The Stability of the Focal Firm in the Business Network: The Effect of Competence Shifts

In this paper, we explore the role of competence transfer at the actors’ level as driver of change in strategic networks. We use categories deriving from two different ways to see networks: strategy and IMP. Intrigued by the phenomenon that an increasing number of cases emerged in which companies from traditional industrialized countries that have been holders of major brands, have been acquired by former suppliers based in new industrial countries, we question the implicit assumption of the stability of the position of the focal firm in its strategic network. Through a longitudinal case study analysis of the sports shoe industry, we develop theoretical propositions as to how competence transfer leads to changes both at the network challenging the position of the focal firm.