Search results

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.

The benefits of network relations for firms’ competitive advantage are increasingly acknowledged in the strategic management literature. Yet, the cost implications of engaging in network-specific relations, stemming from the irreversibility of sunk costs invested in creating network relations, are largely ignored. Such costs tend to be especially pronounced in high technology firms. It follows that the costs of creating network relations may mask the benefits of such relations, suggesting that networks can be a competitive risk for firms in cases where network relations unexpectedly terminate. This chapter adopts a cost-benefit approach to an empirical analysis showing that while in the long term, network relations enhance high technology firms’ performance, short-term efforts in creating network relations may hamper their performance. Furthermore, we show that greater technological intensity intensifies the negative performance implications of short term network participation and the positive performance implications of long term network participation.

This paper examines the relationship between supply chain network structures and firm financial performance and the moderating role of international relations. In this study, which is grounded in social capital theory and applies the perspective of systemic risk, the authors theorize the effects of supply chain network structures on firm performance.

The authors extracted data from two Chinese databases and constructed a supply chain network of the firms concerned based on nearly 4,300 supply chain relations between 2009 and 2018. The authors adopted the fixed effects model to investigate the relationship between supply chain network structures and firm financial performance.

The econometrics results indicate that network structures, including the degree, centrality, clustering coefficients and structural holes, are significantly related to firm financial performance. A significant and negative relationship exists between international relations and firm financial performance. The authors also find that international relations strongly weaken the relationship between supply chain network structures and firm financial performance.

This study, which collects secondary data from developing countries (e.g. China) and explores the impacts of supply chain network structures on firm stock performance, contributes to the existing literature and provides practical implications.

This case study aims to analyse dyadic empirical relations within food supply chains. The categories of market, hierarchy or power, network and social relations were used to disclose the coordinative structures on the chain level and connect these with the chain development.

The actors of three vegetable supply chains were interviewed. The coordinative relations of actors were identified and the coordinative structures on the chain level were made visible by combining the ego networks of chain actors. The “story of supply chain development” was intertwined with the analysis.

The studied food supply chains were coordinated mostly by duplex or multiplex relations, combining market, hierarchy or power, network and social relations. In addition to the strategic network, presented in literature, the study identified a coordinative structural mode of socially overlaid network. In general, the network relation was found to be used as an effective “glue” within all coordinative structures. Both coordinative structural modes exhibited substantial growth, on the condition that agricultural base and buyers enabled enlargement.

Economic sociological perspective has been used in explaining food supply chain development by making visible the coordinative relations and structures on the chain level. The chain level phenomena appear as a promising field of study.

In this study negotiated exchange under the 1-exchange rule is considered in the whole population of 142,660 exchange networks up to size 9. A review shows that 51 of these networks have been studied in the literature. Predictions for the whole population of networks are derived by parsimonious versions of power-dependence and exchange-resistance theory. All but 301 networks are classified similarly as equal, weak, or strong power networks by the power-dependence and exchange-resistance theory. Only 4% of the networks is classified as a strong power network, as opposed to the 43% of the networks studied in the literature.

The purpose of this study is to examine the impact of family firms’ types of social networks on internationalisation. By investigating the mechanisms and the process and complexity regarding the operation, function and impact of social networks, this paper aims to gain insights and understand the dynamism concerning the content, and process as well as build rich and detailed construct analysis.

This study used a qualitative case study as a research strategy to examine the impact of social networks on family firm internationalisation. A qualitative research strategy was used as the impact of networking relations and structure is challenging to be measured statistically.

The findings suggest that family firm internationalisation was gradual and characterised by an incremental learning process. This process facilitated the networking relations and structures that helped firms improve their quality, product diversification and set competitive prices.

This study’s first limitation is that it focused mainly on low technology manufacturing firms. This paper recommends examining how high technology firms maximise social networks. Secondly, this paper examined family firms; therefore, this paper recommends comparing and contrasting networking relations and family and nonfamily firms' social structure. Thirdly, being limited only to social networks, this study did not focus on the impact of ownership; this paper suggests future studies to examine family ownership and involvement in firm internationalisation.

Understanding how firms’ social network types influence family firms’ internationalisation in a transition economy is critical to ensuring family businesses’ expansion. This study explains how family firms use social networks to internationalise, extending the current understanding of family business literature in transition economies. It also provides implications for policymakers and family firms managers for improving the growth prospects of family businesses.

This paper explains why some firms manage to capture disproportionate value from their network of relationships, leading to superior performance. The paper examines how a firm's dependencies affect its value appropriation potential (VAP) in economic networks.

The paper follows the axiomatic method and the embeddedness perspective of firms to develop an index called nodal power, which captures the power that accrues to a firm in exchange-based economic networks. Thereafter, using the formal method and simulation, it shows nodal power reflects a firm's VAP in economic networks.

The study analysis and findings prove that a firm's dyadic level exchange relations and the embedded network structure determine its VAP by affecting the nodal power. A firm with lesser nodal power is likely to appropriate less value from its relations even if it equally contributes to the value creation. This finding explains how the structural and relational characteristics of a firm's network enable disproportionate value appropriation.

