Creating value through mutual commitment to business network relationships

A structural model of business relationship development in a business netwo rk context is formulated and tested on delta from the European Internationa l Marketing and Purchasing (IMP) project. The empirical analysis demonstrat es a causal chain from business network connection through mutual commitmen t and mutanl dependence to value creation in the relationship. The results show that mutuality in business network relationships is critical in develo ping interfirm systems of workflow interdependence that promote the creatio n of value. This also implies that, through their interaction in business n etwork relationships, firms in business markets organize and share an unbou nded structure of interdependent activities enabling them to achieve greate r value than would be the case if they did trot engage in relationship deve lopment. Copyright (C) 1999 John Wiley & Sons, Ltd.