Managing the network as a distinctive relational capability of the central firm

My study contributes to our understanding of the relational capabilities that ‘central firms’ leverage in order to manage networks of interfirm collaborative relationships (ICRs) as sources of sustainable competitive advantage. The empirical basis consists of three longitudinal case studies of design-intensive furnishings manufacturers, successfully competing by leveraging a network of knowledge-intensive joint-design ICRs with numerous design firms. Over a 30-years time span, two distinctive relational capabilities are shared by the successful central firms: (1) the capability to create and preserve a ‘dual’ network architecture over time, integrating a large ‘periphery’ of weak ties with a smaller ‘core’ of strong ties; and (2) the capability to manage the network evolution, relying on weak ties both to initially pave the way for change and to subsequently bring about network renewal.