Renewal through co-creation in business networks

This article presents four models of business renewal within networks based on a theoretical framework developed from earlier literature. According to the typical dimensions of business development, our framework distinguishes between the exploitation of present knowledge for efficiency and the exploration of new knowledge for new business development. Furthermore, the two network development and governance types (i.e., hub-spoke and multiplex) form the other dimension of the framework. The framework was empirically tested with five case companies and their business networks. The framework of network models may help managers to structure the business network and its renewal based on the strategic targets of a firm. Furthermore, the theoretical contribution of the paper deepens the understanding of how co-creation and interaction between the participants differ according to business focus and complexity of networks.