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Article
Publication date: 6 July 2021

Fabienne Chedid, Canan Kocabasoglu-Hillmer and Jörg M. Ries

The importance of the supply network to firm performance is well documented. Until now, the firm and its suppliers have been conceptualized as single entities. Yet…

Abstract

Purpose

The importance of the supply network to firm performance is well documented. Until now, the firm and its suppliers have been conceptualized as single entities. Yet, multinational corporations (MNCs) are composed of a complex, geographically dispersed internal network of subsidiaries. The supply and internal networks are inherently linked. The purpose of this study is to investigate the impact of the interaction of these networks on firm-level financial performance.

Design/methodology/approach

Building on supply network, internal network and dual embeddedness research, the authors investigate the interaction of these networks using supply network data from FactSet and internal network data from Orbis. We assess the impact at the MNC level, using measures of firm-level financial performance, physical proximity between the two networks and geographic dispersion of the internal network.

Findings

The results show that the performance effect of physical proximity of the firm with its supply network is negatively moderated by the geographic dispersion of the firm's internal network. This effect can be traced back to the diminishing marginal profitability of a firm's assets. Moreover, the benefits of dual embeddedness to the individual subsidiary come at a cost at the firm-level due to the operational challenges of managing a complex subsidiary network.

Research limitations/implications

This study is the first to investigate the supply and internal networks of MNCs simultaneously.

Originality/value

The paper extends supply network literature by considering the internal network of the focal firm and its suppliers. This paper is one of the first studies that offer an understanding of the interaction between supply and internal networks of a focal firm and the effect on financial performance.

Details

International Journal of Operations & Production Management, vol. 41 no. 6
Type: Research Article
ISSN: 0144-3577

Keywords

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Article
Publication date: 20 April 2018

Haiyuan Zhao and Xiaobao Peng

This paper aims to draw on the network perspective of organizational innovation to present an argument on how a subsidiary should select innovation behavior.

Abstract

Purpose

This paper aims to draw on the network perspective of organizational innovation to present an argument on how a subsidiary should select innovation behavior.

Design/methodology/approach

In this framework, the paper analyzes middle- and high-level managers of subsidiaries from various industries located in the Chinese Mainland.

Findings

The results suggest the following ideas: internal embeddedness is positively related to exploitation innovation, external embeddedness is inverted-U related to exploration innovation, the availability of alternatives positively moderates the main effects, whereas restraint in the use of power negatively moderates them.

Research limitations/implications

The current study has a few limitations that provide meaningful research directions for future investigations. First, it only considers the industry and ownership as control variables. Second, this study was conducted in the Chinese context.

Practical implications

The analysis of the relationship between embeddedness and innovation behavior also shows that focal subsidiary must dynamically adjust the way of embeddedness on the basis of its strategy, and it can reasonable leverage strategic assets for exploitation innovation or exploration innovation. From the perspective of headquarters, establishing deep embeddedness with a subsidiary and giving it indispensable support are important to promote that subsidiary’s exploitation innovation.

Social implications

The focal subsidiary should establish relationships with more alternative partners and develop relationships with power-advantaged partners through strategies such as a long-term contract, establishing an R&D alliance and entering a joint venture. Besides this, more powerful partners in the internal network should adopt various power usage strategies to promote focal subsidiary exploitation innovation and more powerful partners in the external network should show restraint in the use of power toward any subsidiary in an over-embedded situation. The result shows environment dynamism affects subsidiary exploration innovation more deeply than exploitation innovation. Consequently, managers should recognize the importance of dynamic adaptation to environmental changes and adjust their firms’ innovation behavior accordingly, especially when they are implementing an exploration innovation strategy.

Originality/value

The extent of embeddedness in an innovation network shapes the subsidiary innovation behavior, and this effect is moderated by power. The focal subsidiary should dynamically and strategically adjust its innovation behavior considering various its type and level of embeddedness.

