2006 Volume 15 Issue 2 Pages 39-57
This paper examines the effectiveness of the theory of structural embeddedness adopted to partnership networks analysis for studying how a firm’s partner relationships contribute to the competitive advantage. ERP package vendors, which have significant partner relationships as one of their characteristics, are analyzed as a comparative case study. First, their partnership networks are analyzed based on the Resource Based View theory, then an analysis is added based on the structural embeddedness theory which can complement a RBV’s shortfall.
The conclusions of the paper are as follows: 1) From the RBV theory’s point of view, an ERP package vendor that has open relationships structure with its partners does not have the differentiation advantage compared to an ERP package vendor that has close relationships structure with its partners 2) The former type ERP package vendor has ‘Opportunity Advantage’ compared to the latter type ERP package vendor.
That ‘Opportunity Advantage’, a capability to get more business opportunities, has been not clearly examined in the traditional RBV theory. However, to analyze partnership networks of the ERP package vendors based on the theory of structural embeddedness makes the difference clear among the ERP package vendors concerning ‘Opportunity Advantage’ capabilities.
