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1 – 10 of over 2000
Article
Publication date: 8 October 2018

Lin-Hua Lu and Yi-Fen Huang

This study aims to examine what types of interfirm linkages a firm enters in relation to its manufacturing strategy. The authors further aim to determine whether…

Abstract

Purpose

This study aims to examine what types of interfirm linkages a firm enters in relation to its manufacturing strategy. The authors further aim to determine whether heterogeneous resources have different moderating effects on the relationship between a firm’s manufacturing strategy and interfirm linkages.

Design/methodology/approach

The sample consists of survey and archival data on 80 publicly listed electronics firms from the semiconductor and optoelectronics industries in Taiwan. Because the dependent variable, interfirm linkage, is a binary term, the authors apply logistic regression in our study.

Findings

This paper provides empirical insight into how a firm’s manufacturing strategy affects its probability to engage in specific types of interfirm linkages. The authors find that when a firm pursues an efficiency (flexibility) strategy, it will tend to engage in marketing (technical) interfirm linkages. In addition, absorbed slack strengthens the fit between manufacturing strategy and interfirm linkage type more than unabsorbed slack does.

Research limitations/implications

Because the sample is drawn from the Taiwanese semiconductor and optoelectronic industries, the authors encourage scholars to examine the generalizability of the findings. Future studies can furthermore adopt in-depth interviews to facilitate a better understanding of decision-makers’ considerations when entering interfirm linkages.

Originality/value

This study extends resource dependence theory across a firm’s boundary and applies the resource-based view to resource heterogeneity. The findings advance the understanding of the relationships between strategic orientation, slack resources and interfirm linkage choices. The authors show that it is important that firms consider strategic fit when they create linkages outside their existing boundaries.

Details

Chinese Management Studies, vol. 13 no. 1
Type: Research Article
ISSN: 1750-614X

Keywords

Article
Publication date: 14 December 2018

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

Abstract

Purpose

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

Design/methodology/approach

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

Findings

Companies that form associations with other firms can become better positioned to achieve sustained competitive advantage. Adopting a clearly defined manufacturing strategy should help ascertain what type of interfirm linkage to pursue. Alignment between strategy and linkage can be further strengthened by using appropriate organizational slack resources.

Originality/value

The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Details

Strategic Direction, vol. 35 no. 2
Type: Research Article
ISSN: 0258-0543

Keywords

Article
Publication date: 22 May 2009

Ananda Mukherji, John D. Francis and Jyotsna Mukherji

The purpose of this paper is to understand the nature of joint action between firms, and to examine how interfirm linkages impact the development of information systems…

Abstract

Purpose

The purpose of this paper is to understand the nature of joint action between firms, and to examine how interfirm linkages impact the development of information systems that impact joint action. The research also examines how economic dependence impacts joint action or joint activities between firms. While the importance of interfirm relations has been widely acknowledged, the relationships between buyers and suppliers can vary widely on the amount of joint action they undertake with each other.

Design/methodology/approach

Using structural equation modeling, the authors test a model of influences on joint action that incorporates elements of social norms that develop between partners, their economic dependence on each other, and a coordination mechanism of shared information systems.

Findings

The findings indicate that joint action is influenced indirectly by some elements of social exchange, and instead is directly impacted by economic dependence and information systems. Social norms, specifically commitment, do impact the development of shared information systems.

Research limitations/implications

This is a single industry study of automotive parts and accessories firms. Care should be taken in generalizing these findings to firms in similar settings – relatively small suppliers to larger assemblers or manufacturers.

Originality/value

The value of this research is to help understand the elements of interfirm relations, their impact on information systems, the overall impact of these on joint action or joint activities between firms, and the role of economic dependence.

Details

Competitiveness Review: An International Business Journal, vol. 19 no. 3
Type: Research Article
ISSN: 1059-5422

Keywords

Article
Publication date: 11 November 2014

Birthe Soppe, Christian Lechner and Michael Dowling

The purpose of this paper is to investigate vertical interfirm relationships with direct competitors – also referred to as vertical “coopetition” – in entrepreneurial…

1497

Abstract

Purpose

The purpose of this paper is to investigate vertical interfirm relationships with direct competitors – also referred to as vertical “coopetition” – in entrepreneurial firms. Specifically, this study explores the reasons for why entrepreneurial firms engage in vertical coopetition and how they manage this particular type of interfirm relationship. The paper also shed light on the causes for termination of such delicate relational arrangements.

