Extending the business network approach involves the researcher’s reconsideration on what assumptions should be employed when determining what is within the boundaries of the network and what is left outside. Extending also implies that something ‘new’ is presented to the business network. What is considered ‘new’ though depends on what is recognised as established within a research field. This means that ‘new’ is not necessarily novel per se, but represents a ‘new’ direction in extending the business network approach. ‘New’ in that sense is something that provokes the researcher to challenge the assumptions on boundary-setting in the business network approach, and consequently offers alternatives supported by empirical studies or conceptual reasoning. ‘New’ can involve embarking into previously unchartered territories where the business network approach allows for alternative explanations. ‘New’ can also be what the rapid technological development brings, and where the business network approach provides deeper insight into the consequences. Furthermore, ‘new’ can be altered terms for firms and markets where research following the business network approach offers complementary views on business effects.

Contributing pioneering new research, this innovative book proposes new ways and directions in which to extend the influential ‘business networks perspective’ approach to doing business. While previous research has focused upon relationships with customers and suppliers, the authors argue that there is a need to expand the outlook to include other stakeholders. Taking a stand in a broad management perspective, chapters relate contemporary issues within industrial and international marketing, product innovation, and information systems. Challenging existing views and proposing elaborate alternatives; this volume examines a range of examples that have inspired researchers to extend the business network. To provide further understanding, Extending the Business Network Approach relates current and new research to territories, technologies and terms to reveal novel insights, and to encourage further directions for research.

Relationships between commercial actors have existed for thousands of years as highlighted by Hadjikhani and LaPlaca (2013) and Hadjikhani in the final chapter of this volume. However, research on relationships between business actors, often summarised under headings such as industrial marketing or B2B, has a more recent origin. In the words of Hadjikhani and LaPlaca (2013: 294), relationship research ‘existed in society but had little scientific identity or inquiry’. This is even truer for research on wider relationship systems, that is, business networks. However, as will be demonstrated in the present volume, the situation in the beginning of the twenty-first century is quite different. Research on business networks is lively and manifested by a large number of publications. A search for ‘business networks’ in the databases SCI-EXPANDED, SSCI and A&HCI for all years until 2015 (with the restriction that the journals publishing the papers should be classified in the Subject Category ‘Business & Economics’ in all 156 journals) resulted in 553 hits, with the first papers published in 1992. Publications then did not accelerate until the early twenty-first century with an all-time high in 2012 of 70 hits, and somewhat lower figures in the following years. However, it should be noted that the 2015 figures merely refer to the first part of the year (Fig. 2.1) and will increase.

Purpose– The purpose of this paper is to discuss how network relationships, with business as well as with non-business actors, affect each other and have an impact on strategy processes in subsidiaries in Latin America.

Design/methodology/approach– A qualitative approach is used in which a new strategy in a European multinational company (MNC) is studied at the subsidiary level in Brazil and Argentina. The authors discuss why the strategic processes are so different within the same MNC. During 2009-2011, 50 interviews were conducted with respondents in Latin America and at headquarters.

Findings– The results point to the importance of including relationships with both business and non-business actors to understand the subsidiary strategy processes. The authors suggest that such processes can be explained by interdependent relationships in a wider network context characterised by commitment and trust, leading to increased legitimacy among the actors involved.

Practical implications– Managers need to invest in relationships not only with business counterparts but also with non-business actors, as they are interdependent and vital for the strategy development.

Originality/value– Relationships between firms and actors such as governments and civil society are still under-researched, although they are essential, especially in emerging economies. The paper puts focus on network relationships in strategy research and contributes to the development of business network theory by extending the network to also include relationships with such non-business actors and relate it to strategy processes. There is also a contribution to research on corporate social responsibility activities with a specific focus on Latin America.