Exploiting knowledge across networks through reputation management

Abstract

The emerging paradigm of network competition is increasingly in evidence across many industrial sectors and provides further support for the idea that 'supply chains compete, not companies'. It can be argued that network competition requires a much greater focus on managing the interfaces that connect the individual players in that network and exchanging and leveraging knowledge across the network. This paper sets out to establish a framework whereby the critical interfaces and the knowledge sharing benefits can be identified and how the strength of the relationships at those interfaces can become the basis for building organisational reputation and create an environment more conducive to co-operation and knowledge sharing. Finally, the paper analyses the potential impact of reputational risks in influencing the perception of stakeholders about the organisation. Whilst the idea of value-adding networks based on closely connected providers of capabilities and resources is appealing, it should be recognised that, if not properly managed, the actions of the stakeholders in those networks can impact the risk profile of the business significantly-particularly reputational risk. The more that organisations become part of complex global networks, the more dependent they become upon the other network members for knowledge and other resources. Because of this dependency there is always the danger that the reputation of the focal firm can be damaged by the actions of other network members, hence reducing the likelihood of future collaborative working and knowledge exploitation. Using examples drawn from a variety of industries, the paper highlights the potential for reputational risk if the critical network interfaces are not closely managed. It will be argued that by actively managing relationships with stakeholders in the network the risk to the organisation's reputation can be mitigated and the sharing of knowledge simultaneously enhanced.

Implementing sustainability in small and medium-sized construction firms

“…Existing literature makes a clear connection between knowledge acquisition activities and TA (Roy and Thérin, 2008) and networks (Christopher and Gaudenzi, 2009). Klewitz and Hansen (2014) propose that external interaction, such as participation in TA events, can increase innovative capacity within the SME.…”

Reputation, Game Theory and Entrepreneurial Sustainability

“…Consequently, here is the source of the innovator's dilemma. As a solution for the dilemma, the entrepreneur should drive the change in search of undiscovered reputational opportunities related to entrepreneurial sustainability, by actively managing relations with a growing set of stakeholders and fulfilling their demands satisfactorily [67]. As a matter of fact, the consonance between these stakeholders' expectations and the way that the entrepreneur presents and discloses the performance is crucially related to reputation [68,69], and previous researchers cite cooperation with the environment as a critical aspect to successfully build public trust and a solid reputation [70][71][72].…”

Multiple stakeholders and B2B branding in emerging markets

“…Among the different stakeholder groups, the contributing activities of customers, partners, and suppliers are specifically discussed in prior research (Ojasalo, Nätti, & Olkkonen, 2008). For example, driven by their perceptions customers can spread positive or negative word-of-mouth, which can influence corporate communications (Christopher & Gaudenzi, 2009). Moreover, through their actions and performance, channel partners and suppliers can directly affect the functional value of a brand (Mäläskä et al, 2011), as well as influence the end-users' assessment of a focal company (Morgan, Deeter-Schmelz, & Moberg, 2007).…”