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Article
Publication date: 2 September 2014

Shelly Y. McCallum, Monica L. Forret and Hans-Georg Wolff

The purpose of this paper is to examine the relationships of internal and external networking behaviors of managers and professionals with their affective, continuance…

Abstract

Purpose

The purpose of this paper is to examine the relationships of internal and external networking behaviors of managers and professionals with their affective, continuance, and normative commitment.

Design/methodology/approach

Data were obtained from 335 managers and professionals of a health system who completed a survey on networking behavior and organizational commitment. Correlation analyses and multiple regressions were performed to test our hypotheses.

Findings

The results showed that networking behavior focussed within an individual's organization was positively related with affective commitment and normative commitment. Networking with individuals outside of an individual's organization showed a significant negative relationship with normative commitment. Contrary to expectations, networking externally was not related to affective commitment, and neither internal nor external networking behaviors were related to continuance commitment.

Research limitations/implications

Because data were collected at a single point in time, no statements can be made about causality. Future research is needed assessing both internal and external networking behavior and the three types of organizational commitment across time to help determine direction of causality or whether reciprocal relationships exist.

Practical implications

Organizations that encourage internal networking behaviors may see individuals who are more connected with their colleagues and affectively committed to their organizations. However, encouraging external networking behavior may result in a drop in normative commitment as individuals might identify more with their profession than their employer.

Originality/value

Although previous research has shown that networking behavior is related to job performance and career success measures, the research extends the literature by investigating whether networking is related to attitudinal variables such as organizational commitment. The paper explores whether differential relationships exist between internal and external networking behavior with three types of organizational commitment.

Details

Career Development International, vol. 19 no. 5
Type: Research Article
ISSN: 1362-0436

Keywords

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Article
Publication date: 8 August 2016

Yang Cheng, Atanu Chaudhuri and Sami Farooq

The purpose of this paper is to investigate the relationships at the level of plant in a manufacturing network, labelled as networked plant in the paper, between…

Abstract

Purpose

The purpose of this paper is to investigate the relationships at the level of plant in a manufacturing network, labelled as networked plant in the paper, between inter-plant coordination and operational performance, supply chain integration (SCI) and operational performance and inter-plant coordination and SCI.

Design/methodology/approach

This paper is developed based on the data obtained from the sixth version of International Manufacturing Strategy Survey (IMSS VI). Specifically, this paper uses a subset of the IMSS VI data set from the 606 plants that identified themselves as one of the plants in a manufacturing network.

Findings

This paper finds that external integration is significantly related to operational performance of networked plant, whereas internal integration is not. As an enabler for external integration, the influence of internal integration on operational performance of networked plant is mediated by external integration. This paper also provides evidence to the purported positive impact of internal integration on inter-plant coordination, as well as the positive impact of inter-plant coordination on external integration. It further suggests that inter-plant coordination can influence operational performance of networked plant through external integration and also mediate the relationship from internal integration to performance through external integration.

Originality/value

This paper contributes to the SCI literature and extends the understanding of the impact of SCI on the operational performance by selecting networked plant as a unit of analysis. Besides, this paper distinguishes inter-plant coordination from SCI and investigates the relationship between inter-plant coordination, SCI, and operational performance for the first time.

Details

Supply Chain Management: An International Journal, vol. 21 no. 5
Type: Research Article
ISSN: 1359-8546

Keywords

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Article
Publication date: 4 July 2016

Levente Szász, Maike Scherrer and Patricia Deflorin

The purpose of this paper is to offer deeper insight into the relationship between a subsidiary’s internal integration in its manufacturing network and subsidiary-level…

Abstract

Purpose

The purpose of this paper is to offer deeper insight into the relationship between a subsidiary’s internal integration in its manufacturing network and subsidiary-level operational performance by taking into account the country context of the respective subsidiary.

Design/methodology/approach

Subsidiary-level information is gathered using the sixth round of the International Manufacturing Strategy Survey, thus including 507 subsidiaries from 22 countries. Country context is operationalised using the Global Competitiveness Report published by the World Economic Forum.

Findings

The findings reveal that internal integration has a positive influence on operational performance improvement. Country context acts as a moderator on this relationship: subsidiaries in less developed countries are only able to improve their effectiveness (quality, flexibility, delivery), while developed country subsidiaries gain both effectiveness and efficiency (cost, time) benefits from internal integration.

