Extended dependency network diagrams: adding a strategic dimension

Purpose Organizations increasingly form or join collaborations to gain access to resources paramount for achieving a sustained competitive advantage. This paper aims to propose an extension to the established dependency network diagram (DND) technique to better facilitate analysis, design and, ultimately, strategic management of such collaborations. Design/methodology/approach Based on the resource dependence theory, the constructs of power and secondary dependency are operationalized and integrated into the original DND technique. New rules and an updated algorithm for how to construct extended DNDs are provided. Findings The value of the proposed extension of the DND technique is illustrated by analysis of an application hosting collaboration case study from the Australian financial service industry. Research limitations/implications This study provides preliminary evidence for strategically managing resource collaborations. Future research could further test empirically the usefulness of the proposed extension of the DND technique and how much it contributes to better understanding resource collaborations. Practical implications The proposed extension of the DND technique enables managers to perform a broader analysis of dependencies among participants in a collaboration, helping them to more accurately comprehend the relationships between the entities in their collaborative environment and, thus, being in a better position of strategically managing resource dependencies. Originality/value The proposed extension of the DND technique makes a central contribution to the extant literature by adding a strategic dimension to a visualization technique used to represent collaborative environments.