Changes in industrial network logics: the case of the Japanese retail industry

Abstract

Purpose This study aims to examine changes in “network logics” that refer to cognitive views socially accepted by actors about the network. These logics provide organizations with templates on how to act in business networks. This study investigates the causes and processes of network logic changes and the phases in the changes. Design/methodology/approach This study relies on content analysis using text data from newspaper articles on global retailers entering the Japanese retail industry. Three different logics were found to describe the actions of the retailers. Two of the logics are related to institutional and strategic logics including network logics, while the third is associated with institutional works that mean actions to create, maintain and disrupt institutions. Findings With regard to transitions in network logics in the Japanese retail industry, the analysis identified four phases: politicization, reflection, establishment and evaluation. Changes in regulative and normative logics were resulted from institutional works of the global retailers into the Japanese market. The findings also include empirical description about how network changes progress through interactions among business actors. Additionally, compared to the regulative and normative logics, it would be difficult to influence the cultural-cognitive logics. Originality/value Business networks often transform with changes in network logics. This study contributes to the literature on industrial network changes by exploring the interactions between macro-level structural states and micro-level events in network logic transitions.