Research limitations/implications

The unit of analysis is the knowledge-receiving subsidiary without taking the characteristics of the sending unit or that of the whole network of subsidiaries into account. Based on the context-dependency of the integration-performance relationship found in this paper, a future research agenda is proposed including further factors (absorptive capacity, knowledge complementarity, organisational practices) that could influence this relationship.

Practical implications

Subsidiary managers in less developed countries should strive to acquire intra-network knowledge related to effectiveness, while managers in developed countries can expect both efficiency and effectiveness benefits.

Originality/value

A large-scale survey encompassing subsidiaries from both emerging and developed countries is used to offer deeper insight into the relationship between internal integration and performance. The paper provides a possible explanation for previous mixed findings on this relationship. The differentiation between efficiency and effectiveness performance shows that country context represents an important factor that moderates the integration-performance relationship.

Details

International Journal of Operations & Production Management, vol. 36 no. 7
Type: Research Article
ISSN: 0144-3577

Keywords

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Article
Publication date: 27 July 2012

Maciej Mitręga

Marketing is the area of coexistence of various research traditions with regard to relational phenomena. This study aims to contribute to limiting the gap between these…

Abstract

Purpose

Marketing is the area of coexistence of various research traditions with regard to relational phenomena. This study aims to contribute to limiting the gap between these traditions by testing the influence of network partner knowledge and internal relationship quality on company performance and customer relationship quality.

Design/methodology/approach

This is a research paper where hypotheses are derived from prior studies referring to relationship marketing, B2B networks and internal marketing. The hypotheses are tested by using a sample of 264 companies operating in B2B markets and by structural equation modeling.

Findings

Customer relationship quality is empirically supported here as a factor mediating influence of network partner knowledge and internal relationship quality on company performance. The proposition of this paper is that company ability to deal effectively with a network in which it is embedded (including internal network) is the antecedent of dealing with customer relationships effectively. The moderator effects of the dominant profile of business are also discussed.

Research limitations/implications

The limitations of the research are presented with regard to the sampling method, research technique/scope and cultural context. The research results may be treated as a direction for further studies exploring connections between constructs from various approaches to relational phenomena in marketing.

Practical implications

This study brings strategic insights into knowledge of business relationships, by investigating empirically whether the focal company may benefit from their external and internal relationships.

Originality/value

To the best of the author's knowledge, there has been no study examining the proposed set of inter‐related research constructs so far.

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Book part
Publication date: 13 August 2014

Elina Pernu, Tuija Mainela and Vesa Puhakka

The present study approaches multinational corporations as internal networks that are constantly newly organized on the basis of relationships, operations, activities, and…

Abstract

The present study approaches multinational corporations as internal networks that are constantly newly organized on the basis of relationships, operations, activities, and tasks at hand. It combines MNCs-as-networks view with the research on supplier–customer relationship development to conceptualize the relational dynamics in the MNCs. The dynamics are seen created as the interplay of organizing within internal networks and managing of the global customer relationships. Through an empirical study on a project business MNC and analysis of the events in its global customer relationship the study defines strategies of political compromising in MNC internal networks.

Details

Orchestration of the Global Network Organization
Type: Book
ISBN: 978-1-78350-953-9

Keywords

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Book part
Publication date: 10 August 2016

Ulf Andersson, Suma Athreye and Georgios Batsakis

We argue that a foreign-based R&D subsidiary of a multinational enterprise (MNE) can potentially source knowledge from three diverse knowledge networks, namely (i…

