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Book part
Publication date: 23 September 2005

Stephanie A. Fernhaber and Patricia P. McDougall

International new ventures have been argued to seek foreign markets from inception in response to the external environment and/or motivations internal to the firm. For…

Abstract

International new ventures have been argued to seek foreign markets from inception in response to the external environment and/or motivations internal to the firm. For example, a new venture that exists in an industry that is more globally integrated is more likely to have a need to internationalize in order to remain competitive (Shrader, Oviatt, & McDougall, 2000). Similarly, those new ventures that have limited domestic growth due to the size of their home country may look elsewhere in order to gain a sufficient level of sales to survive (Zahra & George, 2002). Some of the many firm-specific motivations to internationalize might include the desire to fully exploit a unique product (Burgel & Murray, 2000; Oviatt & McDougall, 1994, 1995), capitalize on the learning advantage of newness (Autio, Sapienza, & Almeida, 2000) or take advantage of networking opportunities (Reuber & Fischer, 1997).

Details

International Entrepreneurship
Type: Book
ISBN: 978-0-76231-227-6

Book part
Publication date: 24 August 2011

Breda Kenny and John Fahy

The study this chapter reports focuses on how network theory contributes to the understanding of the internationalization process of SMEs and measures the effect of network

Abstract

The study this chapter reports focuses on how network theory contributes to the understanding of the internationalization process of SMEs and measures the effect of network capability on performance in international trade and has three research objectives.

The first objective of the study relates to providing new insights into the international market development activities through the application of a network perspective. The chapter reviews the international business literature to ascertain the development of thought, the research gaps, and the shortcomings. This review shows that the network perspective is a useful and popular theoretical domain that researchers can use to understand international activities, particularly of small, high technology, resource-constrained firms.

The second research objective is to gain a deeper understanding of network capability. This chapter presents a model for the impact of network capability on international performance by building on the emerging literature on the dynamic capabilities view of the firm. The model conceptualizes network capability in terms of network characteristics, network operation, and network resources. Network characteristics comprise strong and weak ties (operationalized as foreign-market entry modes), relational capability, and the level of trust between partners. Network operation focuses on network initiation, network coordination, and network learning capabilities. Network resources comprise network human-capital resources, synergy-sensitive resources (resource combinations within the network), and information sharing within the network.

The third research objective is to determine the impact of networking capability on the international performance of SMEs. The study analyzes 11 hypotheses through structural equations modeling using LISREL. The hypotheses relate to strong and weak ties, the relative strength of strong ties over weak ties, and each of the eight remaining constructs of networking capability in the study. The research conducts a cross-sectional study by using a sample of SMEs drawn from the telecommunications industry in Ireland.

The study supports the hypothesis that strong ties are more influential on international performance than weak ties. Similarly, network coordination and human-capital resources have a positive and significant association with international performance. Strong ties, weak ties, trust, network initiation, synergy-sensitive resources, relational capability, network learning, and information sharing do not have a significant association with international performance. The results of this study are strong (R2=0.63 for performance as the outcome) and provide a number of interesting insights into the relations between collaboration or networking capability and performance.

This study provides managers and policy makers with an improved understanding of the contingent effects of networks to highlight situations where networks might have limited, zero, or even negative effects on business outcomes. The study cautions against the tendency to interpret networks as universally beneficial to business development and performance outcomes.

Details

Interfirm Networks: Theory, Strategy, and Behavior
Type: Book
ISBN: 978-1-78052-024-7

Keywords

Article
Publication date: 5 April 2022

Xiangyang Wang, Jiamin Li and Ying Qi

This paper aims to adopt the knowledge-based view and social network theory to investigate the relationship between network capability ambidexterity and knowledge creation…

Abstract

Purpose

This paper aims to adopt the knowledge-based view and social network theory to investigate the relationship between network capability ambidexterity and knowledge creation (KC) in the context of open innovation. It also examines the moderating effects of innovation climate on this relationship.

Design/methodology/approach

This paper developed a model including network capability ambidexterity, innovation climate and KC. A total of 463 samples were collected from China to test the model and hypotheses by SEM.

Findings

The empirical results indicate that network capability ambidexterity is the crucial antecedent of KC. Specifically, network capability ambidexterity consists of the balanced and combined dimensions that both have significant and positive effects on KC. More importantly, the balanced dimension has a stronger effect on KC than the combined. In addition, an innovation climate positively moderates the effects of network capability ambidexterity and KC.

