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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…

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: 10 February 2022

Chia-Wen Chang and Heng-Chiang Huang

Emerging markets play an important role in the global economy. However, a common feature of most emerging markets is that firms must operate in a resource-constrained…

Abstract

Purpose

Emerging markets play an important role in the global economy. However, a common feature of most emerging markets is that firms must operate in a resource-constrained environment. In emerging markets, global mindset is a necessary resource for firms’ global competitiveness. Although global mindset has been proven to improve export performance, the theoretical mechanism behind this relationship is less clear. Based on the resource-based on the resource-based view and capability-building perspective, this study developed a model linking global mindset, relational capability, bricolage capability, innovation, and export performance.

Design/methodology/approach

A survey was conducted to collect data from exporting firms in Taiwan. Subsequently, the data (n = 172) were analyzed using a partial least squares program.

Findings

The analytical results reveal that a global mindset positively influences relational and bricolage capabilities; relational capability positively affects bricolage capability; relational capability and bricolage capability have significant and direct effects on innovation; and innovation positively affects export performance.

Originality/value

The findings confirm that a global mindset plays a crucial role in the capability-building process, which suggests that it contributes to the development of relational and bricolage capabilities. Also, relational capability is critical for exporting firms to develop bricolage capability. Finally, innovation is an important mediating mechanism between capabilities and export performance. Therefore, exporting firms can develop their international business models on the basis of their capabilities, including relational capability and bricolage capability. These capabilities improve innovation, which, in turn, enhances export performance in a resource-constrained environment.

Details

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

Keywords

Article
Publication date: 1 January 2006

Manuel Rodríguez‐Díaz and Tomás F. Espino‐Rodríguez

The purpose of this research is to show that relational capabilities is a topic of interest for the competitiveness of hotel companies. This paper aims to present a…

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Abstract

Purpose

The purpose of this research is to show that relational capabilities is a topic of interest for the competitiveness of hotel companies. This paper aims to present a methodology based on the analysis of processes in order to create and strengthen relational capabilities and proposes a model with three dimensions that jointly analyzes this phenomenon in relation to the outsourcing of activities and the collateral relationships maintained between different hotels.

Design/methodology/approach

Creates a methodology to rethink the relationships between the hotel company, its suppliers and other hotels in the same tourist destination. The creation of relational capabilities necessarily requires the hotel to study and analyze the following stages: internal analysis of resources and capabilities; relational analysis of activities; and process integration. A model is also proposed to analyze this question.

Findings

The development of relational capabilities in outsourcing is based on the level of competence of the service companies and on the strategic contribution of the activities, with four cases analyzed: high competence and low strategic contribution; low competence and high strategic contribution; low competence and low strategic value; and relational and internal capabilities. The joint analysis of the outsourcing relationships and collateral relationships among hotels adds a third dimension of process integration, with four possibilities: non‐core activities and low collateral processes integration; core activities and low collateral processes integration; non‐core activities and high collateral process integration; and core activities and high collateral processes integration.

Practical implications

A short self‐assessment questionnaire is developed that may help hotels to implement the methodology, as well as to create the basis for the empirical application by researchers in hospitality management.

Originality/value

The paper studies the possibilities of developing relational capabilities in the sector. It also determines the process to be followed in order to develop relational capabilities in the outsourcing of activities and in collateral relationships between hotels.

Details

International Journal of Contemporary Hospitality Management, vol. 18 no. 1
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 2 October 2017

Yongyi Shou, Jinan Shao and Anlan Chen

Drawing upon the theory of the resource-based view, the purpose of this paper is to examine the relationships among relational resources, innovation capability and firm…

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Abstract

Purpose

Drawing upon the theory of the resource-based view, the purpose of this paper is to examine the relationships among relational resources, innovation capability and firm performance in the third-party logistics (3PL) industry.

Design/methodology/approach

Based on data collected from 203 3PL providers in China, this study adopts the approach of structural equation modeling to examine the hypothesized relationships among relational resources, innovation capability and firm performance.

