Paper info: The Boundaries of the Firm and the Relevance of their Permeability
Title
The Boundaries of the Firm and the Relevance of their Permeability
Authors
Cristina Baptista
Lisboa University
Portugal
Joao Mota
Lisboa University
Portugal
Luis de Castro
Lisboa University
Portugal
Place of Publication
The paper was published at the 27th IMP-conference in Glasgow, Scotland in 2011.
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Abstract
Abstract
In the context of industrial networks, firms are seen as actors inserted or embedded in networks of relationships, directly and indirectly connected. In a recent paper, some authors suggested that networks, or parts thereof, might be usefully classified according to the degree of (in)determinacy of the value systems in which participating firms deliberately involve themselves and the degree of innovation strategically sought, from current to renewal to emerging business nets (Möller and Svahn, 2006; Möller and Rajala, 2007). By revisiting the permeability of firms’ boundaries from a capabilities perspective, the paper suggest that generative relationships, as particular combinations of capabilities with the potential to create new artifacts, capabilities, perspectives or even actors (Lane et al, 1996; Eneroth and Malm, 2001), may operate, despite their low visibility, even in the so called current nets. It is also suggested that parts of networks, or nets, may differ in their prevalence of generative relationships thus suggesting the presence of different degrees of indeterminacy.
Keywords: generative relationships - innovation in networks - business interfaces - value nets
In the context of industrial networks, firms are seen as actors inserted or embedded in networks of relationships, directly and indirectly connected. In a recent paper, some authors suggested that networks, or parts thereof, might be usefully classified according to the degree of (in)determinacy of the value systems in which participating firms deliberately involve themselves and the degree of innovation strategically sought, from current to renewal to emerging business nets (Möller and Svahn, 2006; Möller and Rajala, 2007). By revisiting the permeability of firms’ boundaries from a capabilities perspective, the paper suggest that generative relationships, as particular combinations of capabilities with the potential to create new artifacts, capabilities, perspectives or even actors (Lane et al, 1996; Eneroth and Malm, 2001), may operate, despite their low visibility, even in the so called current nets. It is also suggested that parts of networks, or nets, may differ in their prevalence of generative relationships thus suggesting the presence of different degrees of indeterminacy.
Keywords: generative relationships - innovation in networks - business interfaces - value nets