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1 – 10 of over 36000Joanna Scott-Kennel, Axèle Giroud and Iiris Saittakari
International business theory suggests that multinational enterprises (MNEs) seek to internalise resources embedded in local firms to complement their own through…
Abstract
Purpose
International business theory suggests that multinational enterprises (MNEs) seek to internalise resources embedded in local firms to complement their own through inter-organisational relationships, yet little is known about whether and how these business linkages differ between foreign (F)MNEs and domestic (D)MNEs. This paper aims to explore the linkage differential between DMNEs and FMNEs operating in the same single-country contexts and to examine whether foreignness, regional origin and technological capability make a difference.
Design/methodology/approach
This study is based on a unique firm-level data set of 292 MNEs located in five advanced, small open economies (SMOPECs). This study analyses the benefit received – in the form of technical and organisational resources and knowledge – by DMNEs and FMNEs via backward, forward and collaborative linkages with local business partners.
Findings
Our research finds FMNEs benefit less from linkages than DMNEs; and FMNEs originating from outside the region especially so. However, the results also show technological capability mitigates this difference and is thus a game changer for FMNEs from outside the region.
Originality/value
This paper differentiates between FMNEs and DMNEs in their propensity to benefit from resources received from different local partners and explores the influence of regional origin and technological capability. Despite the advanced and internationally oriented nature of SMOPECs, DMNEs still gain more benefit, suggesting either liabilities of foreignness and outsidership persist, or FMNEs do not desire, need or nurture local linkages.
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Eoin Byrne, Eleanor Doyle and John Hobbs
Effective policy to support business ecosystems should build on evidence-based analyses of firm-level activities and outcomes. This paper aims to contribute to this requirement…
Abstract
Purpose
Effective policy to support business ecosystems should build on evidence-based analyses of firm-level activities and outcomes. This paper aims to contribute to this requirement and makes three contributions. The first contribution is to extend the application of the network capital concept to a variety of eight distinct linkage categories (e.g. suppliers, customers and business support agencies) that support networking and clustering, in both activity and impact terms. The second contribution is outlining a novel method of network visualisation (V-LINC) based on the collection of primary and qualitative data. The third contribution is in applying the method to one cluster, information and communications technologies.
Design/methodology/approach
Qualitative research on the nature and extent of organisational network linkages was undertaken. Structured interviews with a set of focal firms followed a tailored design approach. The concept of network capital was extended and applied to the cluster context by measuring network inputs and output (i.e. investments and impact). The approach was operationalised via a novel impact measurement approach, denoted as V-LINC, an acronym for visualising linkages in networks and clusters.
Findings
The authors develop a business impact framework exploiting novel linkage visualisations and qualitative data from firms in a cluster in one city region across eight linkage types to capture distinct network capital elements. Organisational inputs into network development, measured as investment and involvement indicators and organisational outcomes from those networks, measured as importance and intensity indicators, are used to assess network performance. A comprehensive, systematic and robust analysis of network elements and performance is possible. Distance is found to interact differently across linkage types. Targeted recommendations may be made from the analysis of local or regional business ecosystems in light of measured business impacts of linkages.
Research limitations/implications
Due to the resource-intensive nature of data collection, the current study engages a limited sample of firms and interviewees. Applications of this approach in other contexts will permit further research into its usefulness in evaluating business impacts generated through networking activities.
Originality/value
The method introduced here (V-LINC) offers a novel means to include both geography network theory into an understanding of knowledge relationships and networks within clusters. Accounting for both distance and linkage type reveals which categories of intra-regional and extra-regional linkages generate the greatest impact, given their frequency. The approach adds to available cluster visualisation and analysis approaches through identifying patterns of disaggregated knowledge flows and their impacts, with application to evaluation demands of policy.
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Andreas B. Eisingerich and Simon J. Bell
Current marketing theory and practice have recognized that exchanges between buyers and sellers are frequently embedded in social relationships. Despite the vast body of research…
Abstract
Purpose
Current marketing theory and practice have recognized that exchanges between buyers and sellers are frequently embedded in social relationships. Despite the vast body of research on interorganizational exchange, there has been little effort to address the role of larger social networks in which business‐to‐business services firms operate. This paper seeks to present a model of how social network theory can help in understanding why some services firms manage to reinvent themselves and continue to succeed in a business‐to‐business environment, while others are slow to change and decline.
Design/methodology/approach
Drawing on 81 in‐depth interviews conducted with general managers/chief executive officers operating in information technology, and biotechnology business‐to‐business services contexts, we consider the relative importance of both network strength and network openness in driving business performance.
Findings
The authors identify both network strength between firms and openness towards new actors as underpinning competitive advantage in business‐to‐business services.
Research limitations/implications
Data were collected for service firms operating in two different industries in two regions. The paper underscores the importance of examining the network properties that connect exchange partners when discussing firm performance in business‐to‐business service contexts.
