Internal/inter-firm control dynamics and power-A case study of the Ericsson-Vodafone relationship

This paper has analysed the role of power in shaping internal/inter-firm control dynamics in the Ericsson-Vodafone relationship. While previous studies have tended to either neglect issues related to power, or focus on only one aspect of power, resource power, our contribution lies in detailing how the combination of resource, process and meaning power is key to understanding internal/inter-firm control dynamics. Vodafone mobilised resource power to bring about changes in inter-firm control, and subsequently mobilised process, meaning and resource power to implement additional inter-firm control as well as dictate changes needed in Ericsson's R&D structure, which resulted in more financially oriented internal control within Ericsson's R&D units. Our study also details how 'accounting talk' was important for determining the trajectory of internal/inter-firm control dynamics and the intimate relationship between such 'talk' and the mobilisation of power. In this respect, we extend the Hardy and Redivo (1994) power framework by showing that language is important not only in the mobilisation of meaning power (as Hardy and Redivo point out), but also resource power.