Originality/value

This study advances a new understanding of how network capability ambidexterity influences KC. Moreover, investigating the relationships should provide fresh insights into network capabilities and KC for practitioners in the open innovation context.

Details

Journal of Knowledge Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1367-3270

Keywords

Open Access
Article
Publication date: 7 June 2021

Taisson Toigo, Douglas Wegner, Silvio B. da Silva and Felipe de Mattos Zarpelon

This study aims to present a theoretical analysis on the capabilities (at the organizational) and skills (at the individual level) of the hub organization (orchestrator…

Abstract

Purpose

This study aims to present a theoretical analysis on the capabilities (at the organizational) and skills (at the individual level) of the hub organization (orchestrator) in an innovation network.

Design/methodology/approach

The authors conducted literature reviews on the orchestration of innovation networks; and networking capabilities.

Findings

This study presents a theoretical model and a research agenda.

Originality/value

In interorganizational relations, a central actor can stand out the role of intentionally creating, extracting and distributing value in the network, generating gains for all members. Literature recognizes this set of intentional and deliberate actions as the “orchestration” of resources in the network. Despite the increasing interest regarding the theme, the phases and specific capabilities for orchestration still lack further investigation.

Details

Innovation & Management Review, vol. 18 no. 2
Type: Research Article
ISSN: 2515-8961

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Article
Publication date: 9 September 2021

Adler Haymans Manurung and Randy Kurniawan

This study aims to examine the joint impact of networking capability and agile project management on organizational agility of telecommunication technology providers' in…

Abstract

Purpose

This study aims to examine the joint impact of networking capability and agile project management on organizational agility of telecommunication technology providers' in Indonesia. The study also examines the moderating role of market orientation as a predominant strategic orientation on the relationship between agile project management and organizational agility.

Design/methodology/approach

Research data were collected via a questionnaire survey from the executive management of telecommunication technology providers in Indonesia to obtain 150 valid questionnaires for analysis. This study analyzed the overall model fit and causal relationship using confirmatory factor analysis and structural equation modeling.

Findings

The results indicate that networking capability positively affects organizational agility. However, agile project management's significant effect on organizational agility occurs only when the relationship is moderated by market orientation. The results of the study also demonstrate that organizational agility positively affects organizational performance.

Research limitations/implications

This study is based on a cross-sectional nature and might fail to capture the studied variables' dynamic over an extended period.

Originality/value

The study enriches the previous literature in organizational agility by presenting the collective impact of networking capability and agile project management and the moderating role of market orientation. However, dissimilar with major prior studies, the results indicate that agile project management's direct effect on organizational agility is not significant. Agile project management needs to be moderated by market orientation to create exceptional customer values and overcome the competition for the organization to achieve organizational agility, responsiveness and adaptability to address customers' needs and requirements. Furthermore, the study's result corroborates the importance of organizational agility to achieve organizational performance in the highly dynamic telecommunication industry.

Details

International Journal of Managing Projects in Business, vol. 15 no. 1
Type: Research Article
ISSN: 1753-8378

Keywords

Article
Publication date: 5 April 2021

Mohammadreza Arasti, Nima Garousi Mokhtarzadeh and Ismail Jafarpanah

The purpose of this paper is to scrutinize the existing literature and provide a comprehensive overview by compiling and synthesizing the dispersed body of knowledge in…

Abstract

Purpose

The purpose of this paper is to scrutinize the existing literature and provide a comprehensive overview by compiling and synthesizing the dispersed body of knowledge in the networking capability (NC) literature stream. Therefore, this review study contributes to the research by presenting a summary of the NC complex construct.

Design/methodology/approach

The authors have tried to cover the literature gap in the NC area through a systematic review.

Findings

The theoretical contributions of this study to the NC literature stream are fourfold. First, while critically reviewing existing definitions, the authors present an integrated definition of NC. Second, the authors delineate the conceptual boundary between NC and other similar capabilities. Third, the authors found that the focal firms’ NC consists of two key dimensions: network development capability (NDC) and network management capability (NMC). Fourth, they contribute to the literature by providing a set of suggestions for further research in the NC literature stream.

