Today´s networked business environment calls for more complete and complex solutions and also requires changes in value networks´ configuration. It is also crucial, that the network is able to renew its offering and innovate through opportunity recognition. In this case study set on industrial service concept network context we will aim to answer the following question: is there room for effectuation in the service concept network? We also scrutinize the roles of different stakeholders concerning opportunity recognition activities. The case network is integrated by a large focal company and small businesses as network partners have adopted the service concept developed by the focal company.

The focus of this paper is to examine opportunity recognition activities in a network from the entrepreneur’s perspective. The paper is based on a real service concept network and it provides examples and knew knowledge regarding managing networked business operations. We build the study on a single case study of an automotive spare parts network. The contributions of this study are twofold. Firstly, a contribution is made by combining industrial service network research and emerging theory of entrepreneurship: effectuation. Secondly, this study makes a contribution by developing new knowledge of effectuation in networks.

The case study was conducted in a Finnish industrial service company providing comprehensive solutions in automotive spare parts and accessories. Case study method enabled us to perform a detailed data analysis and form an understanding of the case context. The data was collected by using the critical incident technique, thematic interviews and group discussions on all levels of the case network and also six independent concept entrepreneurs (SME´s) were interviewed. Data analysis: 1) mapping out the roles of different stakeholders and 2) identification of the existing processes, practices and examples related to opportunity recognition activities, was guided by theoretical background.

There is a lot of innovation potential in grass roots of our case network. The entrepreneurs have the freedom to develop their business in their own way, thus there is room for effectuation in the end user interface. In a network level, more organized processes are used and needed. Enabling effectual logic, for example in local pilot projects, might provide renewal ideas. The transparency in co-operation is crucial to increase the willingness to knowledge sharing between network partners. Since networks are such an important phenomenon in today’s business environment, much more research should be placed on generating new understanding of the opportunity recognition processes in networks.