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Changes within activity patterns through network tensions

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Investigating network activity patterns and tensions in a case study by Bella Butler. Findings suggest that tensions influence changes in activity patterns, emphasizing the importance of coordination activities.

Image courtesy of interviewee. December 4, 2023

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This video video discusses the establishment and modernization of an international airport from its founding in 1993 through major infrastructure updates completed in 2015. The airport emerged from the privatization of previously state-controlled facilities in the former Soviet Union. This video video modernization process required the creation of a new business network of various actors, including the airport, airlines, service providers, and regional governments.

The authors identify four key tensions experienced by network actors during this modernization:
1. **Relationships in the Network**: Tensions arise from the differing individual versus collective outcomes for the involved organizations.
2. **Network Position**: The airport’s central role necessitates balancing its current position with accessing new resources and information.
3. **Control Dynamics**: Tensions about who controls whom can influence operational alignments within the network.
4. **Network Structure**: The entry of new actors can prompt structural changes in the network.

Additionally, the text highlights two types of change processes within activity patterns: stable coordination, which extends existing patterns, and disruptive change, which can lead to the formation of new patterns.

Significant insights and conclusions include the importance of recognizing major events that trigger multiple tensions within the network, which can lead to breaking old activity patterns. The study emphasizes the vital role of management capabilities to address these tensions and enhance coordination across the business network, ensuring the stability and performance of organizations involved. Managers are encouraged to collaborate and recognize how changes in one entity can impact the broader network, facilitating joint efforts to adapt and thrive in a dynamic environment.

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X-TIMESTAMP-MAP:LOCAL=00:00:00.000,MPEGTS=900000

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We for the international airport from,

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its establishment in the 1993

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to 2015 when the major modernization

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of this airport infrastructure was completed.

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Uh, the airport was established in the 1993 as a result of

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the regulation and privatization of the state owned

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and state controlled,

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airport in the former Soviet Union.

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Uh, the processes, which, made it possible

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to complete modernization of the airport, demanded,

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new, pattern of,

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activities within the business network.

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And in fact, the new business network

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around the airport was formed as a result

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of this modernization process.

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In our study, we identified the four tensions,

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which were export in the literature.

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Uh, in the previous literature,

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these tensions were number one, it's about relationships

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of different network actors.

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I have to probably explain that.

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We refer to network actors, as various organizations,

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in this case, organizations working around the airport.

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For example, the airport itself as an organization,

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different airline companies which operate from this airport.

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For example, the Mystic, as well as international airlines,

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which conduct their operations from this airport.

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It is providers of, different services

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to the airline companies as well as a airport itself,

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for example, through providers, providers

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of different services, as well as the regional government,

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in the region where the airport is located,

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and also other, transportation companies.

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So they all network actors.

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But let me return to your,

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questions immediately about, tensions.

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So, tension number one is about relationships

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between outcomes in the network.

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Uh, each of these organizations

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or network actors have their own outcomes

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of their activities,

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and we looked at individual outcomes as well

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as collective outcomes.

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Collective outcomes include outcomes related

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to various organizations or various, multiple networks.

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In the, in the network,

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actors experience tensions within their relationships around

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certain activities focused on their individual versus

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collective, collaborative outcomes.

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And in this case, they influence

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activity patterns developed within business network.

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Number two, it is about, pensions

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around network position.

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For example, in, our case, the airport itself,

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held a central position in the network, need

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to consider the trade off between activities which

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reinforce their current network position

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or activities to access different information laws

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and other resources, changing existing relationships

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and having the potential to rise existing relationships.

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Conflict tension number three, it's about control.

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Who controls whom in this network?

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Tension around hec, control within networks, for example,

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the more you control other hec,

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the more likely you use you as an hec.

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You use Hector Resources, which require

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to control operations by other hecs.

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So extensive changes to

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existing HEC relationships are more likely to occur,

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during forming new or breaking old activity patterns.

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And number four, tension, tension around,

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structure of the network.

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For example, when new actor enters the network,

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this results in, structure changes of the network.

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So again, we recognized, these tensions

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around the structure of networks.

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In addition to tensions, which,

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we studied based on the previous literature,

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we also identified,

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change processes within activity patterns.

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Uh, number one of them is stable coordination processes

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that change the activity patterns to expand

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or extend existing activity patterns.

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For example, the low tensions, the more likely that,

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existing activity pattern will be extended

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rather than breaking.

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And,

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this would result in forming new activity pattern.

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And this is number two.

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Uh, we identify change processes that form new

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or break old activity patterns.

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Very interesting in a sense that,

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we looked under which conditions,

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the network can be broken

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and, under which conditions,

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old activity patents is broken

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and a new activity patents can be found.

