Mind the gap: Expanding proximity theory to understand network failure in transport systems

Abstract

Bringing together the Industrial Marketing and Purchasing (IMP) perspective and proximity theory, we investigate network failure in business markets, specifically, how collaboration failure leads to network failure. With shared focus on the relational dynamics within industrial networks, the IMP perspective emphasises the importance of long-term relationships between actors, where interactions and collaborations shape business practices and strategies. Proximity theory adds depth by exploring how various proximities affect these relationships. We find that collaboration failure is a critical driver of network failure. To expand proximity theory and gain insights into unexplained collaboration failure and network failure, we introduce the concept of commercial proximity. This new dimension sheds light on specific collaboration challenges, particularly those arising from conflicting value generation objectives among actors, which existing proximity dimensions do not fully address and can result in non-collaboration and thus network failure. Understanding the interplay between IMP research and proximity theory is a significant outcome of this paper, as it can help businesses understand and more importantly strategise their networking approaches. By recognising the specific ways in which proximity influences relationship dynamics, actors can strategically position themselves within their networks, thereby enhancing their competitiveness and innovative capacity.