IDEAS home Printed from https://ideas.repec.org/p/por/fepwps/224.html
   My bibliography  Save this paper

Of the significance of business relationships

Author

Listed:
  • Filipe J. Sousa

    () (Departamento de Gestão e Economia (DGE), Universidade da Madeira (UMa))

  • Luís M. de Castro

    () (Faculdade de Economia, Universidade do Porto)

Abstract

The Industrial Network Theory aims to describe and explain the business relationships and networks in which the focal firm is deeply embedded. One of its major propositions is that business relationships somehow influence, to different extents and over time, the focal firm’s survival. This pertains to the diverse and time-varying significance of business relationships for the focal firm. It has often been implicitly sustained that such significance is strongly related to the role played by business relationships and consequently the relationship outcomes accruing to the focal firm. The logic underlying the relationship significance proposition is outwardly oriented, somewhat overlooking the focal firm’s inside and in particular the conspicuous influence of business relationships on what the focal firm does competently both within and across its vertical boundaries. Arguably, the (predominantly ‘functional’) network-based arguments currently advanced represent a necessary but not sufficient condition for relationship significance. This conceptual paper tentatively suggests that there may be missing a supplementary (essentially internal) explanation supported by Competence-based Theories of the Firm.

Suggested Citation

  • Filipe J. Sousa & Luís M. de Castro, 2006. "Of the significance of business relationships," FEP Working Papers 224, Universidade do Porto, Faculdade de Economia do Porto.
  • Handle: RePEc:por:fepwps:224
    as

    Download full text from publisher

    File URL: http://www.fep.up.pt/investigacao/workingpapers/06.07.25_WP224_sousacastro.pdf
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Catarina Aroso & Aurora, A.C. Teixeira, 2006. "Local Sustainable Mobility Management. Are Portuguese Municipalities Aware?," ERSA conference papers ersa06p832, European Regional Science Association.

    More about this item

    Keywords

    Industrial Network Theory; relationship significance proposition;

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:por:fepwps:224. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: http://edirc.repec.org/data/fepuppt.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.