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1 – 10 of over 64000Sussie C. Morrish and Anna Earl
The purpose of this study is to investigate the influence of network relationships and institutional environment on premium winegrowers’ internationalization process.
Abstract
Purpose
The purpose of this study is to investigate the influence of network relationships and institutional environment on premium winegrowers’ internationalization process.
Design/methodology/approach
This study uses a case study approach to examine two premium wine producers engaged in internationalization. The data sources consist of semi-structured interviews, observations at three major events and secondary data sourced from industry reports and materials that are available online.
Findings
Findings illustrate that both personal and inter-firm networks help wineries to internationalize. Inter-firm networks play a significant role in gaining international legitimacy. Personal networks were found to be more important in establishing brand authenticity that facilitates wineries in their internationalization process. Gaining international legitimacy and establishing brand authenticity are crucial in the successful internationalization of premium wineries.
Research limitations/implications
This study provides an explanation of how networks can be put into institutional context. Future studies could map out the formal and informal institutions within the wine industry and investigate the closer dynamics among the different actors in the whole network. A whole network is formally structured and governed, yet still built on the relationships among members, making it a very complex phenomenon. This would allow the evaluation of multilateral ties that link firms and actors within the network and how this affects the internationalization process.
Practical implications
This paper provides managers with insights on how they can capitalize on their inter-firm and personal networks to help them deal with domestic and international institutional environments when embarking on internationalization activities.
Originality/value
This paper adds to the existing literature on networks relationships and provides an important link between networks, institutions and internationalization.
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Wouter MG Van Bockhaven, Paul Matthyssens and Koen Vandenbempt
This paper aims to apply innovation networks (INs) theory to the context of domesticated markets, where innovation triggers deinstitutionalization. In such contexts, the success…
Abstract
Purpose
This paper aims to apply innovation networks (INs) theory to the context of domesticated markets, where innovation triggers deinstitutionalization. In such contexts, the success of INs depends on their capacity to transform the business field in which they are embedded, so that it accommodates innovative business models. Such “institutional INs” beget a meso-level finality, and this poses different requirement on their effectiveness. The purpose of this paper is to confront extant models of collaborative innovation in networks with this specific context to offer exploratory insights into how innovation can be achieved in domesticated contexts and what the differential implications are for network configurations and strategic “reinstitutionalization” practices.
Design/methodology/approach
Based on an illustrative embedded case study in the Dutch steel industry, a framework offering indications on the effectiveness of discrete configurational dimensions and their fit with reinstitutionalization practices for institutional INs is suggested. The case builds on 26 semi-structured interviews and 4 focus groups with top managers in the industry. As the aim is to extend theoretical models of INs to this under-researched context, an abductive approach to theorizing, consistent with the extended case method, is adopted.
Findings
Findings suggest that collaborating to redesign an institutionalized business field collectively implies a more explicit attention to interdependencies within the business field.
Practical implications
Besides suggesting modifications to extant frames regarding heterogeneity in and the configuration of networks, this paper has some practical implications. The framework proposed offers managers some support in the largely ignored issue of developing a collective action network. With these findings, we aspire to stimulate further research into this relevant, yet underdeveloped, topic.
Originality/value
The study extends IN theory toward innovation realization in domesticated contexts. In such contexts, IN’s success depends on their capacity to transform the business field in which they are embedded, so that it enables innovative ways of creating end-customer value. Besides suggesting a new area for theorizing about innovation networks, institutional innovation networks are also a useful template for institutional innovation and collective action research. The paper offers a framework to support managers in the largely ignored challenge of developing a collective action network. In an increasingly transparent, connected and consolidated business environment, such a challenge becomes ever more essential.
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Lasse Torkkeli, Olli Kuivalainen, Sami Saarenketo and Kaisu Puumalainen
The purpose of this paper is to examine the impact of institutional environment on the international performance of small- and medium-sized enterprises (SMEs) and how this…
Abstract
Purpose
The purpose of this paper is to examine the impact of institutional environment on the international performance of small- and medium-sized enterprises (SMEs) and how this relationship is influenced by network competence.
