Network Advantage: How to Unlock Value From Your Alliances and Partnerships
February 2014, Jossey-Bass
Companies made more than 42,000 alliances over the past decade worldwide, many of which failed to deliver strong results. This book explains why and how you can seize the benefits from your business’s network of alliances with customers, suppliers and competitors.
This network can provide three key advantages:
· superior information
· better cooperation
· increased power
Network Advantage shows how awareness of these three advantages can help align your portfolio of alliances with your corporate strategy to maximize advantages from existing networks and to position your business as an industry leader.
This book is written by three leading authorities in the field of organizational management who work with many international corporate clients. Based on groundbreaking research and illustrative cases, it provides practical tools to help you think strategically about reconfiguring your alliances and partnerships. For business executives, consultants, and executive MBAs who want to get the most advantage from the combined power of their alliance portfolios, Network Advantage offers in-depth, practical guidance. Make it your first strategic connection to gaining competitive advantage!
Companies’ connections to other firms—their network
of alliances—matter for economic success. In this
practical, jargon-free, evidence-based book, three experienced
scholar/educators provide practical tools to understand your
company’s network positioning and what to do to build webs of
relationships that provide competitive advantage and economic
—Jeffrey Pfeffer, professor, Graduate School of Business, Stanford University and co-author of The Knowing-Doing Gap.
The book, Network Advantage, presents compelling ideas
and is a must-read. It articulates three different perspectives to
think about a firm’s network advantage and shows how a firm
can maximize the value of its alliance network. The book is filled
with theoretical and practical insights on the topic and offers
captivating case studies to illustrate its key points. It is fun to
read. I highly recommend this book.
—W. Chan Kim, The BCG Chair Professor of INSEAD and the Co-director of the INSEAD Blue Ocean Strategy Institute
In this eminently researched book, the authors show how
executives and entrepreneurs alike can unlock the value of
alliances. And the book comes with some "secrets" to success that
most managers overlook. Every CEO, executive and entrepreneur who
are collaborating with other firms ought to read this book.
—Morten T. Hansen, Professor at University of California at Berkeley, author of Collaboration and co-author of Great by Choice.
Don’t compete alone! “Network Advantage”
provides a fresh perspective on how all firms can benefit from
their alliances and partnerships. The authors seamlessly
integrate academic research and real life examples into a practical
step by step guide for unleashing the power, information and
cooperation advantages available in networks. A must read for
thoughtful executives and entrepreneurs alike.
—Stein Ove Fenne, President, Tupperware U.S. & Canada
Having the "right" business network is everything for a
company's success in Asia and worldwide. With its rich cases
and practical tools, this book is
an indispensable guide for a thoughtful
executive on how to design, build and manage a network that
will make your firm globally competitive.
—Yong-Kyung Lee, Former CEO of Korean Telecom, Member of the Korean National Assembly.
Alliances and Partnerships, in their various formats and guises,
are the bridges that allow businesses to thrive in their ecosystems
by leveraging each other's strengths. The authors show how those
bridges, when used appropriately, can help your firm create an
alliance network to enhance your business power. The book contains
many examples and models to help you shape your own alliance
strategy in a world of ever increasing co-opetition.
—Ricardo T. Dias, Strategic Alliances Director, Hewlett Packard (HP) Software, Asia Pacific & Japan
Introduction All Roads Lead to London 1
Chapter 1 Network Advantage: Making the Stealth Bomber 23
Chapter 2 Comparing Network Advantage: Sony versus Samsung 49
Chapter 3 The First-Degree Perspective: Strengthening the Foundation of Network Advantage 73
Chapter 4 The Second-Degree Perspective: Understanding the Alliance Portfolio Configurations that Deliver Network Advantage 91
Chapter 5 Evaluating and Changing Your Alliance Portfolio Configuration 117
Chapter 6 The Third-Degree Perspective: Achieving the Status Advantage 143
Chapter 7 Assessing and Increasing Your Status: Extracting Energy from Waves 171
Chapter 8 Maximizing Network Advantage: Designing Your Alliance Portfolio Strategy 189
Chapter 9 Recognizing Patterns: Two Alliance Portfolio-Building Styles 207
Chapter 10 Management Practices to Sustain Network Advantage 225
Appendix One About Our Research 249
Appendix Two The Toolbox 257
Appendix Three Directory of Company Names 289
Henrich Greve is a Professor of Entrepreneurship and the INSEAD Chair of Organization and Management Theory. He holds a Ph.D. in Business Administration from Stanford University Graduate School of Business. He does research on organizational networks and learning, and he teaches strategy and organizational change for executives at the Singapore campus of INSEAD.
Tim Rowley is a Professor of Strategy and Organizations at the Rotman School of Management, University of Toronto. He teaches courses on competitive advantage and corporate governance, and his research is focused on how organizations are influenced by the network of relationships surrounding them.
Andrew Shipilov is Associate Professor of Strategy and Akzo Nobel Fellow at INSEAD. His research and teaching revolve around networks, innovation and competitive advantage. He holds a Ph.D. from the University of Toronto, Rotman School of Management.