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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.

Firms at the center of an organizational network may benefit from educating and building up competencies of their partners. For that reason, centers often seek to transfer knowledge from the center to partner firms. They even set up systems of inter‐organizational knowledge transfer to plan, to coordinate, and to control such transfers on a firm level instead of managing single knowledge transfer projects individually. However, little systematic attention has yet been paid to such systems on a firm level. This paper seeks to analyze the managerial mechanism to decide what knowledge to transfer to what partners.

To address this gap, data were gathered on nine leading multinational center firms. An explorative approach was adopted using case study research to look at the characteristics of network centers, network partners, knowledge, transfer channels, and programmes.

It was found that center firms offered knowledge transfer products to partners and set up portfolios of knowledge transfer programmes targeted at specific partner groups. There is further elaboration on fundamental decisions on the programmes' design, communication, access, and pricing.

The research contributes to shed light on how center firms manage knowledge transfer activities from the center to partners on the firm level and how they structure it in the form of programmes. Therefore, the paper does not focus on the management of knowledge transfer in particular partnerships or networks, but also considers interdependencies between individual knowledge transfer initiatives.

The main purpose of this paper is to analyze knowledge management in service networks. It analyzes the knowledge management process and identifies related challenges. The authors take a strategic management approach instead of a more technology‐oriented approach, since it is believed that managerial problems still remain after technological problems are solved.

The paper explores the literature on the topic of knowledge management as well as the resource (or knowledge) based view of the firm. It offers conceptual insights and provides possible solutions for knowledge management problems.

The paper discusses several possible solutions for managing knowledge processes in knowledge‐intensive service networks. Solutions for knowledge identification/generation, knowledge application, knowledge combination/transfer and supporting the evolution of tacit network knowledge include personal and technological aspects, as well as organizational and cultural elements.

In a complex environment, knowledge management and network management become crucial for business success. It is the task of network management to establish routines, and to build and regularly refresh meta‐knowledge about the competencies and abilities that exist within the network. It is suggested that each network partner should be rated according to the contribution to the network knowledge base. Based on this rating, a particular network partner is a member of a certain knowledge club, meaning that the partner has access to a particular level of network knowledge. Such an established routine provides strong incentives to add knowledge to the network's knowledge base

This paper is a first attempt to outline the problems of knowledge management in knowledge‐intensive service networks and, by so doing, to introduce strategic management reasoning to the discussion.

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.

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.

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.

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.

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.

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

The purpose of this paper is to examine which stakeholder values are created by a well-performing network-structured university-industry collaboration (UIC). These results should provide initial conclusions for the design of UICs with the aim to overcome critical barriers to effective technology transfer.

The research is designed as a comprehensive single case study and follows a qualitative approach in order to obtain a deep understanding of the various stakeholder values created by Austrian Center of Competence in Mechatronics (ACCM), a unique, well-performing UIC-network.

The results show that on the one hand ACCM provides stakeholder values that are largely common for UICs or networks (access to resources and industry problems, funding, know-how dialogue, solution of practical problems, etc.). On the other hand ACCM offers very special values which are often realized in UICs to a low degree only. The study indicates that by the special construct of ACCM, with its deep value added chain, the common problem of converting basic research results into industrial solutions can be managed.

The research shows that the ACCM construct of a network-structured UIC has many benefits for the stakeholders and offers a new way to overcome critical barriers to effective technology transfer.

Given the absence of fundamental work in this area, the study is significant both academically as well as practically in terms of effective technology transfer in network-structured UICs and their values for various stakeholders.

This paper aims to examine the dynamic process of knowledge creation of the international new venture (INV) through the interaction with network partners. The process of how INVs make use of external sources for the acquisition of international market knowledge is not well-understood.

To uncover the dynamics of the knowledge creation process, the authors applied event-driven process research by following the internationalization process of four INVs in real time. More specifically, they adopted qualitative diary research combined with periodic follow-up interviews as the main data collection method. A visual mapping strategy was used for the analysis of the process data.

The analysis shows that different pathways of knowledge acquisition through congenital learning, searching, vicarious learning and grafting interact with each other. Grafting and experiential learning alongside the partner lead to the acquisition of internationalization knowledge in particular. Knowledge sources for international market knowledge are proactively created by the entrepreneurs. The wider effectual stakeholder network constitutes an important source for international market knowledge.