Design/methodology/approach
This study uses a quantitative approach. In total, 119 internationally operating Finnish SMEs from five industry sectors are sampled via a cross-sectional survey. Data are analysed through regression modelling.
Findings
The international performance of SMEs is influenced directly and indirectly by institutional drivers. The results show that network competence mediates the positive relationship between institutional drivers and international performance.
Research limitations/implications
Network capability development can help SMEs leverage more or less favourable institutional environments for successful internationalisation. Perceived institutional drivers directly result in higher performance, but the effect can be partially mediated by dynamic capabilities. The limitations of the study include its single-country context and the cross-sectional nature of the data.
Practical implications
SMEs should take their home countries’ institutional environments into account, but for long-term success, they should develop the ability to manage their business networks. A conducive institutional environment may help develop competence, which in turn can enable more successful internationalisation in terms of scale, scope and satisfaction.
Social implications
Decision-makers may benefit from knowing that, in addition to capabilities, an institutionally conducive environment that drives domestic SMEs towards international markets may be an antecedent of successful internationalisation in the SME sector.
Originality/value
This is one of the few studies to illustrate how network capabilities can mediate the influence of institutional factors on entrepreneurial internationalisation. It combines institutional theory and the dynamic capabilities view to explain successful SME internationalisation.
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George Okello Candiya Bongomin, John C. Munene, Joseph Mpeera Ntayi and Charles Akol Malinga
The purpose of this paper is to report the findings on the mediating effect of social network in the relationship between institutional framework and financial inclusion in rural…
Abstract
Purpose
The purpose of this paper is to report the findings on the mediating effect of social network in the relationship between institutional framework and financial inclusion in rural Uganda.
Design/methodology/approach
The study employs a cross-sectional research design to collect data used to test for mediation under this study. Structural equation model (SEM) through use of bootstrap in the Analysis of Moment Structures (AMOS) was adopted to establish the existence and type of mediation by social network in the relationship between institutional framework and financial inclusion.
Findings
Social network had a partial mediating effect in the relationship between institutional framework and financial inclusion. In addition, institutional framework through its regulative, normative and cultural-cognitive pillars also exhibited a significant direct effect on financial inclusion. Besides, social network had a positive and significant effect on financial inclusion. This suggest that there exist both a direct effect of institutional framework on financial inclusion and an indirect effect of institutional framework through social network on financial inclusion.
Research limitations/implications
While the sample for this study was big enough, it limited itself to only poor households in rural Uganda. Besides, the current study adopted cross-sectional design, thus, leaving out longitudinal design to investigate the characteristics in the sample over time.
Practical implications
The study makes significant empirical contribution and implications to financial inclusion policy makers on evidence of the critical role played by social network in indirectly enhancing the relationship between institutional framework and financial inclusion of the poor who are vulnerable to exclusion by main stream financial services’ providers.
Originality/value
The study recommends that social network, which acts as a conduit through which useful information flow and can be shared, plays a critical role in mediating the relationship between institutional framework and financial inclusion in rural Uganda. Therefore, the study contributes to existing body of literature by highlighting the mediating influence of social network in the relationship between institutional framework and financial inclusion, especially in rural Uganda.
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Eksa Kilfoyle and Alan J. Richardson
The purpose of this paper is to adopt “whole network” perspective and analyzes the governance and control mechanisms in the Universal Postal Union (UPU), one of the oldest and…
Abstract
Purpose
The purpose of this paper is to adopt “whole network” perspective and analyzes the governance and control mechanisms in the Universal Postal Union (UPU), one of the oldest and largest inter-governmental networks, through the lens of institutional entrepreneurship theory. The purpose is to introduce a typology of network governance forms to the accounting literature and to analyze the governance and management control mechanisms within the UPU, a “participatory federation” (Provan, 1983) type of network that has managed the challenges of collective collaboration since 1875.
Design/methodology/approach
The study benefits from unlimited access to all archival materials of the UPU such as minutes of Congress and committee meetings since 1875 as well as secondary documents and market studies related to the postal sector. The data reported in this study are derived from the archives of the UPU in Berne, Switzerland and interviews conducted with senior officials.