Originality/value
The paper makes a series of important contributions to the small, but growing literature on services networks and has direct implications for managers.
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The traditional models of economic development are being challenged and the role of stakeholders is being reprioritised, resulting in an increased emphasis on the SMME sector. A…
Abstract
The traditional models of economic development are being challenged and the role of stakeholders is being reprioritised, resulting in an increased emphasis on the SMME sector. A practical strategy is needed in South Africa for reducing input costs and promoting the implementation and sustainability of a technology transfer initiative aimed at enhancing the competitiveness of the small/micro manufacturing enterprises. However, there is insufficient knowledge to inform this process. The aim of this paper is to understand the constraints to manufacturing competitiveness and to proffer a model for inter‐firm linkages appropriate to the South African context.
Leyla Boy Akdag and Özge Tayfur Ekmekci
This study explores the effect of the strategic fit (tight-fit, minimal-fit and non-fit) between business strategies and human resource (HR) practices on perceived organizational…
Abstract
Purpose
This study explores the effect of the strategic fit (tight-fit, minimal-fit and non-fit) between business strategies and human resource (HR) practices on perceived organizational performance (POP). It also investigates the moderating role of firm size on strategic fit–performance linkage.
Design/methodology/approach
The data were gathered via an online survey from HR managers of companies listed in “Fortune-500 Turkey, ISO-Top and Second-Top 500”. The form was distributed to 669 organizations, and 102 of them responded. The data were analyzed using one-way ANOVA and moderation analysis.
Findings
No statistically significant difference was found in organizational performance according to different strategic fit categories. The moderating effect of firm size was not significant. Yet, tight-fit and minimal-fit appear to be linked to higher organizational performance. The results reveal that business strategies aligned with HR practices could have a favorable impact on organizational performance.
Originality/value
The study differs from previous studies in terms of methodology, the conceptualization of strategic fit categories, the nature of the sample and non-Western origin.
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Terje I. Vaaland and Esther Ishengoma
The purpose of this paper is to assess the perceptions of both universities and the resource-extractive companies on the influence of university-industry linkages (UILs) on…
Abstract
Purpose
The purpose of this paper is to assess the perceptions of both universities and the resource-extractive companies on the influence of university-industry linkages (UILs) on innovation in a developing country.
Design/methodology/approach
A total of 404 respondents were interviewed. Descriptive analysis and multinomial logistic regression models were applied to analyse the data.
Findings
The findings revealed significant differences between the three informant groups across the three main groups of linkage activities. The industry informants consider all three groups of UILs important for enhancing innovation, in terms of bringing student closer to the industry. The faculty members consider consultancy and research arrangements more important than collaboration, in training and educational activities. The student perceptions on all UIL activities were relatively weak on UIL activities as a vehicle to improve innovation.
Research limitations/implications
Based on the findings, it seems that the universities should take advantage of a positive attitude among industrial actors and intensify efforts to develop UILs.
Practical implications
The research can be used for sharpen international oil companies effort towards universities in petroleum rich developing countries.
Social implications
Implications for policymakers and universities in developing countries, and for the local industrial base. In a broad sense the UIL stimulated innovation has implications on poverty reduction in natural resource-rich host countries.
Originality/value
Research on UILs in developing countries is rare, particularly in a context in which international companies are faced with host country expectations and legal requirements to invest in knowledge sector and local industry.
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Murat Atalay, Onur Dirlik and Fulya Sarvan
The purpose of this study is to explore the configuration of network ties that would have a positive impact on performance outcomes and test the presumed impact of multilevel…
Abstract
Purpose
The purpose of this study is to explore the configuration of network ties that would have a positive impact on performance outcomes and test the presumed impact of multilevel strategic alliances on innovation and firm performance in a specific industry.
Design/methodology/approach
This study comprises part of a larger project on the network relations of yacht-building firms operating in Turkey. Data of the study was collected through face-to-face interviews and questionnaires with 143 yacht-building firms operating in major yacht-building regions of the country.
Findings
The findings of the study indicated the presence of meaningful relationship between total number of (strong) network relations perceived as strategic alliance and overall innovation performance. The generally presumed positive relationship between innovation performance and firm performance was supported. The type of innovation performance that was found to be related to the total number of network ties perceived as strategic alliance at national and global levels was product innovation performance.
Practical implications
A possible contribution of this study for industry members would be the implications of the finding that indicates positive impact of strategic alliances with different actors of the industry.
Originality/value
This study contributes to the exploration of network configurations that have a positive impact on innovation and firm performance, by dealing with the impact of the size, strength and geographical level of network relations in one single study. The yacht-building industry as the empirical setting represents a specific category of industry that rests on customized individual or small-batch manufacturing requiring considerable interaction with customers and suppliers. Because no study exists on this topic, findings can inspire similar industries.