The authors followed the early internationalization process of the case firm in real time over a 10-month period. This provides a limited window of observation. Future research might extend the observation period to examine further the evolutionary nature of the different learning types throughout the growth of the INV. The case firms operate in Internet-enabled businesses and are all located in the same country and city (i.e. Colombia and the city of Medellin). Future studies might focus on firms operating in different industries and geographical areas.

Congenital technological knowledge is a prerequisite for internationalization. The entrepreneur, however, does not need to rely on congenital international market knowledge. Such knowledge can be developed through network partners. Foreign business and institutional knowledge can be obtained vicariously, also from professional advisors. Internationalization knowledge, however, needs to be developed in close interaction with an international cooperation partner, where a strong relationship commitment prevails.

The authors use effectuation theory combined with process research methods to gain insights into the dynamics of knowledge creation within the INV. Thereby, they are able to shed light on the dynamics of the process that is difficult to capture through cross-sectional research designs. Research on the internationalization process of young ventures in the context of Latin America is scarce. Therefore, the paper contributes new knowledge about the development of these firms in that particular region.

The purpose of this paper is to clarify the concept of dynamic capabilities from the knowledge‐based perspective and investigate the mechanisms of dynamic capabilities on innovation performance in networked environments.

This paper designed a seven‐point Likert questionnaire measuring the dynamic capabilities, innovation performance and network embeddedness and a sample of 218 Chinese manufacturing firms were surveyed. Structural equation modeling method was used to statistically test the theoretical hypothesis.

Significant relationships were found between dynamic capabilities and innovation performance and knowledge combination capability played a mediating role in this relationship. For the links between network embeddedness and dynamic capabilities, knowledge acquisition capability was affected mainly by relational embeddedness and the diversity of network and joint problem solving contributed much to knowledge combination capability.

This paper deepened the understanding on dynamic capabilities and the mechanism between network embeddedness, knowledge‐based dynamic capabilities and innovation performance. In the future, the construct of knowledge‐based dynamic capabilities calls for more examination and verification.

Drawing on the literature of dynamic capabilities framework, knowledge‐based view and the network model, this study extends the literature of dynamic capabilities and its link with innovation performance in networked environments. Using survey data and structural equation modeling, this study offers rich evidence on the contribution of dynamic capabilities on innovation performance and the antecedents of dynamic capabilities.

Evaluates the increase in inter‐ and intra‐organizational knowledge sharing capabilities brought about by the Internet‐driven “new economy” technologies and the resulting managerial implications. Presents a framework for evaluating and deploying such technologies. Firms employing knowledge networks can also use e‐knowledge to improve organizational decision making, react more quickly to changes in the economic landscape, and create dynamic custom content and consumer intimacy. Builds on the extensive literature in knowledge management and inter‐organizational systems by identifying the opportunities of each in creating “e‐knowledge networks” to support organizational collaboration. This framework is applied to four industry case studies – supply chain management networks, adserver networks, content syndication networks, and business‐to‐business exchange networks. Analysis suggests that in the new economy, characterized by ubiquitous and often automated information sharing capabilities, the ability to create knowledge‐based networks of partners will be critical to maintaining competitive advantage.

This paper represents an empirical study of how geographic proximity influences the search advantage and the transfer problem of interfirm networks.

By using the data collected from 226 Chinese manufacturing firms, this study examines the proposed hypotheses.

The authors’ findings suggest that (1) geographic proximity is an important antecedent for promoting knowledge transfer, whereas it lowers the degree of knowledge novelty; and (2) geographic proximity also moderates the effects of interfirm networks on knowledge novelty and knowledge transfer.

This study contributes the literature of interfirm network and provides practical implications by addressing the ways in which manufacturing firms can promote knowledge transfer and acquire novel knowledge.

Immersed in a global industry consolidation process, corporate managers are witnessing, in recent years, the proliferation of inter‐organizational collaborative agreements, which aim to develop, manufacture and commercialize knowledge intensive products. The decision within a knowledge management (KM) framework to collaborate in knowledge sharing networks becomes a complicated issue, since such a decision needs to be made often under conditions of uncertainty and irreversibility. The present study deals with questions such as why, how, and when to be a member of a knowledge network and provides some empirical evidence about the formation of inter‐organizational networks in knowledge intensive industries.