Findings
Drawing on the work of Provan (1983) and Provan and Kenis (2008) the authors identify five “ideal type” network governance forms based on such variables as differences in the relative power of network participants and whether these networks have arisen spontaneously or due to external coercion, the authors classify the UPU as a “participatory federation.” Within the theoretical boundaries of this typology the authors identify the multi level governance structures and the use of management control mechanisms by each level of governance. The authors introduce a distinction between the “network constitutional organization” that focusses on the socialization of network members and strategy-level orchestration of the overall network and the “network administrative organization” (NAO) that mobilizes management accounting and control mechanisms to monitor, encourage and facilitate member collaboration. The authors propose that control within a participatory federation is enacted through collective entrepreneurship by governance bodies using management accounting and control mechanisms as institutional carriers.
Research limitations/implications
The paper is focussed on the current state of the UPU’s network structure and processes and did not explore the dynamics around the emergence of the different network governance and control mechanisms. An exploration of the collective construction by network participants of the need for these mechanisms would provide insights into how they emerge and might lead to a better understanding of the role of NAOs in networks.
Practical implications
The paper highlights the challenges faced by collaborative networks and identifies enabling characteristics of a participatory federation’s governance bodies. The empirical observations within the context of the UPU contribute to the theoretical understanding of the desirable characteristics of participatory federations that might be applicable to similar public and private collaborative networks
Originality/value
This study expands the knowledge of management accounting and control systems in networks. It bridges a gap in the accounting literature by adopting a “whole network” perspective and by differentiating types of network governance structures that use management accounting and control systems. This contributes to the understanding of accounting and control across the full range of organizational forms.
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Purpose – This study develops a theoretical argument that social networks are embedded in the macro-level institutional environment. From the perspective of institutional…
Abstract
Purpose – This study develops a theoretical argument that social networks are embedded in the macro-level institutional environment. From the perspective of institutional embeddedness, I investigate the changing patterns and implications of social networks in job search and job earnings after China's overhaul of its employment system in the mid-1990s.Methodology/approach – The empirical evidence is drawn from 2003 Chinese General Social Survey data. I conduct statistical analyses to examine the roles of networks in job search and earning disparity by comparing two groups who obtained the job before and after the emerging labor market in urban China, respectively.Findings –Social networks have become much more popular in job search in the emerging labor market. Use of social networks in job search has also become more differentiated across job positions and employment organizations. While managerial status of the key helper and direct ties yield greater returns to employee earnings, strong indirect ties make less contribution to job earnings in the emerging labor market than that under the state-dominated employment system.Research implications – The findings suggest that we should analyze the concrete institutional environment to appreciate the roles of social networks in job search and social inequality.Originality/value – This study highlights that institutions are the key factor to shape the patterns and significance of social networks. As institutions evolve, network patterns and their significance can change accordingly.
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Ofer Dekel-Dachs, Marta Najda-Janoszka, Peter Stokes, Amon Simba and Shlomo Tarba
This study, a systematic review, focuses on the internationalisation of small and medium-sized enterprises (SMEs) originating in developing countries. It critically analyses…
Abstract
Purpose
This study, a systematic review, focuses on the internationalisation of small and medium-sized enterprises (SMEs) originating in developing countries. It critically analyses, evaluates and synthesises studies featuring formal and informal institutions, embedded in social and business networks, as a marketing solution for institutional voids. The review shows that current international marketing studies downplay the role of informal institutions in the internationalisation of SMEs. Thus, the authors set a new research agenda for advancing the institutional theory to account for the impact of informal institutions and networks on firm internationalisation.
Design/methodology/approach
This review followed five structured stages, including framing the research questions, identifying relevant studies, assessing their quality, summarising the evidence and interpreting the findings. Based on the systematic approach, 434 papers (374 from Web of Science, 60 from Scopus) were generated. Following that, the authors applied the qualitative inclusion/exclusion criteria, which yielded 63 papers. Their analysis involved three authors, with the fourth author focusing on ensuring quality in the analysis.
Findings
The study findings invite a different line of theorising market structures and processes focusing on the role of networks as an alternative to formal institutional systems. The outcome of our review suggests that there is scope for developing the institutional theory that account for the role of informal institutions and networks.
