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Introduction Close-knit business relationships between business partners are gradually becoming the norm in today's business environment (Holm, Eriksson and Johansson 1999). Having previously dealt with business contacts in a predominantly arms-length fashion firms nowadays have increasingly come to realise the value of creating close relationships with their business partners. Driven partly by rapid technological development as well as increasing internationalisation this has had a significant effect on the everyday running of businesses. By creating inter-firm linkages of i.e. legal, administrative, information exchange and technological nature companies become more closely tied together and activities in the two partners may be synchronised in order to achieve synergy (Håkansson and Johansson 2001). However, although focal relationships are of particular interest in this essay a closer examination of the network structure of which the focal business relationship is a part is needed in order to gain a better understanding of its impact on businesses. In...

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