Design/methodology/approach

The research design is exploratory. The paper analyze data collected by a survey that was specifically designed for this study. Based on the findings, the paper developed theoretical propositions specifying the conditions under which entrepreneurial firms engage in coopetition, how it is managed, and how it can be sustained.

Findings

The findings show that coopetition is a ubiquitous phenomenon for entrepreneurial firms, and mainly arises out of a deliberate strategy. In contrast to large firms, entrepreneurial firms tend to manage coopetitive relationships in a central manner. Termination was common among firms facing high risk or when alternative strategies emerged.

Research limitations/implications

This study provides a fundamental theoretical and evidence-based discussion of vertical coopetition in young firms. By doing so, the authors advance theory development, offer important insights for entrepreneurs seeking to benefit from intercompetitor linkages, and highlight promising avenues for future research.

Originality/value

The paper makes several important contributions to the coopetition literature. The paper develop a definition of vertical coopetition and study the unique aspects associated with it. In contrast to most previous research in this area, the paper focus on entrepreneurial firms. The evidence-based analysis contributes to a better understanding of the reasons for entrepreneurial firms entering and terminating coopetitive arrangements as well as how they manage these types of collaborations. The paper develops theoretical propositions and generate novel insights into the dynamics and issues that arise with coopetition in entrepreneurial firms.

Details

Journal of Small Business and Enterprise Development, vol. 21 no. 4
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 7 June 2013

Khan‐Pyo Lee and Jang‐Ho Choi

The purpose of this paper is to examine the factors that affect the stability of interfirm trading ties in China's transitional economy. In particular, the paper explores…

Abstract

Purpose

The purpose of this paper is to examine the factors that affect the stability of interfirm trading ties in China's transitional economy. In particular, the paper explores whether the propensity to engage in repeat transactions with past partners is attributable to rational choice based on expectations for the benefits of social capital, or an outcome of institutional pressure that binds firms sharing similar positions within the institutional structure bequeathed from China's socialist past.

Design/methodology/approach

This study utilizes data on the actual trading ties between 32 final vehicle assemblers and 477 parts and components suppliers in the auto industry during the period from 1998 to 2005. Using logistic regression analysis, the study highlights the factors that lead to the greater likelihood of repeat transactions between a particular pair of assemblers and suppliers.

Findings

The result of the analysis suggests that while rational motives, such as transaction cost economization, do account for the propensity to engage in repeat transactions with past partners, it also confirms the persistence of a strong tendency to continue transacting with firms sharing similar institutional lineage, regardless of the benefits that could be accrued from such durable networks.

Originality/value

This study adds to the existing literature on social networks in China by highlighting the path‐dependency and institutional legacy in the formation of business networks during China's transition towards a market economy.

Article
Publication date: 6 March 2020

Shaista Wasiuzzaman, Nabila Nurdin, Aznur Hajar Abdullah and Gowrie Vinayan

This study investigates the influence of inter-firm linkages between small and medium enterprises (SMEs) and large firms on the relationship between an SME's…

Abstract

Purpose

This study investigates the influence of inter-firm linkages between small and medium enterprises (SMEs) and large firms on the relationship between an SME's creditworthiness and its access to finance.

Design/methodology/approach

Survey questionnaire was distributed to 456 SMEs in the manufacturing sector in the Selangor and Federal Territory of Kuala Lumpur regions and a total of 145 useable responses were gathered. Investigation into the possible differences in the effect of creditworthiness – and its dimensions – on access to finance for SMEs with and without linkages are examined using Partial Least Squares-Multi Group Analysis (PLS-MGA).

Findings

It is found that the relationship between creditworthiness and access to finance is significant for both SMEs with and without links to large firms. However, no significant difference is found in the effect of creditworthiness on access to finance for both types of SME. Further analysis on the five different dimensions of creditworthiness shows statistically significant differences between SMEs with links and those without for the dimensions of collateral and condition. This implies that alliances formed between SMEs and large firms do not have much of an influence on the overall creditworthiness but do influence the collateral and condition of the SME.

Originality/value

This study contributes to the understanding of the effects of interfirm linkages on SME creditworthiness and access to finance. To the authors' knowledge no such study has been conducted on links between SMEs and large firms, especially in a developing country such as Malaysia.

