BPME3063-

ENTREPRENEURIAL
NETWORKING
MANAGEMENT
CHAPTER 2: NETWORKING
PERSPECTIVE
 2.1 Terms in the perspective of networking

2.2 Business networking areas and its type.

2.3 The basic principles of networking

OBJECTIVES 2.4 Dimension of networking dynamism and changes of networking

2.5 Networking grid

2.6 Ethical aspects of networking

2.1 Terms in the perspective of networking
2.2 Business networking areas and its type

Basically, there
TWO (2) type of EXTERNAL INTERNAL
networking areas:
 Entrepreneurs need to foster good
relationships with individuals who are
outside the business.

Entrepreneurs also need to build

EXTERNAL relationships with groups outside the
NETWORKING: company

Examples: officers, customers, suppliers,

competitors, bankers, NGOs, Govt
agencies, Private agencies, communities
INTERNAL NETWORKING:

Good relationship
with members in an
organization is
either party

Top Management Coworkers Subordinate

NETWORK AREAS:

INTERNAL EXTERNAL
INDIVIDUAL Officers, managers, subordinates & Customers, suppliers, competitors,
others. bankers, govt officers, private officers
& others.
GROUP Units, departments, branches & others. Firms, govt agencies, ministries,
associations, political parties, NGOs, &
others.
2.3 The basic principles of Networking (5)

Building a network is a basic human need

Humans tend to do what is expected

Humans tend to associate with those who are similar to themselves

Frequent & Continuous interactions can enhance human collaboration

Small World Phenomenon

 Human nature (nature and tradition) always
depend on others, can not live alone.
1- Building a
network is a
Socialized Creatures (Ibn Khaldun)
basic human
need
Each individual is a point in the network
lines that are interdependent, interrelated &
mutually needed.
2- Humans tend to do what is expected
1 2
Being in touch with others Easier relationships build
he thinks can bring goodness with people whose
to him perceptions & perceptions
can benefit
3
Expectations / perceptions
on others are much
influenced by intuition,
feelings & assumptions only
 Equation is an influential force in the network

3- Humans Humans tend to connect with the same person as

tend to himself (in terms of ethnicity, culture, language,
religion, gender, age or education stage etc.)
associate with
those who are On the contrary, it will feel uncomfortable, awkward
and even less confident to get in touch with those with
similar to disabilities

themselves This will create a barrier wall & make it difficult to

expand the network
 4- Frequent & Continuous
interactions can enhance
human collaboration
• Humans tend to collaborate & build
positive networks with whom they
interact frequently

• Regular and persistent interactions allow

people to recognize their own hearts,
personality, attitudes & behaviors,
expectations, tendencies and favorites

• Then increase understanding &

cooperation
5- Small World
Phenomenon
• Many of us know by recognizing us
directly or indirectly
• Humans are very close to other humans
who are useful to him
• Everyone we put into the network
becomes direct contacts in the first order
zone or first-order network zone
• It has multiple effects on the number of
members in the second-order zone
(indirect contacts)
2.4 Dimension of networking dynamism and
changes of networking
The level of relationship within a network is dynamic that
is changing according to the situation & time

Deliberately or unintentionally

Planned or unplanned
Dimension of Changes
towards networking:
• Changes in the relationship between
individuals and contacts in the network
can be seen from 6 dimensions, namely:
• Exchange Relationship
• Compulsory & voluntary exchange
relationship
• Weak and strong relationship
• Simple & Multiplexity Relationship
• Trust
• Network size
STRENGTHS OF
RELATIONSHIP:

• Strong ties
• Simple ties
• Weak ties
2.5 Networking Grid

GOAL ORIENTATION

1. MARKET 2.
GOAL EXPLOITATION RELATIONSHIP
ORIENTATION ORIENTATION
3. DISCONNECT 4. SHARING

Relationship orientation
 Both sides are only goal-oriented;

this relationship is called 'market' as both parties

are just trying to achieve the goal
Purchase goods & money

1- MARKET Brief & short relationship,

No commitment

No history & background

 you are exploited by others as they are
goal-oriented & want to gain the advantage
of relationships.
but you're relationship-oriented

2-
trying to build good & persistent
EXPLOITATION relationships

if you continue to exploit you will end the

relationship after a while.
3- DISCONNECT

You're goal-oriented but others want to build a good (persistent

relationship) relationship.

Over time relationships will be disconnected because you only get the
advantage & are considered exploit others.

Relationships will be terminated by others.

 4- SHARING

Both parties are oriented.

"Partnership" symbolizes;

loyal relationship,

for common interests & benefits,

committed to maintaining
relationships for a long time.
2.6-Ethical aspects of networking

• Good relations must have ethics. Must take into account the
sensitivities, welfare, benefits & interests of both parties.
• Ethical relationships must be based on the principle of adab-susila &
high moral values.
• Respect limits
• law;
• culture,
• trust & religion.
• Unethical and illegal relationships from legal aspects.
• Organized criminal syndication is based on close & solid relationship
based on importance, mutual understanding & mutual benefit.
• Examples:
• Mafioso in Italy, Yakuza in Japan, Mafia in America, Triad in Hong
Kong, Along, tonto & secret societies in Malaysia.
• Get involved in drug & drug syndicates, prostitution, unlicensed
entertainment centers, loan-sharks, robbery & robbery.
Activity:
• Please discuss what are the current/latest type of illegal & unethical
activity happening throughout in Malaysia.
Ethical relationship:

But the close relationship of entrepreneurs with

its network of partners, loyal customers,
suppliers, banks etc.

must be ethical, based on moral goals, believe

in trust, mutual use, understanding etc. good
value.

Relevant relationship with win-win situation,

synergy & smart-partnership

(# 4 in contact grid - "sharing")

 But the close relationship of
must be ethical, based on
entrepreneurs with its
moral goals, believe in trust,
Ethical relationship: network of partners, loyal
mutual use, understanding
customers, suppliers, banks
etc. good value.
etc.

Relevant relationship with

(# 4 in contact grid -
win-win situation, synergy
"sharing")
& smart-partnership
CONCLUSION:

A good relationship must have ethics

Ethical relationships must be based on the principle of

adultery and high moral values
Respect for boundaries (Law, Culture and Religious &
Religious)
Unethical and illegal relationships from legal aspects

Organized criminal syndication is based on a close & firm

relationship network based on mutual interests, mutual
understanding & benefits
Ethical relationship

A relationship that is capable of producing win-win situation,

synergy & smart-partnership
 A good relationship must have ethics

Ethical relationships must be based on the principle of adultery and high

moral values

Respect for boundaries (Law, Culture and Religious & Religious)

Unethical and illegal relationships from legal aspects

CONCLUSION:
Organized criminal syndication is based on a close & firm relationship
network based on mutual interests, mutual understanding & benefits

Ethical relationship

A relationship that is capable of producing win-win situation, synergy &

smart-partnership