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Customers’ Perceptions Changes in Ba Co.

Mill A

products). This order represented [that] we had multiple relationships, not merely single relationship (technical exchange). [Moreover, ] our relationships went from unidirectional to reciprocal.” These examples suggest that social interaction allowed Ba Co. to change its perception of BETA Group, to compare with and imitate BETA Group, and to reconstruct its self-definition. Meanwhile, the other side, BETA Group, also shifted its perception and changed its behaviors, from isolating Ba Co. to putting its trust in Ba Co. Therefore, two parties influence each other reciprocally and simultaneously. Social interactions allow different parties in the network to compare with and learn from each other, to modify their own beliefs and

self-definitions, and, at the same time, to change others’ beliefs and attitudes towards them.

Although social interaction triggered a desire to imitate and assimilate into BETA Group, social interaction also let Ba Co. realize that BETA Group was not flawless. Namely, Ba Co. had some characteristics which compared favorably with those of BETA Group and were worthy of preservation. For example, Ba Co. was more flexible than BETA Group. One executive in Ba Co. stated: “After our customers placed their orders on our products, they could receive our goods in four days. ...BETA Co.’s customers had to place their orders a month in advance.” One manager in BETA Co. gave me an example of differences between two sides:

According to the law, a person ascends a height more than 2 meters and there is no balustrade to protect him; he should wear a safety belt to prevent him from falling off. In Ba Co., everyone just obeyed the law. … BETA Co. is far away from what is normal. If you want to enter the mill, even though you just look around and walk on the ground, you should wear a safety belt, a safety helmet, and goggles.

Everyone in the mill looks like a soldier of field forces. Too rigid!”

Through interactions with each other, Ba Co. imitated BETA Group; at the same time, BETA Group also learnt from Ba Co. As one executive told me:

In the beginning, BETA Co. refused to use any machine provided by Chinese producers and never gave it a chance to be on trial. Previously, in our mill, there was a roller which has been on trial for six months. It functioned quite well. They (technicians and managers in the group headquarters) visited our mill and asked us some questions about this roller. After a period of time, they decided to buy the same roller [which was a major manufacturing machine in the production line], even though it was made in China.

Moreover, the group headquarters explored some Ba Co.’s hidden characteristics which Ba Co. did not notice before. One general superintendent stated:” Individuals from BETA Co. acclaimed us as zealous learners, because we insisted on probing to the bottom of a technology when we desired to know it.” Consequently, stable and frequent connections offered a venue for mutually exploring hidden but good characters. Those latent elements would not threaten the relationships because this exploration was based on mutual positive affection.

Up to this point we have shown that partner selection not only revealed a shift in focal party’s perceptions but also embarked on a journey to seek possible self. In this process, connections with partners (who may help focal party to redefine who they are) offered the focal party an opportunity to filter outdated beliefs or practices via comparison, to learn from partners, and to reconstruct its self-definitions.

However, at the same time, chosen partners also modified their perceptions of focal party and implanted some characteristics from focal party into them. Although this journey started from a desire that focal party would like to look for a possible

self-definition, the interplay between focal party and chosen partners turned this journey into a co-evolution process. In another word, while connections gave focal party a chance to imitate partners and redefine itself, connections also gave chosen partners a chance to learn from focal party and redefine themselves. Apparently, both sides went through a period of mutual adjustment. Similarities between two groups’ identities were gradually increasing.

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Nevertheless, social interaction not only strengthened similarities but also highlighted distinctiveness. Through comparison, focal party may realize that some elements were worthy of preservation and further turned those into its distinctive characters. Furthermore, sometimes, they may have serendipitous findings, unexplored essence. These serendipitous findings not only would not threaten relationships but also may become distinguishing essence of this organization.

Interaction 3: Passively connected by group members and gradually being a relatively central actor

Experiencing a process of adjusting perceptions and attitudes towards Ba Co., group members were more willing to build enduring and multiple relations with Ba Co. Figure 3.2 (which we showed above) displayed that Ba Co. progressively strengthened its connections with BETA Group by signing long-term transaction contracts. This connection transition reflected that Ba Co. has an intention to deepen its relations with group members. Another deeper meaning was that group members were aware that there were similarities between their and Ba Co.’s identities; this awareness prompted group members to gradually recognize Ba Co. as a member and glad to be its permanent partners. As we discussed before, if Ba Co.’s actions did not consistent with or violate a major part of group members’ identities, temporary relations would not successfully turn into lasting relations as Ba Co. desired.

Namely, these enduring relationships between two parties represented that group members sent a signal to show an awareness of similarities between two parties, a change in how they make sense of this newcomer, and a growing recognition of its membership.

While similarities act as a catalyst for building enduring relationships, distinctiveness act as a catalyst which attracts group members to actively build

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connections with the focal party, Ba Co. In another word, although similar

characters breed familiarity and acceptance, distinctive characters draw other actors’

attentions and trigger their desires to learn from or make a friend with the focal actor.

Our interview data showed different kind of ways (which was listed in Table 3.7) that Ba Co. set distinguished parts of it identities. These distinguished characters helped Ba Co. to become a role model within the group, to add incentives for group members to voluntarily build links with it, and to gradually reach a relatively central position.

Now, let us switch our focus from Ba Co.’s ego network to the whole network.

Figure 3.4 (the evolution of transaction network within group) clearly shows that Ba Co. moved from the periphery to the center in 2003-2007. However, Ba Co. could successfully reach a relatively central position not simply because it actively

connected with group members. There are two deeper meanings to illustrate this network evolution. On the one hand, similarities between two parties’ identities helped Ba Co. to gradually win group members’ recognition and acceptance which changed this picture dramatically. As we mentioned before, similarities between conflicting parties’ identities imperceptibly muddled the line between “us” and

“them” and create the willingness to build enduring and multiple relations. On the other hand, distinguished identities added incentives for group members to actively connect with Ba Co. for the sake of transferring experiences or asking for advices from it. It is clear that Ba Co. gained the central position in a way which never came into my mind before. Co-evolving with partners and developing similar characters not only help conflicting parties successfully extricate from an identity conflict trap, but also let the focal party win others’ recognition which prolongs the relationships.

Exploring distinctive characters or pouring some distinguished elements into identities push potential partners to actively build connections with the focal actor.