Collaboration with Competitors in Business Networks

Many industries rely on their relationships with stakeholders. The key ingredient for partners' relationship success is collaboration and communication via electronic integration. In this context this paper aims at determining how a relation between two partners can be characterized and how the contribution of the relation to the performance can be evaluated. The subject of the study is the collaboration between furniture companies, which jointly create furnishing under a contract for the furnishing of public buildings (hotels and business offices). The aim of the present work is to develop a simple and practical model for assessing the satisfaction with collaboration of business network participants. The main factors have been identified, which strongly influence on satisfaction with collaboration in business networks. It has been found that these factors can be classified into two main groups: Climate of the relation; Structure of the relation. Relation climate is assessed using six primary measures, namely: Engagement; Confidence; Power exerted; Compatibility and Solidarity; Intensity of conflicts; Solve the conflicts. Relation structure is assessed using ten primary measures, namely: Flexibility; Formalization; Reconfiguration efforts; Control activities; Participation; Exchange information; Interdependence; Centralization of decisions; Duration; Relation Lifecycle. Approbation of the model was carried out in two furniture companies, members of the Bulgarian furniture cluster. The author has conducted a series of interviews with nine managers from the enterprises, which have a bearing on the currently implemented cooperation. From the data obtained, two conclusions were made: – In this case there is a positive attitude of collaboration, but there is still no talk of satisfaction with collaboration. – The metrics from the group “Structure of the relation” have a stronger impact on satisfaction than the metrics from the group “Climate of the relation”.