A firm's competence development through its network of exchange relationships

ISSN： 0885-8624

Source： The Journal of Business and Industrial Marketing, Vol.16, Iss.7, 2001-12, pp. : 574-599

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Abstract

In discussing what a firm's competence is all about and how that is developed over time, the focus has been on how a firm develops its "core" or "distinctive" competence all by itself. The imbeddedness of a firm in networks of exchange relationships and how that impinges on the development and nurture of a firm's competence has attracted very scant study. The purpose of this study is to deepen our understanding of the extent to which a firm's networks of exchange relationships influence its competence development. Two empirical case studies have been conducted in that regard. One important conclusion is that a firm's network(s) of exchange relationships is an asset that can be exploited to develop its competence. An important implication of the study is that it takes a long time and many resources to build exchange relationships that last in our integrated markets. Many resources and skills will be needed to handle relationships, once established.