Findings

The results of this research confirm that relational resources have a positive effect on firm performance. However, the effect is not direct, but realized through the mediation of innovation capability. This study indicates that relational resources are important for 3PL providers to achieve superior performance, and innovation capability plays a mediating role between relational resources and firm performance.

Originality/value

The main contributions of this paper to the literature are twofold. First, it extends the extant research by highlighting the mediating mechanism of innovation capability in relational resources’ influence on firm performance. Second, it advances the existing perspectives on 3PL firms in the Chinese context and this sheds light on logistics research on emerging markets.

Details

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

Keywords

Article
Publication date: 15 October 2018

Nuryakin and Elia Ardyan

This study aims to examine an empirical evidence of the relationship between relational capital, network competence and market entry capabilities on marketing performance…

1003

Abstract

Purpose

This study aims to examine an empirical evidence of the relationship between relational capital, network competence and market entry capabilities on marketing performance in small- and medium-sized enterprises’ (SMEs’) furniture export orientation in Central Java, Indonesia.

Design/methodology/approach

This study uses a quantitative research approach to investigate the relationship between relational capital, network competence, market entry capabilities and marketing performance. To achieve the research objectives, data were collected from managers or owners of furniture export orientation in Central Java, Indonesia. Using structural equation modeling, and after a series of exploratory and confirmatory factor analyzed, the authors tested an integrated model of the relationship between relational capital, network competence, market entry capabilities and marketing performance.

Findings

The result of this study indicates that relational capital has a positive significant effect on marketing performance. Relational capital has an insignificant effect on market entry capabilities. Network competence has a positive effect on market entry capabilities. Market entry capabilities have a positive effect on marketing performance. Other results also show that market entry capabilities can mediate the influence of network competence and marketing performance.

Research limitations/implications

The limitation of this research indicates that respondents in this research are very varied, if it is seen from their background into furniture business development, whereas many respondents do not have enough understanding of the questionnaire distributed. This research is only developed at the SMEs’ furniture area, so it cannot be generalized at the other organizational area. The influencing of relational capital result in market entry capability has not suitable with theory built. It is because inaccurate dimension market entry capability has been applied in this research. For future research, it is suggested to look for alternative dimension of market entry capability.

Practical implications

Based on the analysis results and discussion, it can be formulated that managerial implication explains the following steps: first, a company should focus on long-period relationship development. Focus on long-period relationship development will increase customer loyalty and company performance. Moreover, the customer has long-term relationship with organization, although instability condition because of the belief in long-period relationship and strong commitment to each other. The evidence from this study suggests that’s the organization needs to develop the long-term relationship with customer. Second, networking competency is important in market entry capability. Relationship can change anytime; therefore, the company has to have a strong competency of network developing. This competency helps company to enhance strong relationship. The strong network relationship helps company face easier ways in market entry capability.

Originality/value

The results of this research indicate that the role played by relational capital to increase market entry capability is not as good as the role played by network capability on market entry capability. In the international market context, the role of resource-based view is better than that of transaction cost economy in influencing market entry capability. Other results also show that market entry capabilities can mediate the influence of network competence and marketing performance.

Details

Journal of Research in Marketing and Entrepreneurship, vol. 20 no. 2
Type: Research Article
ISSN: 1471-5201

Keywords

Open Access
Article
Publication date: 19 September 2019

Yakubu Salisu and Lily Julienti Abu Bakar

The purpose of this paper is to empirically evaluate the mediating role of learning capability on the relationship between technological capability, relational capability

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Abstract

Purpose

The purpose of this paper is to empirically evaluate the mediating role of learning capability on the relationship between technological capability, relational capability and small and medium enterprises (SMEs) performance in developing economy of Africa.

Design/methodology/approach

A quantitative survey design was employed to collect the data from owner/manager of manufacturing SMEs in Nigeria. Partial least square structural equation model was used in the evaluation of both the measurement and structural models to determine the reliability and validity of the measurement and test the hypotheses, respectively.