Research limitations/implications

This study has some limitations, like other review studies. First, although the authors have tried their best to conduct a comprehensive literature search, they may have missed a study. Second, it should be noted that this study has confined itself to a particular stream of literature. Undoubtedly, in other streams, there will be issues similar to the concepts discussed in this study. The main purpose of this study is to integrate a series of studies that have a common theoretical foundation and fall within a particular literature stream. Although the focus of this study may be positive, it can be said that the deprivation of achievements from other similar streams is one of the limitations of this study. Third, another limitation of this study is the lack of verification of the conceptual framework derived from the literature that needs to be addressed in future research.

Practical implications

This study suggests a set of practical implications for industrial managers. First, the authors summarize the firms’ capabilities needed to develop and manage networks in one single source. Based on the conceptual framework of this study, firms can develop managerial tools, technological options, checklists and questionnaires and monitor the status of NC in their surrounding network on an ongoing basis. Second, the present research shows that some NCs are more repetitive than others, and therefore, it can be said that managers should pay more attention to them. The critical NCs, such as determining network position, determining network size, partner selection and attraction, coordination, inter-firm knowledge sharing and conflict resolution, are included in this study. Third, the argument of this study that both NDC and NMC should be considered simultaneously can be thought of as an important practical implication. Although in terms of the network life cycle, NDC is required earlier than NMC, these two capabilities should be used in parallel. Managers should not expect network development to be perfect and then network management to begin; therefore, NMCs should be used during network development.

Originality/value

Research shows that most network studies focus more on network antecedents and outputs and less on processes and related capabilities. Some researchers have made few efforts to identify and scrutinize capabilities related to business relationships. In this context, IMP scholars have introduced NC to emphasize the network perspective. Despite the considerable conceptual and empirical richness, the existence of different nomenclatures and theoretical diversity in NC literature has led to conceptual ambiguity and a lack of consensus on this crucial complex construct.

Details

Journal of Business & Industrial Marketing, vol. 37 no. 1
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 2 October 2017

Shyh-Shiuh Chen, Chao Ou-Yang and Tzu-Chuan Chou

The purpose of this paper is to conceptualize how information technology (IT) enables supply chain (SC) network capabilities, which is to capitalize on SC’s existing set…

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Abstract

Purpose

The purpose of this paper is to conceptualize how information technology (IT) enables supply chain (SC) network capabilities, which is to capitalize on SC’s existing set of resources and, at the same time, manage new combinations of SC resources to meet future market needs. The paper also develops SCM framework associated with IT-enabled SC network capabilities.

Design/methodology/approach

Through a case study of a leading Taiwanese petrochemical corporation, qualitative data were gathered on the IT-related SC management practices, in terms of network resource mobilizing and adaptive co-management arrangements to enable SC network capability. This research is based primarily on the interviews of the case company, supplemented by archived documents, published books, and in-depth observations.

Findings

Based on the evidence from the case, this study inductively develops a model that includes the operating processes with IT-enabled activities to achieve ambidextrous SC network capability, and the relevant framework functions in network resources and co-management activities include information co-governance, information interoperability, community engagement strategy, cyber-physical dexterity, and control enactment, which lead the SC alliances improvements for dynamic environmental changes.

Practical implications

Practitioners may derive strategies and tactics from the current findings to help them implement innovative information technologies and setup SC framework, during SC network capability development, to achieve SC’s sustainable competence in a dynamic market.

Originality/value

Researchers and practitioners may obtain a more complete view of IT-enabled SC network capability development. The proposed model reveals that developing IT-enabled SC network capabilities is a dynamic process whereby an organization’s major SC managerial activities are divided into specific network resource mobilizing and adaptive co-management arrangements.

Details

International Journal of Physical Distribution & Logistics Management, vol. 47 no. 9
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 10 November 2020

Minrui Han, Bing Sun and Xiao Su

This study aims to explore the influence of a region’s network location characteristics and indirect connections on its innovation capability. The aim is to assist regions…

Abstract

Purpose

This study aims to explore the influence of a region’s network location characteristics and indirect connections on its innovation capability. The aim is to assist regions in different network locations to use innovation resources to improve their innovation capabilities more efficiently.

Design/methodology/approach

This paper represents the Chinese regional innovation network using the gravity model. A theoretical framework is developed to explore the relationships between a region’s innovation capability and its network location. Hypotheses are tested using hierarchical regressions.

