what is market, industry, network …
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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. - PowerPoint PPT PresentationTRANSCRIPT
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WHAT IS MARKET, INDUSTRY, NETWORK…
The setting, environment for management and marketing
Annukka Jyrämä and Katri Nykänen Aalto University School of Business 1
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No organization is an island- stakeholders
Annukka Jyrämä Aalto University School of Business 2
Company
Customers
Funders/investors
Media
Legislators
Competitors
Partners
Suppliers
Employees
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Performing arts
Industry – clusters of companies /actors
Annukka Jyrämä Aalto University School of Business
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Theatre
OperaOrchestras,
concerts
Dance
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Value Creating System = ”Markets”For example the theater scene in Finland
NetworkTrust-based contract of all different theaters in an area
HierarchyA theater
A MarketThe customers of a theater in a city
The mixed market
*
*
*
*
= A mix of different *
Markets, Networks, and Hierarchies
Katri Nykänen
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Market: creating value – a process view
Annukka Jyrämä Aalto University School of Business 5
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Industries, Markets and Networks(Möller et al. 2004)
Toimiala X
Toimiala Z
Toimiala Y
Klusteri C
Klusteri B
Klusteri A
Mutual relationship
Strategic network
T
T
T
A
A
A
AA
TX
A
T
T
T A
Yrityksen kohdeverkosto
Makroverkosto
Taso 2
Taso 1
Level 2
Level 1
Macro network
Organizations focal network
Cluster
Cluster
Cluster
Industry A
Industry B
Industry C
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Markets as networks
Annukka Jyrämä Aalto University School of Business
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Discussion
1. What is a network?
2. What isn’t a network?
3. How arts and networks belong
together
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Network research 1/2 (Möller et al. 2004)
Industrial network studies (IMP)
Social network research
Social capital
Strategic network research
Resourse dependency
Interactions between organizations
Social exchange theories
Transaction cost theory (TCA)
The school of resources and cababilities
Macro networksClustersIndustries
Focal nets
Strategic networks
Relationships
organization
Network levels
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Network research 2/2
Social network research "Interorganizational Theory" "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)
Network research
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A Network can be defined in many ways and in many levels1. The social relationships between people
In principal any group of social actors can be defined as such a network
For example hierarchical organization is a network of managers and employees
We in this course Friendships
2. Network is sharing resources between two or more actors Networks between artists Network between organizations
3. Network as a way of organizing, a way to lead/manage a group of actors A network is collaboration that is based on long-term and trust-based
relationship between two or more independent actors
Katri Nykänen
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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
Annukka Jyrämä ja Katri Nykänen
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Different viewpoints…
1. Network as a governance mode (Jones et al.1998)2. Networks as structures (McEvily and Zaheer 1999;
Ahuja 2000; Reagans and McEvily 2003; Burt 2004)3. Networks are a group of actors, actions and
resources (Håkansson and Snehota 1995)4. Networks as relationships (Äyväri)5. Networks as an efficient way to produce services
and products (Möller et al. 2005; 2006; Möller and Rajala 2005; Parolini 1991)
Katri Nykänen
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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
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Markets, Networks and Hierarchies
Relationships as a combination of the
three
MarketsPrices and
buying contracts
HierarchiesControl based on authority
NetworksSocial control
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Annukka Jyrämä
Net
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Focal net
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Annukka Jyrämä
Network
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IK
MA
SF
JV
SH
SaP
AS
RT
MK
LL
M-LR
RP
JL
KT
TH
LR o
One sided connectionMutual connection
RL
HH
LT
VA
LP
PS
LR äTT
JJ
Katri Nykänen
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Annukka Jyrämä
GALLERY
MEDIA
MUSEUMS
ARTISTS
ARTSCHOOLS
STATE OFF.
CUSTOMERS
OTHERGALLERIES
CRITICS
Strong relationWeak relation
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Why networks, different perspectives
Society Company Organization Management Personnel Customer
Katri Nykänen