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Boosting firm performance via enterprise agility and network structure

Chyan Yang (Institute of Business and Management, National Chiao Tung University, Taipei, Taiwan)
Hsian‐Ming Liu (Institute of Business and Management, National Chiao Tung University, Taipei, Taiwan)

Management Decision

ISSN: 0025-1747

Article publication date: 22 June 2012

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Abstract

Purpose

Drawing on a network perspective on enterprise agility, the purpose of this paper is to explore whether firms with superior network structure not only may be better able to generate direct effect on firm performance, but whether a superior network structure may also help firms to create better firm agility and thus enhance their performance.

Design/methodology/approach

The study employed a survey method and data were collected from 250 companies in Taiwan's glass industry. Using structural equation modeling (SEM) technology, it specified the measurement properties of survey instrument such as reliabilities and validities and then identified causal relation among latent constructs to examine causal effects of hypotheses testing.

Findings

The results show that a firm's agility capability and its network structure are a critical competitive strategy source of firm performance. Moreover, network structure also partially mediates the impact of enterprise agility on firm performance.

Research limitations/implications

Because the data were collected from a single industry and firm performance is evaluated by subjective managerial assessments, further research may be necessary by using the data involving multiple industries with objective performance indices for more meaningful and generalized results.

Practical implications

The findings confirm the importance of enterprise agility for contemporary firms in today's dynamic business environment. By reinforcing enterprise agility, firms could react better to unpredictable changes. In addition, firms also are suggested to put more effort into developing and maintaining their network structures, both as repositories of external resources and as boosters of enterprise agility.

Originality/value

The paper provides evidence regarding the impact of enterprise agility and network structure on firm performance.

Keywords

Citation

Yang, C. and Liu, H. (2012), "Boosting firm performance via enterprise agility and network structure", Management Decision, Vol. 50 No. 6, pp. 1022-1044. https://doi.org/10.1108/00251741211238319

Publisher

:

Emerald Group Publishing Limited

Copyright © 2012, Emerald Group Publishing Limited

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