Authors:

Yulia F. POPOVA Dr. Sc. (Econ.), Professor, Head of Management and Marketing Dept

Abstract:

Managing interfirm relationships and a strategic position of a company within a network is the key component of a business model of a modern organization, which plays an important role in increasing its competitiveness. The paper defines the term “capital of interfirm relationships” as the main element of an organization’s social capital. The author believes that the process of establishing interrelations leads to formation and accumulation of the capital of interfirm relationships, which depends on their quality and determines competitive advantages (including economic benefits) that companies receive during the interaction premised on the principles of implementing mutual obligations and cooperation. The article explains the necessity of monetary and non-monetary capital of intercompany relationships and offers a methodology for its evaluation. Monetary evaluation assumes the savings that come from a company’s contacts with suppliers and additional income earned due to cultivation of relationships with customers. The basis of the evaluation of nonmonetary capital of interfirm relationships is the system of group and individual parameters of the network context analysis.

Keywords:

CAPITAL OF INTERFIRM RELATIONSHIPS, MONETARY ASPECT, NON-MONETARY ASPECT, SOCIAL CAPITAL, NETWORK-BASED APPROACH, NETWORK-BASED BUSINESS MODEL

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For citation: Popova Yu.F. Capital of Interfirm Relationships: The Concept and Evaluation Methodology. Upravlenets – The Manager, 2017, no. 4(68), pp. 32–38