3.

Conceptual Framework This section deals with the conceptual framework of this study and will
present theory and related literature to the research question. 3.1. Network Theory Network theory
sees the business as a part of a network of multiple institutions that work together with each other in
order to create value. Mälardalen University – project proposal © Björn Preuss (2015) 3/5 This contains
suppliers, customers, competitors. (Hakansson & Snehota, 2006) In this set up investors can also be seen
as suppliers since they supply capital to the target firm. The approach of network theory is based on
cultural observations that showed that companies often operate in an environment with only a limited
number of actors. Studies have shown that this is more the rule then an exception. (Hakansson &
Snehota, 2006) When it comes to inter organizational relationships, a set of interdependencies evolves.
Activities of both actors are connected to each other and will influence each other. (Ford, Hakansson, &
Johanson, 1986) The network model can be summarized with the following points:  Businesses operate
often in environments where their actions are influenced by a limited number of actors which act in a
unique way with own goals.  These actors in the network engage in continues relationships and interact
with each other over time. This relates in multiple exchange processes which makes it possible to access
and exploit the resources from the counterparts. Furthermore the activities of the parties can be linked
together.  The capabilities of a company develops with its interactions and relationships with other
parties in the network. By maintaining these relationships that interactions create the identity of the
organization.  Because of the situation that all companies of the network act under the similar
conditions, the organization’s performance is conditioned by the network even when it comes to
interdependencies among third parties. (Hakansson & Snehota, 2006) It can be said that the network
theory wants to show the interdependencies between organizations and the result of this interactions
on the corporate performance.