business networks as sets of
connected business relationships connections between relationships are the critical elements
in the business network view

interplay between knowledge and committeemen drives relationships and network development

strong reasons to consider management of external network structures

• Relationship development can be costly
• Firms can increase efficiency through coordination and collaboration
• Firms can become interdependent ( can control one another and loose control to each other )
• Networks reduce uncertainty
• Time and resource demanding
• Difficult to assess the degree of success of the relationship development
• Firms learn from each other and adapt their routines to each other to ensure better collaboration
  -Every firms has a unique network position ( because every firm has unique partners )

Network development to a large extent is a knowledge development process :

• Firms learn from and about each other
• Firms create new knowledge together
• Firms develop common knowledge

Conceptual elements:

• Every firm has a unique network position ( no two firms have the same partners )
• The connection that link partners to each other
  

Critical strategic points :

• Being an insider in intersting networks

Strategic change :

• Firms in a network context do
  not fully control their own resources
• Firms in a network control other firms resources
• shared ownership of intangible assets like knowledge
• Former theories think of strategic change as an internal decision when in fact it depends on the firms network
• Strategic change depended on network is also shared by the dynamic capabilities view

Strategic change :

• Dynamic capabilities are developed and adjusted to network parties
• Experiential learning process about each other ( capabilities and intensions)
• Building joint assets requires mutual trust and commitment -> facilitates informal coordination of strategic change ( informal control more efficient than formal control )
  

Successful strategy must be relevant to all independent actors and supported by mutual trust and commitment -> Network offers dynamic safety net thanks to aggregated strategy processes

Strategy development process joint action between
network partners, whether intended or not.

This paper seeks to offer a model on the evolution of the multinational business enterprise
(MBE). It is meant to be an alternative to the eclectic paradigm

An eclectic paradigm,
also known as the ownership, location, internalization (OLI) model or OLI framework, is a three-tiered evaluation framework that companies can follow when attempting to determine if it is beneficial to pursue foreign direct investment (FDI). This paradigm assumes that institutions will avoid transactions in the open market if the cost of completing the same actions internally, or in-house, carries a lower price. It is based on internalization theory and was first expounded upon in 1979 by the scholar John H. Dunning.
the existence of multinational
enterprise (MNE) as a consequence of market failure

theoretical approach that is based on economic theory may be inappropriate for studies that are relevant for individual firms.