The Capability to Manage Networks and Alliances
Having a strong product, good market research, effective marketing… all these are positive elements for a company to have. However, what ultimately undergirds them are human interactions. Without other people willing to help, or at least to collaborate with you, your enterprise will have a hard time doing much of anything.
Such positive human interactions are what is referred to as social capital. In business, companies with a strong social capital tend to demonstrate a greater ability to gather knowledge, come up with creative new ideas and take advantage of opportunities they come across. And yet, social capital remains one of the most underutilized business resources.
Given this, you should take some time to reflect on and determine both your own and your company’s social capital. Who are the people you know who might have connections to others who could open doors, lead to new markets, help you lower production costs, or help you approach potential investors?
When it comes to ITC’s Competitiveness Map, the capability to manage networks and alliances refers to managing (i.e. initiating, expanding, maintaining, reducing, and ending) relationships with different types of counterparts, including customers, suppliers, competitors, and others. It is concerned with building trust and handling conflicts in relationships, and understanding how these influence the company’s value creation, innovativeness, and productivity.