Nodal power furthers the scope of analyzing firms' economic relationships and changing power equations in dynamic networks. It can help firms build optimal strategic networks and manage the portfolio of relationships by predicting the impact of changing relations on firms' VAP.

The paper's original contribution is to explain, through formal analysis, why and how the structure and nature of relations of firms affect their VAP. The paper also formalizes the power-dependence principle through a dependency-based index called nodal power and uses it to show how interfirm dependencies are key to value appropriation.

This study proposes personal network of social entrepreneurs as a key antecedent factor of their resource bricolage to understand the mechanisms underlying social entrepreneurial practices before the founding of social enterprises.

An empirical study is used to collect and analyze data. The questionnaire data are drawn from in-depth semistructured interviews with Chinese social entrepreneurs. This study develops a theoretical framework that draws upon two dimensions of social capital, namely, “ownership” and “use,” to explore relationships among personal network, resource bricolage and relation strength.

With data from 227 social enterprises in China, empirical results suggest that personal network of social entrepreneurs, that is, the “owned” social capital, shall be transformed by the intermediate role of resource bricolage into relation strength, that is, the “used” social capital. The relationship between resource bricolage and relation strength is positively moderated by the marketization degree and social class of social entrepreneurs.

This study introduces resource bricolage into the front-end course of social entrepreneurship. The results show that similar personal network can lead to different behavioral outcomes in the context of social entrepreneurship. Then the integration of resources and opportunities at the beginning of the social entrepreneurial process opens new avenues for future research. However, this study only investigates the transformation from network to resources implemented by social entrepreneurs before organization establishment. It does not explore potential outcomes of such a transformation for the development of social enterprises.

Social entrepreneurs at the prefounding stage shall make use of the values of available resources, fully use potential interpersonal relations in the personal network, and transform these relations into a close, steady relationship to realize potential values of available resources. Social entrepreneurs can start from excavation and foundation laying of strong relation networks, to avoid problems in legality, social awareness and failure risks generated from blind integration of external resources.

This study finds that social entrepreneurship exists between the motivation of the social entrepreneur and the establishment of the organization after the development over time. Creating first a phased result through the resource bricolage is necessary. This result establishes a complete process chain of social entrepreneurship from motivation to behavior, next to organization establishment and subsequent development. This study is an empirical test based on the theoretical interpretation to make a positive effect on the social entrepreneurship research in the theoretical construction and testing of the deficiencies.

Purpose – Social relations play an important role in a real community. Interaction patterns reveal relations among actors (such as persons, groups, firms), which can be merged to produce valuable information such as a network structure. This paper aims to present a new approach to extract inter‐firm networks from the web for further analysis. Design/methodology/approach – In this study extraction of relations between a pair of firms is obtained by using a search engine and text processing. Because names of firms co‐appear coincidentally on the web, an advanced algorithm is proposed, which is characterised by the addition of keywords (“relation keywords”) to a query. The relation keywords are obtained from the web using a Jaccard coefficient. Findings – As an application, a network of 60 firms in Japan is extracted including IT, communication, broadcasting, and electronics firms from the web and comprehensive evaluations of this approach are shown. The alliance and lawsuit relations are easily obtainable from the web using the algorithm. By adding relation keywords to named pairs of firms as a query, It is possible to collect target pages from the top of web pages more precisely than by only using the named pairs as a query. Practical implications – This study proposes a new approach for extracting inter‐firm networks from the web. The obtained network is useful in several ways. It is possible to find a cluster of firms and characterise a firm by its cluster. Business experts often make such inferences based on firm relations and firm groups. For that reason the firm network might enhance inferential abilities on the business domain. Also we might use obtained networks to recommend business partners based on structural advantages. The authors' intuition is that extracting a social network might provide information that is only recognisable from the network point of view. For example, the centrality of each firm is identified only after generating a social network. Originality/value – This study is a first attempt to extract inter‐firm networks from the web using a search engine. The approach is also applicable to other actors, such as famous persons, organisations or other multiple relational entities.

The purpose of this paper is to theoretically clarify the relationship between public service motivation and performance by suggesting a framework in which social networks among members provide an explicit mechanism linking employees’ PSM with their performance and by proposing several empirically testable propositions.

The author suggests a theoretical framework based on a literature review and combining insights from several major strands of theory including social capital and social network theories.

Conceptually, the paper shows that, first, the extent of the social relationships among group members and their positions within a network vary depending on the level of PSM; second, individuals with high PSM are more likely to complete their tasks when they are in central positions in a network of advice relations and less likely to complete their tasks when they are in peripheral positions in central positions and a network of advice relations in a network of adversarial relations; third, group members with high PSM are more likely to complete group tasks when the group has higher density in a network of advice relations and less likely to complete tasks in a dense network of adversarial relations.

The author demonstrates the possibility of reciprocal relationships between PSM and social networks, in which PSM builds social capital that reinforces each member’s PSM by enhancing relationship quality, which will positively affect performance.

This paper provides opportunities for future empirical research by developing the discussion about a new conceptual mechanism in the relationship between PSM and performance, proposing an initial conceptual framework that clarifies the PSM and performance linkage, and suggesting several testable propositions.