Originality/value
Based on the analysis, we call for new theorisation, in the international marketing literature, which accounts for informal networking amongst internationalising SMEs in the light of institutional voids. Thus, the authors promote novel participatory, bottom to top understanding of relationship between institutions and enterprises.
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Timo Järvensivu, Pirjo Lukkari and Paavo Järvensivu
The purpose of this paper is to discuss the impact of the institutional environment on strategic networks including their cohesiveness as well as institutional entrepreneurship…
Abstract
Purpose
The purpose of this paper is to discuss the impact of the institutional environment on strategic networks including their cohesiveness as well as institutional entrepreneurship activities conducted by members of these networks.
Design/methodology/approach
The paper presents a case study of the trade association Pharma Industry Finland (PIF) and its institutional environment.
Findings
Institutional environment and institutional entrepreneurship of a strategic network are intertwined in various ways. Changes in the institutional environment influence the strategic cohesiveness of the network and the mutual goals of its network members. As a result, PIF proactively engages in entrepreneurial activities to realize its interests.
Research limitations/implications
The paper of one network and one institutional environment is limited in generalizability. Further research is needed to explore if similar results can be obtained in other contexts.
Practical implications
In order to be successful, companies should be able to sense and evaluate which matters can be effectively addressed through collective institutional entrepreneurship and/or the company's own entrepreneurial activity.
Originality/value
This empirical study contributes to discussions on the theoretical understanding of strategic networks in relation to institutional environments, institutionally bounded strategizing in networks, and institutional entrepreneurship in business networks.
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Manuel Chabier Escolá, Raul Serrano and Juan Ramón Ferrer
The purpose of this paper is to investigate the moderating effect of business networks on the export performance of firms.
Abstract
Purpose
The purpose of this paper is to investigate the moderating effect of business networks on the export performance of firms.
Design/methodology/approach
Following recent studies conducted from a network perspective, this moderating effect is studied for different types of business networks. To do this, a two-step Heckman-probit model is implemented for a sample of more than 2,000 manufacturing companies with information from the years 2006 to 2012. This study analyses the effect of nine variables of institutional distance between Spain and four geographical areas for collaborating and non-collaborating firms.
Findings
The main contribution of this paper is suggesting that vertical networks reduce the negative effects of institutional distance faced by the company in the early stages of its export process.
Practical implications
According to the results of this paper, managers should make a greater effort to expand their networks when they want to start exporting to further markets, as some networks reduces the negative effect of distance on export propensity. Moreover, the results also suggest that participating within a network may not be sufficient to increase the propensity to export of a firm, being important the kind of network in which companies participate.
Originality/value
The originality of this paper lies in providing empirical evidence that distinct kind of networks have different effect on the internationalisation process of companies, and that they affect not only directly as previous studies showed but also indirectly moderating the negative effect of the differences between markets.
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Jefferson Marlon Monticelli and Douglas Wegner
This study aims to analyze the dynamics of the institutional change and institutional stability undergone by strategic networks (SNs) in the pharmaceutical industry.
Abstract
Purpose
This study aims to analyze the dynamics of the institutional change and institutional stability undergone by strategic networks (SNs) in the pharmaceutical industry.
Design/methodology/approach
The authors performed a case study with four Brazilian SNs which followed different patterns of institutional change and institutional stability. Twenty network managers and network members from the pharmaceutical industry were interviewed, and documents were analyzed.
Findings
The results show how and why institutions changed or remained the same. More specifically, exogenous shocks can negatively impact the competitive environment influencing institutional change in SNs. Moreover, endogenous shocks may prevent institutional change and stimulate institutional stability. Continuous interaction between institutions and SNs is the key to institutional change, especially if public and private policies are considered a source of political institutions.
Originality/value
Research has highlighted the endogenous influence of SNs on firms in selecting their partners and arranging their positions in the SNs, but little attention has been paid to how SNs themselves respond to institutions or promote institutional change. This study explains how and why change fails at the network level, additionally pinpointing the main sources of the institutional change and inertia in SNs. As such, network members may use different strategies to stimulate institutional change or stability according to their interests.
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