On the starting situation for business relationship initiation in turbulent business networks

Abstract

Purpose The purpose of this study is to develop a model of a starting situation for relationship initiation in turbulent business networks. Design/methodology/approach The study is designed as an extreme single case study that takes its point of departure in a company’s bankruptcy in the Swedish automotive industry. Findings This study illustrates how a new business relationship can start from a resource combination previously controlled by one actor (i.e. a single company) in a turbulent business network, thereby bringing nuances to the common understanding that new relationships start in stable business networks where resource combinations are developed between actors in established business relationships. Originality/value Previous studies have stated that the development of a mutual orientation between actors leads to the formation of a business relationship. The business relationship then leads to resource adaptations between the two companies. The developed model, however, illustrates that this pattern can be reversed in situations of turbulence. Hence, previously adapted resources might lead to the formations of a business relationship. Based on this observation, the authors argue that there are reasons to question if previous models of business relationship initiation and development in business networks are adequately equipped for analysis in turbulent business networks.