Global Alliance Networks: A Comparison of Biotech SMEs in Sweden and Australia

 
Leyland Pitt*

Simon Fraser University

Rian van der Merwe

eBay

Pierre Berthon

Bentley College

Esmail Salehi-Sangeri

Division of Industrial Marketing, and PhD. Program in E-Commerce

Lulea University of Technology

Albert Caruana

Centre for Communication Technology

University of Malta

Forthcoming: Industrial Marketing Management

Abstract

The role of networks in business operations is widely recognized. We discuss social network theory, identify its main constituents, and outline a methodology and procedure that enables the identification and valuation of informal networks in an international business-to-business environment. Research is carried on informal Internet networks among firms in the biotechnology industry from Sweden and Australia. We use the methodology to recognize salient nodes, determine prominence and identify structural holes that allow the unveiling of brokerage opportunities that lie latent in networks. Global firms and suppliers of industrial products that are or can position themselves effectively in a social network are in a position to leverage considerable value.