Chapter4

Managing relationships in networks

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INTRODUCTION

The ‘network organisation’ is a recent phenomenon that has been much analysed and commented on. These ‘virtual’ organisations are characterised by a confederation of specialist skills or capabilities provided by the network members. Such collaborative arrangements arguably satisfy customer needs at a profit more effectively than does a single firm that undertakes multiple value – creating activities. The growth of these network organisations has profound implications for relationship marketing and may potentially change the whole basis of competitive advantage.

From vertical to virtual: ...

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