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A partnership vs. business networks

According to Forström (2005) a partnership we see as a high – involvement relationship characterized by something referred to as “closeness”. Closeness should be regarded as degrees of integration and go futher into proposing involvement as a relevant concept when discussing partnerships. She concludes that involvement has three dimensions: coordination and activities, adaptations of resources, and interaction among individuals. In summary, a partnership should be characterized by involvement along the lines of activities, resources and individuals. A partnership is one relationship management strategy – a strategy among others – with the ultimate aim of doing profitable business. The logic of partnership is that working together, cooperating, being interdependent and creating and exploiting interdependencies with a business partner and it means to do profitable business in the long run.
A business network, explains Elo (2005), is a set of two or more connected business relationships. Two connected relationships of interest themselves can be both directly and indirectly connected with other relationships that have some bearing of them, as part of a larger business network. There are three essential elements of business networks – activities, resources and actors. In total, the business networks represent area of networking. The complex nature of business networks makes it difficult to classify and compare them.
There are differing viewpoints on the different types of networks:

• 
  industrial networks – consist of relationships. From the viewpoint of theory, the relationships are also called dyads – the existence of the secondary functions means that they are also parts of networks.
  
• 
  social networks
  
• 
  networks – can be seen as market, groupings of firms or organizations
  
• 
  networks – can be of a diffuse character, representing new forms of organization
  
• 
  networks – can be categorized as :
  

1. 
   vertical networks are co – operative relationships between suppliers, producers and buyers aiming to the solution of marketing problems, improved production efficiency or exploitation of market opportunities. Subcontracting relationships are also considered as networks.
   
2. 
   horizontal networks – often include co-operation among competitors, they may be partially competitive and partially co – operative i.e. co – opetitive networks. Ghauri et al. (2003) define horizontal network as co – operative network relationships among manufacturers that want to solve a common marketing problem, improve production efficiency or exploit a market opportunity through resource mobilization and sharing. Export grouping nets are a good example of such networks.
   

• 
  networks – are of an increasingly non – domestic character. They overcome borders and regions.
  
• 
  cross cultural business networks
  

According to Vodáček and Vodáčková (2004) and Ubrežiová (2006), the development of networks was very speedy. The business chains from the standpoint of this study have own hinterland and support in the managerial accesses including:

• 
  “just in time” – JIT
  
• 
  “total quality management” – TQM
  
• 
  “supply chain management” – SCM
  
• 
  “customer relationships management” – CRM
  
• 
  “business process reengineering” – BPR
  

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In accordance with other authors we argue that the networks have “common

ground” and “core firm”.
Position in a business net is defined by the characteristics of the company´s relationships and the benefits and commitments that arise from them.
Network effect is an impact, including effects in the relationships, effects on the relationships, effects on a portfolio and effects on a network.
Interconnectedness in business context emphasizes that each firm is dependent on resources controlled by other firms.
Autonomy – A legally independent firm in a business network is influenced by the interconnectedness and embeddedness which may reduce its autonomy.
Interdependency influences the activities and decision making of industrial firms where business network has a broader meaning as a configuration of actors.

By Kjellmann et al. (2004) theoretically and practically, the analysis of business network will be submitted by network horizon, network context, and network identity.

• 
  network horizon explains how extended an actor´s view of the network is. Factors influencing the view are expierence, structural features, and connectedness.
  
• 
  network context determinates the actors who they are and how they related to each other; the activities, what activities are performed and the ways in which
  

they are linked together; and the resources, what resources are used and the ₃₁
pattern of adaptation between them.

• 
  network identity refers to how the firms see themselves in the network and how they are seen by the other actors.
  
• 
  another aspect in analysis is the network role of an actor. Defined roles are the architect, the lead operator, and the caretaker.
  

A lot of researches have been done concerning the networks of large corporations, multinational companies and alliances. The creation, development and entrepreneurial environment introduce the process of globalization of market and production with regard to the both, the EU countries and the world. Technically, it is affected by development of information and communication technologies. The theory deals with process of the establishment and development of the supplier – customer relationship overtime according to the variables of experience, uncertainty, distance (including aspects of social, geographical, cultural, technical and temporal distance), commitment and adaptations. Partnerships in industrial networks are strategic choices to organize a mutually beneficial relationship.
The internationalisation process as a part of a wider business network provides not only the related context, but also additional cultural dimensions to be understood. There are numerous aspects – social, cultural, emotional, temporal and other tacit dimensions that influence the firms´s development in the network. According to Ubrežiová et al (2005), Francesco and Gold (1998) culture can explain that in general terms, culture is a way of life of a group of people. Researchers from diverse fields, including anthropology, sociology and management have studied culture for a long time. In connection with business networks, the sources of culture have been divided into the following categories: language, nationality, education, profession, ethnic group, religion, family, sex, social class, and corporate or organizational culture.
The increasing interdependence of the global economy is heightening the need to understand how business relationships develop among company managers from different cultures. Pichanič (2005) and Ubrežiová, A. - Ubrežiová, I. - Horská, E. (2012) agree that it is a part of the international human resources. Törnroos (2002), Elo (2005) argue that culture is embedded in different types of cultural settings and contexts. Key areas of interest for business networks are how to negotiate, manage organizations, market products and services and how to adequately perceive the influential network connections and handle business relationships.
Questions for Discussion

1. 
   In accordance to the theory of international management and entrepreneurship, can you discuss about characteristics of international management and entrepreneurship? What is meant by this term? How can we divide the countries where the multinational company operates?
   
2. 
   Explain the term internationalization and globalization. What are the main factors which effected internationalization and globalization processes?
   
3. 
   How do you see the future of the world business in the terms of globalization?
   
4. 
   What are the main advantages and disadvantages of globalization?
   
5. 
   Have you ever met “globalization” in your life? In which situation?
   

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