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For example, the regional network was, further extended

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to the federal level from the regional level

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because we, we focused, on the regional airport.

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Uh, but we looked at, potential extension

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of the regional network around this airport

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to the federal level through, through the

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regional governor becoming more powerful in a sense.

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Uh, when this regional government become part

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of the federal, government, he was choosing

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to represent, his region at the federal government,

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he become more powerful.

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Uh, this also

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Impacted the, business network around the airport

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because the airport become, more noticeable.

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It become, not just, the regional hub,

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but become quite noticeable for, for example,

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airlines operating previously only from, Moscow and St.

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Peterburg airports.

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So our results included the four wind we identified,

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how, network,

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network actors experienced tensions.

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And the more tensions, network actors experience,

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at the same time, the more likely,

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an old activity pattern will be broken

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and a new activity pattern will be established.

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The greatest number of tensions,

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being experienced within the same

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event in the business network by major network actors,

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the more likely the breaking of activity pattern will be,

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will occur.

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There are certain takeaways from our study.

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Number one takeaway is about,

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recognizing events.

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Something happens to one actor, something happens,

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to one hec, but also, has

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a broader impact on the whole

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network, whole business network.

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So it's important to recognize what are these events when,

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an event, is able

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to trigger multiple tensions.

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In this case, a high level

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of tensions will be experienced by hecs.

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For example, in, our case study, a major event was

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the, the regulation of the previously,

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state controlled, enterprise,

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which included different airports

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and different, airline companies.

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Um, also as a result of this deregulation,

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the federal authorities controlled the civilization

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as an industry didn't have any resources.

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Uh, for example, we could see that major modernization

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of the airport was crucial in order for the airport,

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being able to remain competitive

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and provide, appropriate services to airline companies,

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which operated from this airport, as well as to customers

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who increasingly could experience, different level

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of services when they traveled elsewhere

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around Russia and also abroad.

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Um, so the takeaway is, to be able

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to recognize this major, events which were able

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to cause network disruption.

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Uh, when these major events were able to trigger,

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multiple tensions of multiple network actions

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that, an activity patterns will be broken.

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In our case, an activity patterns was that,

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airports were controlled

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by fe federal authorities of civilization.

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However, in this case, we recognized,

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that the power was increased in terms of,

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the impact of the regional government.

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Initially, the regional government,

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provided warranties to external investors.

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Without external investors, it would not be possible

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to move, the modernization process in the airport.

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So completely different relationships

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and activity patterns have to be, formed in order to,

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even start this modernization process.

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Another very important contribution

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and take away, by our study is that breaking

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of activity patterns is more likely to occur when actors,

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particularly major central actors such as the federal gov,

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regional governments,

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airport itself a change in their network position.

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Uh, in our case, we observed that,

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the regional government initially

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provided warranties for external investors,

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but later on they become so powerful

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that they changed the management of the airport, which by

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that time, become a private company.

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And yet the power of the regional government,

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permitted them to change, the management

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and some practices within the airport.

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This is how powerful, they become

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during this modernization process.

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So, in other words, this is takeaway from our study.

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Change in network position interrupts coordination

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activities between connected actors,

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which affect activities, conducted by,

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partner organization and their firm performance.

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This is, we're talking, about takeaway in terms

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of knowledge about activity patterns within the network.

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I also would like to highlight a very important takeaway

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for managers managerial implications, if you like.

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And this is about specific management capabilities

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to deal with tensions.

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We highlight that,

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also different network actions, actors.

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Different organizations would experience different tensions.

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Uh, it's still very important to recognize

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the managerial capability to deal with these tensions.

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Managers in fact, need to identify events,

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where potential high level of tensions likely

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to be experienced by their organizations,

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but also business networks.

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So identify

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Tensions will be different,

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but when multiple tensions are experienced by hecs,

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then changes will be more widespread

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through the business network.

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In this instances, managers need to

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synchronize coordination activities across the network

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to work within and around different tensions experience.

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And I would like to stress that also,

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manage management managers are in charge

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for their own organizations.

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They have to recognize

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how these major are triggering events impact not just their

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organization, but other organizations

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with whom they work together.

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In other words, how this major triggering events

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impact their business network.

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So, and in this case, they have to collaborate

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with manage management of other organizations in order

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to achieve, joint coordination

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because they recognize

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that this coordination activities are needed not just

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for the benefit of their organization,

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but also for the benefit of stability

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of their business network.

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Alright, so capabilities in identified anti in

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identifying anti anti to tensions,

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and capabilities in carbonating activities across the

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network will be very important, to optimize changes

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to ensure positive influences on,

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organizational performance.

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