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Powergraph — a network-based approach to modelling and managing corporate strategic conflict and co-operation

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  • J H Powell

    (Bath University)

Abstract

Strategic relationships between companies are characterised by a combination of conflict and co-operation. Often the behaviour of partner/rival companies will appear arbitrary, almost irrational because of the necessary limitations on communication between the parties. Understanding, predicting and managing situations such as major project teamings or acquisition struggles is essential for the satisfactory governance of companies but existing conflict modelling has proven less than attractive to practitioners and their advisors. A network-based approach known as Powergraph is described in this study. It represents the corporate situation as a directed graph in which the nodes are the possible states of play. Connections between nodes are represented by logical expressions deriving from the capacities of the players individually or in coalition to bring about the transitions. By consideration of the ordinal preferences of the participants, trajectories of the situation can be described and these trajectories form the basis for management action and intelligence gathering. The method is illustrated by means of a real case study of three defence companies competing for two major contracts.

Suggested Citation

  • J H Powell, 1999. "Powergraph — a network-based approach to modelling and managing corporate strategic conflict and co-operation," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 50(7), pages 669-683, July.
  • Handle: RePEc:pal:jorsoc:v:50:y:1999:i:7:d:10.1057_palgrave.jors.2600762
    DOI: 10.1057/palgrave.jors.2600762
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    Cited by:

    1. Powell, John & Powell, Philip, 2004. "Scenario networks to align and specify strategic information systems: A case-based study," European Journal of Operational Research, Elsevier, vol. 158(1), pages 146-172, October.
    2. Powell, J. H., 2001. "Blackmailing the mayor: Using semi-formal state-based game theory methods to inform a security situation," European Journal of Operational Research, Elsevier, vol. 134(2), pages 330-345, October.

    More about this item

    Keywords

    strategy; game theory; networks;
    All these keywords.

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