Aspects of Networking

Building up a network can be complex, people not only have to understand the network structure but also need to learn how to apply the proper strategy. According to Gilroy (1993), “This[networking] does permit to some extent practical aid in establishing efficient network structures and avoiding costly failures”(p.139). In another word, with the expansion of the network, there will be more resources available to use and more collaboration with other firms or business, in which will reduce the possibility of failure. Which I agree with the author, with the increase of supplies/resources, the chances of success increases. Therefore, acknowledge the prospective partners (Gilroy,1993)is the first step. You need to be able to identify the proper firms/business that have the same goal as you do in terms of collaboration, so the resources can be share or interchangeable base on individual needs. For instance, if company X has something company Y needs, however company Y doesn’t need anything from company X, then the network will not be formed because there are no mutual benefits.

After forming the network, the flexibility becomes the next key aspect. As Gilroy(1993) states “Network partner must learn to be flexible within the set of rules.” In another word, the best outcome is both partners get benefits from collaborating with each other. Therefore, a necessary compromise needs to be accomplished by both sides. Be flexible with the requirements and rules, adjust anything that has a conflict with each other, and to maximize the profits for both businesses.

Furthermore, when relationship/connection is established, don’t ever completely relied on your partner or so call alliances. As Gilroy (1993) explains “all strategic alliances are inherently risky… Alliances don’t work for you-you work through them”(p.140). The overall view for partnership is gaining benefit through collaboration, but the firms still operate independently. When collaborating, evaluation of the partner company must be done and be causation with alliance traps (Gilroy,1993). For instance, a background check of the company must be clear, especially on their financial, there could be a chance of they having a financial loop and your collaboration is a step they used to fix their problem.

There are still many more of the strategies and aspect regarding the business network are provided by Gilroy. You can find out more in his book Networking in Multinational Enterprises: The Importance of Strategic Alliances.

While reflecting on the reading, I have realized the importance of compromise. Not to mention how critical it can be on forming a network, even in the small collaboration we have in class, compromise can play a key role. If one’s idea is rejected by others and was stubborn to not wanted to make a change, the conflicts and argument will be created within the group. While that can just lead to a small consequence possibly just received a lower grade due to the fact that the idea is not organized. On the other hand, when it comes to a conflict between firms, the consequences can be serious. It can result in the abolishing of the contract and lead to a lost of a massive amount of money, or the failure of the collaboration leads to a reduction of reputations.

References

Gilroy, B. (1993). Networking in multinational enterprises: the importance of strategic alliances. Columbia, SC: University of South Carolina Press.