The Emergence of Trust and Power within a Business Network Essay

The Emergence of Trust and Power within a Business Network - Essay Example It is a critical and strategic issue which needs to be dealt very carefully, this element of trust is vital in all kinds of relationships whether it is within the business or with the external stakeholders. It is very hard to make this trust however one mistake can hurt the reputation very badly and create serious consequences for the future of the business. Power is the acquisition of assets and its control which gives dominance to a party over the other. It is to have the control and ability to influence the decision of the other party. Power has its own benefits and draws backs within a business network. Too much or less of it has its own effects. However, it has been seen that where there is trust there is less likelihood of power causing any harm to the social or business network (Group H.R., 2000). When we talk about the long-term success of the business then this success is dependent on the development of positive networks in the industry. Business networks are an opportunity for the owners of the business and the team of employees to improve themselves continuously. They are a collection of companies linked through agreements for business purposes who work together to get over all benefits for the members in doing so they need to make business dealings and work together and invest and divest money Thinking Made Easy, p21, 2009). A company in the business network tends to learn from one another’s mistakes and successes and based on that they derive solutions to their own problems. Apart from the business perspective networking helps in social activities and events. It leads to strong bonds and close relationships with the business partner which is good for the business in the long term (Daft, p110, 2001). The relationship must be enduring and permanent in nature.