Network management - a critical capability in dynamic economy

The fundamental question in the field of strategic management is how firms achieve and sustain competitive advantage.. Why is the network perspective important? The way economic value is created is radically changing. The importance of knowledge, technological complexity, global competition and digital information technology are driving this change. Empowered by the digital media, network organizations are expected to take the leading role in economic and social innovations. We aim to contribute to the development of network management by integrating notions from Industrial Network Theory (INT) and the Dynamic Capabilities View (DCV). The first section concerns the nature of strategic networks in a value-system framework, and the second examines network management from the perspectives of INT and DCV. The objective is to identify the basic capabilities required in managing different types of strategic nets, and to elaborate their characteristics and interrelatedness.We believe that, in order to further understanding of the dynamic capabilities required in high-velocity contexts, we have to expand our level of analysis from that of the organization to what we call strategic nets, and also to the macro networks forming their environment. The problem is the increasing methodological complexity. It seems evident that strategic nets can both create and master capabilities that are beyond the capacity of any single actor.

Keywords:

network management , strategic management , Industrial network Theory , business networks