Details

Journal of Small Business and Enterprise Development, vol. 27 no. 2
Type: Research Article
ISSN: 1462-6004

Keywords

Book part
Publication date: 26 August 2010

Filipe J. Sousa and Luis M. de Castro

Markets-as-networks (MAN) theorists contend, at least tacitly, the significance of business relationships to the firm – that is, business relationships contribute somewhat…

Abstract

Markets-as-networks (MAN) theorists contend, at least tacitly, the significance of business relationships to the firm – that is, business relationships contribute somewhat to corporate survival or growth. One does not deny the existence of significant business relationships but sustain, in contrast to the consensus within the MAN theory, that relationship significance should not be a self-evident assumption. For significance cannot be a taken-for-granted property of each and every one of the firm's business relationships. The authors adopt explicitly a critical realist meta-theoretical position in this conceptual paper and claim that relationship significance is an event of the business world, whose causes remain yet largely unidentified. Where the powers and liabilities of business relationships (i.e., relationship functions and dysfunctions) are put to work, inevitably under certain contingencies (namely the surrounding networks and markets), relationship effects ensue for the firm (often benefits in excess of sacrifices, i.e., relationship value) and as a consequence relationship significance is likely to be brought about. In addition, relationship significance can result from the dual impact that business relationships may have on the structure and powers and liabilities of the firm, that is, on corporate nature and scope, respectively.

Details

Organizational Culture, Business-to-Business Relationships, and Interfirm Networks
Type: Book
ISBN: 978-0-85724-306-5

Article
Publication date: 5 June 2019

Chunhsien Wang, Min-Nan Chen and Ching-Hsing Chang

The purpose of this paper is to investigate alliance partner diversity (APD) as a driving force that potentially enhances firms’ innovation generation (IG) in interfirm

Abstract

Purpose

The purpose of this paper is to investigate alliance partner diversity (APD) as a driving force that potentially enhances firms’ innovation generation (IG) in interfirm open alliance contexts. The authors propose that APD enhances IG but that the effects depend on both alliance network position and the double-edged external knowledge search strategy. Building on the knowledge-based view and social capital theory, the authors formally model how external knowledge search strategies can lead to productive or destructive acquisitions of external knowledge in interfirm open alliance networks. The authors theorize that when an individual firm adopts a central position in a complex interfirm open alliance network, its propensity toward beneficial IG depends on its knowledge search strategy (i.e. its breadth and depth) due to the joint influence of network position and knowledge search strategy on innovation.

Design/methodology/approach

Using an original large-scale survey of high-tech firms, this study shows that the relationship between partner diversity and IG is contingent on a firm’s network position and knowledge search strategy. The authors also offer an original analysis of how knowledge search strategy (i.e. its breadth and depth) in network centrality (NC) affects the efficacy of knowledge acquisition in interfirm open alliance networks. Empirically, the authors provide an original contribution to the open innovation literature by integrating social capital and knowledge-based theory to rigorously measure firm IG.

Findings

Overall, our findings suggest that the knowledge search strategy imparts a double-edged effect that may promote or interfere with external knowledge in IG in the context of the diversity of alliance partners.

Research limitations/implications

The work has important limitations, such as its analysis of a single industry in the empirical models. Therefore, further studies should consider multiple industries that may provide useful insights into innovation decisions.

Practical implications

External knowledge search is valuable, particularly in the high-tech industry, as external knowledge acquisition generates innovation output. This study serves to raise managers’ awareness of various approaches to external knowledge searches and highlights the importance of network position in knowledge acquisition from interfirm open alliance collaborations.

Originality/value

This paper is the first to investigate the double-edged effect of knowledge search on interfirm open alliance networks. It also contributes to the theoretical and practical literature on interfirm open alliance networks by reflecting on external knowledge search and underlying network centrality and APD factors.

Details

European Journal of Innovation Management, vol. 23 no. 1
Type: Research Article
ISSN: 1460-1060

Keywords

Book part
Publication date: 26 August 2010

Filipe J. Sousa

This paper exposes the development of markets-as-networks theory from formal inception in the mid-1970s until 2010 state-of-the-art, en route presenting its historical…

Abstract

This paper exposes the development of markets-as-networks theory from formal inception in the mid-1970s until 2010 state-of-the-art, en route presenting its historical roots. This largely European-based theory challenges the conventional, dichotomous view of the business world as including firms and markets, arguing for the existence of relational governance structures (the so-called “interfirm cooperation”) in addition to hierarchical and transactional ones.

Details

Organizational Culture, Business-to-Business Relationships, and Interfirm Networks
Type: Book
ISBN: 978-0-85724-306-5

Abstract

Details

Reflections and Extensions on Key Papers of the First Twenty-Five Years of Advances
Type: Book
ISBN: 978-1-78756-435-0

1 – 10 of over 2000