whole, technology has a profound impact on
industrial marketing and the development, growth, and efficient functioning of
business networks.
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