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Research on social media frequently analyze social media usage (SMU)'s positive consequences for organizations and individuals; however, recent innovation studies caution that SMU…
Abstract
Purpose
Research on social media frequently analyze social media usage (SMU)'s positive consequences for organizations and individuals; however, recent innovation studies caution that SMU may not always lead to positive new product development (NPD) outcomes. The competing streams of research highlight a fundamental tension that exists in the social media literature exemplified by the question: Is SMU good or bad for NPD? In this manuscript, the authors suggest that a more appropriate question as follows: What are the positive and negative indirect effects of SMU on NPD performance? The purpose of this paper is to discuss the aforementioned points in detail.
Design/methodology/approach
A literature review provides the model and hypotheses. Using a sample of 168 Chinese firms, the authors conducted an empirical test following multiple regression analysis.
Findings
The results demonstrate that SMU facilitates business analytics (ability) and social legitimacy (opportunity) but impairs entrepreneurial proclivity (motivation). These three constructs in turn mediate the effect of SMU on NPD performance. Moreover, this paper explores how technological turbulence moderates SMU's effects on business analytics, entrepreneurship proclivity and social legitimacy.
Research limitations/implications
The results may be affected by both the context (solely in China) and type (cross-sectional) of the data set. Future research might take a decompositional approach to study SMU's effect on innovation in different NPD stages. Furthermore, with widely varying purposes (e.g., marketing, information searching, partner collaboration, new product launch, etc.), there is certainly a need for more clarity and understanding of how firms can leverage each of these different social media activities for successful NPD.
Practical implications
First, we suggest that managers in China should be explicitly aware of the double-edged sword effect of SMU on NPD performance. Second, this study encourages managers to use social media carefully when technological turbulence becomes intense.
Originality/value
Drawing on the ability–motivation–opportunity framework, this is one of the first studies to simultaneously examines the benefits and costs of SMU for NPD. In addition, this paper bridges the separate literatures on social media, business analytics, entrepreneurial proclivity and social legitimacy and contributes to the NPD research.
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Sanjit Ray and Prasun Das
The selection of right projects in a Six Sigma program is a major concern for early success and long‐term acceptance within any organization. One of the ever‐increasing challenges…
Abstract
Purpose
The selection of right projects in a Six Sigma program is a major concern for early success and long‐term acceptance within any organization. One of the ever‐increasing challenges is to define and select right measure for improvement and appropriate problem definition. Many projects encounter the problem of no linkage with business objectives or customer needs, too large or high‐level project scope along with unclear problem and goal statement. Improperly, chosen metrics lead to sub‐optimal behavior and can lead people away from the organization's goal instead of joining them. This paper aims to propose a project selection methodology for different situations.
Design/methodology/approach
This research develops a model for project identification; ensuring well‐defined projects are selected having large impact on customer satisfaction or bottom line. The model is described for the situations: availability of performance data, balanced business score card implemented and no data is available.
Findings
A “top‐down approach” model is developed for project selection, since top management support for Six Sigma initiatives is absolutely critical to see tangible, significant results. The authors suggest establishing the linkage with data (either reactive or survey), otherwise through prioritization tool for project selection. Finally, factors influencing successful Six Sigma projects include management commitment; project selection and control skill, irrespective of whether this is a define, measure, analyze, improve and control or define, measure, analyze, design and validate/verify project.
Originality/value
This approach will help the organizations to select the specific project from multivariate organizational and customer needs. Three different methods for project selection are explained with examples and reasons for selection. Merits and demerits of each method are also highlighted.
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Yee Kwan Tang and Victor Konde
The study seeks to differentiate informal firms with high-growth prospects by their resource acquisition acts and to improve identification of growth-oriented informal firms for…
Abstract
Purpose
The study seeks to differentiate informal firms with high-growth prospects by their resource acquisition acts and to improve identification of growth-oriented informal firms for effective design and targeting of support measures.
Design/methodology/approach
An original set of firm-level data was collected using face-to-face survey in Lusaka, Zambia. Six clearly defined criteria were used to sample informal firms, apart from general informal business. Regression analyses were conducted to test the association of different resource acquisition acts with two growth dimensions: number of employees and business earnings of the 325 informal firms sampled.
Findings
Accessing clientele beyond local market, linking up with formal businesses and acquiring information and knowledge via online sources were found influential to growth in business earnings. Surprising, acquisition of finance and skills showed no effect. Employment expansion, though widely used, may not be a stable indicator of informal firm growth.
Research limitations/implications
The study highlights the relevance of the emerging entrepreneurship perspective to understanding the topic. It cautions against pre-setting a size threshold for sampling informal firms and against relying on employment expansion as the sole proxy of growth.
Practical implications
The findings prompt a rethink of the effectiveness of conventional support programmes to drive growth of informal firms such as funding and training. Directing support measures to target growth-oriented informal firms will lead to creation of decent and sustainable jobs and formalisation.
Originality/value
With an original firm-level dataset, the study challenges a long-held assumption that growth of informal firm is negligible and shows that segments of informal firms are sustainable and could attain significant growth and derives new insights into researching and supporting informal firm growth.
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