The managerial challenge of business interaction: behind the market façade

Abstract

Purpose – The purpose of this paper is to address three aspects of the managerial challenge that arises from the process of business interaction: the diversity of interaction; the dynamic effects of interaction; and the integration of interaction into company operations and strategy. The paper develops a typology which characterizes different types of interaction in order to identify the managerial issues they represent. Design/methodology/approach – The paper is based on the empirical research programme of the IMP Group (impgroup.org) and on a recent large scale research project within that programme. Findings – The paper seeks to identify the dynamic effects of each type of interaction on the resources and activities involved in it and address the implications that these effects have for management. Finally, the paper discusses how the challenges and opportunities presented by business interaction can be integrated into the general management of a company. Research limitations/implications – The paper is mainly based on detailed empirical observations focusing some special features. Focusing other aspects would give another result. Practical implications – Important for all companies having important business relationships. Originality/value – Gives a new view of managerial challenges related to the variety in business relationships.