Abstract

We argue that a foreign-based R&D subsidiary of a multinational enterprise (MNE) can potentially source knowledge from three diverse knowledge networks, namely (i) external knowledge network of the home country, (ii) external knowledge network of the host country, and (iii) internal (MNE) knowledge network. Drawing on the relative costs and benefits associated with the process of synergistic knowledge, this study examines whether a substitutive or a complementary relationship exists when two of the aforementioned networks collaborate in order to generate new knowledge at the subsidiary level. Our study’s sample is based on a survey questionnaire addressed to foreign-based R&D subsidiaries of Fortune 500 companies. We assess the existence of complementarity/substitutability using the “production function approach.” Our results indicate that a complementary relationship exists between external knowledge network of the host and the home country, as well as between external knowledge network of the host country and internal knowledge network. On the other hand, external knowledge network of the home country and internal knowledge network form a substitutive relationship. Our study offers a more comprehensive view of the diverse sources/knowledge networks that R&D subsidiaries are sourcing knowledge from when compared to existing research. We also specify and account for the costs/benefits involved in knowledge sourcing and thereby detect possible substitution/complementarity between different sources of knowledge. So far, there has been limited to nonexistent research into the diversity of knowledge networks of R&D subsidiaries and the examination of potential substitutabilities and complementarities. Hence our empirical study contributes to the development of this particular research stream.

Details

Perspectives on Headquarters-subsidiary Relationships in the Contemporary MNC
Type: Book
ISBN: 978-1-78635-370-2

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Article
Publication date: 10 June 2020

Yu Liu and Houjian Li

The purpose of this paper, based on first-hand data from 255 chairmen of planting cooperatives in Sichuan province, is threefold: to understand their social network

Abstract

Purpose

The purpose of this paper, based on first-hand data from 255 chairmen of planting cooperatives in Sichuan province, is threefold: to understand their social network heterogeneity; to understand the significance for members of marketing innovation in farmers' cooperatives and to understand the effects of chairmen's social network heterogeneity on cooperative marketing innovation.

Design/methodology/approach

The research employs an empirical survey of the chairmen of planting cooperatives in rural Sichuan province. The researchers use the ordinary least squares method to conduct regression on the data and the generalized linear model to process the data and avoid errors in the model setting. In the study, the following two hypotheses are examined: (1) The heterogeneity of chairmen's social networks has positive effects on cooperative marketing innovation; (2) The effects of heterogeneous external and internal social networks on cooperative marketing innovation are different.

Findings

The results show that both external and internal social network heterogeneity has positive effects on cooperative marketing innovation, and the effects of internal heterogeneity are greater than that of external heterogeneity.

Originality/value

This paper contributes to improving the income of farmers, the innovation of farmers' cooperatives and the development of agriculture in China. It provides a new way of managing and serving members to enable the long-term sustainable development of farmers' cooperatives.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 10 no. 5
Type: Research Article
ISSN: 2044-0839

Keywords

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Article
Publication date: 18 May 2020

Wenqing Wu, Hongxin Wang and Fu-Sheng Tsai

This study analyses the relationship between the networks of business incubators (BIs) and new venture performance. It proposes an integrated model for identifying the…

Abstract

Purpose

This study analyses the relationship between the networks of business incubators (BIs) and new venture performance. It proposes an integrated model for identifying the influence of BIs' internal and external networks on new venture performance through the entrepreneurial orientation (EO) and environmental dynamism.

Design/methodology/approach

The study uses multiple regression analysis on a sample of 205 new ventures in Chinese BIs.

Findings

Both the internal and external networks of BIs positively affect new venture performance and EO has a mediating effect in this relationship. Environmental dynamism plays a positive moderating role in the relationship between BIs' internal and external networks and EO.

Practical implications

Based on the results of this study, incubator managers should focus on creating internal and external networks and leveraging network embeddedness to influence new venture performance. Further, new ventures should focus on strengthening their EO and fully consider the impact of environmental dynamism on EO implementation.

Originality/value

To address the research gaps in understanding how BI networks can support new venture growth, this study integrates BIs' internal and external networks and explores their impacts on new venture performance using co-production theory and the resource-based view. It thus opens the black box on how BI's networks affect performance from the EO perspective. Moreover, this study fully clarifies chain relationships by identifying and analysing the moderating role of environmental dynamism.

Details

Journal of Small Business and Enterprise Development, vol. 27 no. 5
Type: Research Article
ISSN: 1462-6004

Keywords

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