Findings

The statistical result indicates a positive relationship between technological capability, learning capability and SMEs performance. Equally, relational capability significantly and positively relates to SMEs learning capability. However, relational capability negatively relates to SMEs performance, while technological capability also negatively relates to learning capability. Furthermore, learning capability mediates the negative relationship of relational capability and SMEs performance to significant positive relationship, while it does not mediate the relationship of technological capability and performance.

Research limitations/implications

The analysis of this study is restricted to only resource-based view and dynamic capability theory. Data of the study were collected once a time on a self-reported technique. The study contributed significantly to the body literature on technological and relational capabilities and performance. It also demonstrated the need for SMEs manager to recognize and appreciate the roles of these strategic capabilities in achieving sustainable competitive position.

Practical implications

Through relational capability SMEs develops efficient collaborative relationship to acquire new techniques, knowledge. This is specifically, essential for SMEs firms from less developing and emerging economies as they are lagging behind at the global competitive platform, and that the possession of specific advantage locally may not be adequately enough to help penetrate the global markets. Similarly, technological capability enable firms to identify acquire and apply new external knowledge to develop operational competencies which may lead to the attainment of superior performance.

Social implications

Government policies and programs designed to support technological development and innovation must be adjusted to consider the peculiar nature of SMEs firms in terms of technology and innovativeness that enhances competitive position and performance.

Originality/value

This study empirically examined the relationship of technological and relational capabilities and the SMEs learning capability and performance.

Details

Revista de Gestão, vol. 27 no. 1
Type: Research Article
ISSN: 2177-8736

Keywords

Article
Publication date: 1 July 2006

Manuel Rodríguez‐Díaz and Tomás F. Espino‐Rodríguez

The purpose of this paper is to analyze the competitive advantages of the networks of firms forming the supply chain and distribution channels through process integration…

4616

Abstract

Purpose

The purpose of this paper is to analyze the competitive advantages of the networks of firms forming the supply chain and distribution channels through process integration, outsourcing, and creation of relational capabilities.

Design/methodology/approach

A four‐stage methodology is created to redesign the supply chain depending on the creation of relational capabilities: internal analysis to determine the focal company's competence; relational analysis in the outsourcing of activities; process integration; and development of relational capabilities.

Findings

The development of relational capabilities is based on two dimensions: company level of competence in performing activities, and strategic contribution of the activities to competitive advantage. Four cases are analyzed from those two dimensions: high competence/low strategic contribution; low competence/high strategic contribution; low competence/low strategic value; and relational and internal capabilities, where relational capabilities strengthen internal capabilities. Finally, it is established what actions are necessary for the activities analyzed from those dimensions to be a source of competitive advantage by means of relational capabilities created through process integration and outsourcing to highly competent firms.

Practical implications

The development of a short self‐evaluation questionnaire that helps firms implement the methodology and creates the basis for its empirical application by researchers.

Originality/value

The paper studies relational capabilities, an aspect omitted from the internal perspective of the resource and capability theory. It also determines four ways in which relational capabilities influence the strengthening of internal capabilities. The theoretical approach is developed in the redesign of the supply chain.

Details

Business Process Management Journal, vol. 12 no. 4
Type: Research Article
ISSN: 1463-7154

Keywords

Article
Publication date: 7 October 2021

Valentina Della Corte, Massimo Aria, Giovanna Del Gaudio, Jay Brian Barney, Cihan Cobanoglu and Fabiana Sepe

This study aims to focus on inter-firm collaboration, exploring the main capabilities that can make a business more or less open to collaboration; it also considers the…

Abstract

Purpose

This study aims to focus on inter-firm collaboration, exploring the main capabilities that can make a business more or less open to collaboration; it also considers the role of both firm-specific and relationship-specific capabilities. The paper proposes a model that can be used to study how the combination of the two categories of capabilities determines a firm’s approach to collaboration.

Design/methodology/approach

Through a survey of high-end hotels in tourist destinations in Italy and the USA, this paper tests variable connected with firm-specific and relationship-specific aspects, using confirmatory factor analysis.