Findings

First, this paper finds that a region’s network centrality can promote its innovation capability. Second, a structural hole can positively adjust the relationship between a region’s centrality and innovation capability. Third, a region’s indirect connections can inhibit its innovation capability while exhibiting a U-shaped relationship in moderating centrality and innovation capability.

Originality/value

This study uses a multi-index system to construct an innovation network covering 29 regions in China. This network represents the innovation cooperation and overall situation of innovation in China. The paper is one of the first attempts at investigating the relationship between regional network locations and innovation capability. It is also the first attempt at testing the influence of indirect connections on a region’s innovation capability. The findings provide a new perspective on the factors influencing regional innovation capacity and a new way for regions to improve their innovation capability.

Details

Chinese Management Studies, vol. 15 no. 2
Type: Research Article
ISSN: 1750-614X

Keywords

Article
Publication date: 14 October 2013

Jifeng Mu

Prior research suggests that insufficient networking capability of a firm (i.e. the capability to establish, maintain, and leverage ties, contacts and connections) poses a…

1105

Abstract

Purpose

Prior research suggests that insufficient networking capability of a firm (i.e. the capability to establish, maintain, and leverage ties, contacts and connections) poses a potential barrier to its growth, the causal logic of networking capability and firm performance has not been fully articulated and a clear link between network resources and networking capability, however, remains to be demonstrated. The paper aims to discuss these issues.

Design/methodology/approach

Conceptually and theoretically, the paper emphasizes the importance of networking capability in network resources mobilization and deployment, innovation and rent-seeking and argues that the firm should build strong networking capability to creatively and artfully manage its networks to sustain its vitality.

Findings

The paper builds a theoretical model relating networking capability, network resources, open innovation, and resulting new venture success and economic rents. The paper argues that new ventures should build and leverage networking capability to manage network relationships and resources to innovate, develop and create value, and appropriate various types of economic rent.

Research limitations/implications

The framework generally promoted building networking capability as a means of accessing to a broader range of network resources and opportunities than a new venture is able to maintain internally for innovation and growth, the benefits may not be so clear-cut. A useful future research direction would be to determine empirically the relationship between networking capability and new ventures' survival and growth, the extent to which new ventures are able to derive economic rents from exploiting networking capability, and how this is related to the degrees of competitive success they attain.

Practical implications

The research framework suggests that networking capability can help new ventures to take advantage of opportunities discovered and serve unexploited markets. The study implies that networking capability can be a powerful weapon for new ventures to implement open innovation strategy to build solid growth businesses and to gain sustainable competitive advantage.

Originality/value

The paper develops a parsimonious model that links new venture survival and success with networking capability, network resources and open innovation. Also, this model shows why and how new ventures can leverage networking capability to generate and appropriate economic rent simultaneously.

Details

Journal of Research in Marketing and Entrepreneurship, vol. 15 no. 2
Type: Research Article
ISSN: 1471-5201

Keywords

Article
Publication date: 2 April 2019

Jing Zhang and Mingfei Du

The purpose of this paper is to investigate how a B2B firm can improve its value appropriation from industrial buyer–seller relationships by leveraging its network

Abstract

Purpose

The purpose of this paper is to investigate how a B2B firm can improve its value appropriation from industrial buyer–seller relationships by leveraging its network capability, as well as the curvilinear moderating role of the firm’s network embeddedness.

Design/methodology/approach

This paper empirically examines seven research hypotheses about the relationship between network capability and value appropriation and the curvilinear moderating effect of network embeddedness based on a questionnaire survey among 232 Chinese B2B firms.

Findings

It is found that network capability helps sellers appropriate value from industrial buyer–seller relationships via information acquisition, network resources and power. The mediating effect of network resources is the highest, followed by power and information acquisition. In addition, a seller’s embeddedness in a business network positively moderates the network capability and value appropriation link in an inverted U-shaped way.

Originality/value

The study makes significant contributions to the literature on value appropriation and also provides insightful implications for B2B firms to capture value from industrial buyer–seller relationships by leveraging network capability and network embeddedness.

Details

Management Decision, vol. 57 no. 11
Type: Research Article
ISSN: 0025-1747

Keywords

1 – 10 of over 72000