Proceedings of the 12th European Conference on Knowledge ...

Eva Eckenh<strong>of</strong>er
source <strong>of</strong> innovation as <strong>the</strong>y are based on collaboration, proximity and networks that result in a
process <strong>of</strong> mutual learning, emulation <strong>of</strong> positive role models and personal contacts (Ionescu, 2002).
The requirements and tasks <strong>of</strong> managing social networks go far beyond <strong>the</strong> basic understanding <strong>of</strong>
management as a function as well as an institution within a company, whose tasks and duties is <strong>the</strong>
coordination, structuring, planning, organizing, leading and control (Staehle, 1992). Holistic
Management Theory takes a step fur<strong>the</strong>r by outlining <strong>the</strong> importance <strong>of</strong> <strong>the</strong> personality qualities <strong>of</strong> <strong>the</strong>
management <strong>of</strong> firms and <strong>the</strong>ir social maturity (Porvazník, 2008). This goes in line with <strong>the</strong> importance
<strong>of</strong> certain social skills necessary for a successful work in social networks. Such social skills includes,
social perception (<strong>the</strong> ability to gauge current moods <strong>of</strong> o<strong>the</strong>rs), impression management (<strong>the</strong> ability to
change one’s appearance and image), persuasion and influence, social adaptability (<strong>the</strong> ability to
adjust to a wide range <strong>of</strong> social situations) and emotional intelligence (<strong>the</strong> ability to regulate one’s own
emotions) (Beugelsdijk and Van Schaik, 2005). These qualities, toge<strong>the</strong>r with <strong>the</strong> unwritten networklaws
trust, tolerance, discretion, respect, fairness and cooperativeness (Friedschröder, 2005) are
important for successful communication and cooperation in an organizational network.
Moreover, <strong>the</strong> success <strong>of</strong> a network is not impacted by only <strong>the</strong> networking abilities <strong>of</strong> a single
management unit, but also, <strong>the</strong> networking ability <strong>of</strong> an organization as a whole makes a contribution.
The processes, information systems, organizational structure and culture have influence on <strong>the</strong> ability
<strong>of</strong> an organization to cooperate with o<strong>the</strong>r organizations in a way that added value emerges out <strong>of</strong> this
relation (Payer, 2002).
2. Objective and methodology
The aim <strong>of</strong> this paper is to analyze network management models proposed and described in scientific
literature, in order to develop a model which is suitable for <strong>the</strong> management <strong>of</strong> formal as well as
informal networks within a company. The model has to fulfil <strong>the</strong> criteria <strong>of</strong> being practical and suitable
for <strong>the</strong> development and fostering <strong>of</strong> intellectual capital within a firm.
The empirical part <strong>of</strong> this paper analysis <strong>the</strong> findings from an expert survey which was held in spring
2008. Due to time constraints, out <strong>of</strong> a total <strong>of</strong> ten Austrian experts contacted, only nine were able to
participate in <strong>the</strong> schedule interviews. The interviews were conducted with respondents from firms
who on a daily basis work with Strategic Networking and are <strong>the</strong>refore described as experts.
According to Gläser and Laudel (2006), experts are individuals who as a result <strong>of</strong> <strong>the</strong>ir experience
possess specific knowledge over a specific social issue. Among those interviewed were a head <strong>of</strong> a
human resource department, a head <strong>of</strong> a PR Department, two CEOs <strong>of</strong> public affairs agencies, two
consultants, two Secretary-Generals <strong>of</strong> organizations listed on <strong>the</strong> stock exchange and a lawyer. The
experts were selected to ensure a balanced sample from different sectors (consulting and industrial)
as well as sex (5 females and 4 males). As <strong>the</strong> interviews were held in German, <strong>the</strong> analysis was
done in German as well (native language <strong>of</strong> <strong>the</strong> author and <strong>the</strong> interview partners) and <strong>the</strong> results
were afterwards translated to English.
3. Managing networks
Formal and informal networks are strong factors that have tremendous influence on a company’s
success. Their usage is advantageous to firms because <strong>the</strong>y form <strong>the</strong> basis for innovation,
communication and collective support. Never<strong>the</strong>less, social networks can build a market entry barrier
for firms outside <strong>the</strong> network. Hence, <strong>the</strong> barrier to growth for firms with too strong informal networks
has to be taken into account and prevented by attentive network analysis and network management
(Fuller-Love, 2009).
In order to achieve <strong>the</strong> best results and prevent disadvantages, certain conditions have to be fulfilled
in a social network. The network members have to complement each o<strong>the</strong>r in <strong>the</strong>ir interests and
expectations, which will have to be coordinated. Also, <strong>the</strong> forms and methods <strong>of</strong> working as well as
<strong>the</strong> infrastructure <strong>of</strong> a network have to be suitable for <strong>the</strong> objective <strong>of</strong> <strong>the</strong> network. The most important
and underlying principles in networks are <strong>the</strong> norms, values, agreements and trust (Becker et al.,
2005). The emergence <strong>of</strong> trust, <strong>the</strong> expectations <strong>of</strong> regular, honest and cooperative behaviour
(Fukuyama, 1995), requires goodwill, competence and behavioural reliability. Trust influences <strong>the</strong>
ability to innovate and to adapt <strong>the</strong> quality <strong>of</strong> network flows for materials, information and human
communication. A high level <strong>of</strong> trust enables all process types to operate more efficiently in a selfreinforcing
manner (Dervitsiotis, 2006).
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