Findings

Firms with greater capabilities are less open to cooperation; weaker firms with fewer resources appear to be more inclined to cooperate, probably to gain access to resources and competencies they do not possess.

Research limitations/implications

From a scientific perspective, this paper suggests an analysis based on both individual and relational capabilities when deciding whether to collaborate, while most studies based on a relational view just consider relational capabilities. The study could be enlarged to other countries and contexts.

Practical implications

From a practical perspective, it indicates the importance of accounting for different and sometimes diverging aspects when deciding to cooperate.

Social implications

In terms of social implications, it shows that, apart from the relational capabilities they have, potential partners can decide not to collaborate.

Originality/value

The paper suggests a method of analyzing both individual and relational capabilities when deciding whether to engage in a collaboration. It shows that firms’ behavior does not necessarily depend on the firm’s relational capabilities.

Details

International Journal of Contemporary Hospitality Management, vol. 33 no. 12
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 21 March 2008

Tomás F. Espino‐Rodríguez and Manuel Rodríguez‐Díaz

The purpose of this paper is to analyse the impact of relational capability compared to that of internal capability on outsourcing, and the influence of relational

2836

Abstract

Purpose

The purpose of this paper is to analyse the impact of relational capability compared to that of internal capability on outsourcing, and the influence of relational capability as a moderating variable between outsourcing and internal capabilities. The paper aims to integrate the internal and relational perspectives in a single model of strategic evaluation.

Design/methodology/approach

This work analyses the outsourcing process in a representative sample of firms operating in a region of Spain. To accomplish the research objectives, a personal survey was conducted using a questionnaire to evaluate 13 activities of the order distribution process in the supply chain.

Findings

The results indicate that internal capabilities have a negative effect on outsourcing while relational capabilities have a positive effect. They also show that, the greater the relational capabilities of an operation are, the less significant the relationship between internal capabilities and outsourcing will be.

Practical implications

Firstly, by using the proposed model, companies can evaluate their internal and relational strategies and compare them to the sector averages at a given moment. Secondly, they can detect opportunities to improve competitiveness and develop relational capabilities for some of the activities that they wish to outsource. This work helps identify which process activities to outsource and which type of relationship should be maintained to develop a set of capabilities.

Originality/value

This paper provides a comprehensive application of a theoretical framework in a new model of strategic evaluation of outsourcing. Another innovation of this work is the introduction of relational capabilities as a variable moderating the relationship between internal capabilities and outsourcing.

Details

Industrial Management & Data Systems, vol. 108 no. 3
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 2 October 2017

Rapeeporn Rungsithong, Klaus E. Meyer and Anthony S. Roath

This paper uses the relational capabilities perspective to provide new insights into the mediating role of relational capabilities and their performance implications…

Abstract

Purpose

This paper uses the relational capabilities perspective to provide new insights into the mediating role of relational capabilities and their performance implications. Specially, this paper aims to explain how characteristics of a partnership influence relational capabilities that in turn enhance firm performance.

Design/methodology/approach

Using data from an original survey of 156 partnership projects between buyers and suppliers in the Thai manufacturing sector, the authors use a structural model to test their hypotheses.

Findings

The empirical analysis shows that the impact of relational and economic attributes of a partnership on firm performance is mediated by knowledge sharing routines and complementary capability. However, the impact varies between operational and strategic performance, as relational capabilities are strongly associated with operational performance but only indirectly associated with strategic performance.

Practical implications

The need to coordinate and mobilize complementary resources not only increases the interdependence between buyers and suppliers but also contributes to firm performance. Specifically, operations can be enhanced by knowledge sharing routines and complementary capability. At a strategic level, operational effectiveness enables firms to benefit from inter-organizational relationships.

Originality/value

The authors contribute to industrial marketing knowledge by shedding light on mediation of relational capabilities between inter-organizational attributes and firm performance. The findings demonstrate the value of the relationship between a firm’s supply chain and its relational capabilities which in turn drive project performance.

Details

Journal of Business & Industrial Marketing, vol. 32 no. 8
Type: Research Article
ISSN: 0885-8624

Keywords

1 – 10 of over 20000