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We introduce a multi-level model of the dependence of interfirm network topologies on the distribution and commonality of information in a network and the information strategies pursued by its member firms. Network topology, information properties of the network, and firm-level action within the network form dynamic, recursive, cross-level relationships – information properties in the network determine firm-level action, which in turn impacts the network topology and information properties. We derive predictions about the kinds of information strategies that firms are likely to adopt and succeed with in different information regimes, and about the kinds and short- and long-run dynamics of network topologies expected under different information regimes. Our model sheds new light on network topologies as a dependent variable that can be explained by network-level information regimes and firm-level information strategies.

This manuscript aims to integrate the relationship and knowledge-based theoretical perspectives of open innovation to provide a framework that identifies and classifies eight critical dimensions that influence the effectiveness of interfirm open innovation.

The literature on interfirm open innovation is reviewed. Internal firm factors and external interfirm factors of open innovation are explored.

The manuscript identifies four internal firm factors of absorptive capacity, control of knowledge input, relational capability and coordination capability. Further, the synthesis identifies four external firm factors of distribution of knowledge input, appropriation of knowledge output, network position and network diversity.

The organizing framework facilitates the development of eight research propositions to guide future empirical investigation. Moreover, the findings aid managers in understanding what dimensions they should consider to improve the effectiveness of their interfirm open innovation activities.

By considering both the relationship and knowledge-based perspectives, the manuscript integrates various perspectives of open innovation to provide direction for practicing managers and for future research on interfirm open innovation.

Balancing interfirm relationships is important for firms’ long-term superior performance. However, prior studies mainly focus on interfirm competition or interfirm cooperation separately, ignoring the balance of interfirm relationships. To bridge this gap in knowledge, this study aims to develop a framework to evaluate the balance of interfirm competition and interfirm cooperation and propose strategies to optimize a firm’s interfirm relationships.

After an in-depth literature review, a framework was developed for evaluating and optimizing the interfirm relationships. Taking the high-speed railway industry as an example, the proposed framework was implemented.

The results of the case confirm that the balancing of interfirm relationships can lead to more superior firm performance. Also, rather than mutual suppression, the interfirm competition and interfirm cooperation present a roughly positive relationship.

This study would contribute to the existing knowledge body by developing a framework for balancing interfirm relationships. Also, this study can aid practitioners in evaluating and optimizing their interfirm relationship structures.

The purpose of this paper is to develop the concept of a high performance alliance macro-culture as a multilevel construct reflective of resilient collaborative systems of exchange within strategic alliances and explores the distinct capabilities of this multilevel approach in predicting alliance outcomes.

The hypotheses developed in this study are tested using primary data collected from 650 members of 15 non-profit organizations in two multi-organizational collaborative networks. Considering the multilevel nature of the study the structural hypotheses are tested using a multilevel confirmatory factor analysis and the predictive hypotheses are tested using multilevel structural equation modeling.

All but one structural hypothesis are supported and all predictive hypotheses are supported suggesting that a multilevel macro-cultural conceptualization is effective in exploring the relationship between collaborative exchange systems and their outcomes.

Limitations stem from the generalizability of the data collected as the alliances formed by non-profit firms may not be wholly reflective of the alliance structures and goals of other firm types.

This study primarily contributes to multilevel study of strategic alliances and the study of collaborative norms and structures of allied groupings. The results of this study lend support to the importance of taking a network governance perspective and illustrate the limitations of traditional single-level approaches when studying interfirm collaborative networks and structural resilience therein.

This study aims to examine theoretical insights from market orientation and resource-based view for enhancing grocery retailers ' distribution capabilities. The distribution capability of a firm can influence both effective and efficient handling of external stocks and internal distribution of products in response to changing market demands. Although firms rely on distribution capability to manage their supply chain to ensure the right products are in the right place at the right time, few studies examine the underlying factors that support distribution capabilities for a firm’s upstream and downstream supply chain activities especially in uncertain environments.

In the context of retail firms, a review of the literature shows that distribution capability can be conceptualized as an interfirm phenomenon based on theoretical insights from the resource-based view, market orientation and network structure.

Data from a sample of 247 small- and medium-sized grocery retailers operating in three major Chinese cities highlight a salient and positive relationship between a retailer’s distribution capabilities and its performance in uncertain environments.

However, a retailer’s strong interfirm relations in a distribution network are negatively associated with retailer performance. Similarly, the influence of interfirm market orientation on retailer performance cannot be established in the supply chain. The study suggests that SME grocery retailers would benefit from understanding their numerous supply chain relationships and managing them (rather than relying on centrally ingrained relationships), and developing behavioral norms of interfirm market orientation among different supply chain partners.

The literature on interfirm networks devotes scant attention to the ways collaborating firms combine and integrate the knowledge they share and to the subsequent learning outcomes. This study aims to investigate how motorsport companies use network ties to share and recombine knowledge and the learning that occurs both at the organizational and dyadic network levels.

The paper adopts a qualitative and inductive approach with the aim of developing theory from an in‐depth examination of the dyadic ties between motorsport companies and the way they share and recombine knowledge.

The research shows that motorsport companies having substantial competences at managing knowledge flows do so by getting advantage of bridging ties. While bridging ties allow motorsport companies to reach distant and diverse sources of knowledge, their strengthening and the formation of relational capital facilitate the mediation and overlapping of that knowledge.

The analysis rests on a qualitative account in a single industry and does not take into account different types of inter‐firm networks (e.g. alliances; constellations; consortia etc.) and governance structures. Cross‐industry analyses may provide a more fine‐grained picture of the practices used to recombine knowledge and the ideal composition of inter‐firm ties.

This study provides some interesting implications for scholars and managers concerned with the management of innovation activities at the interfirm level. From a managerial point of view, the recognition of the different roles played by network spanning connections is particularly salient and raises issues concerning the effective design and management of interfirm ties.

Although much of the literature emphasizes the role of bridging ties in connecting to diverse pools of knowledge, this paper goes one step further and investigates in more depth how firms gather and combine distant and heterogeneous sources of knowledge through the use of strengthened bridging ties and a micro‐context conducive to high quality relationships.

Analysis of organizational decline has become central to the study of economy and society. Further advances in this area may fail however, because two major literatures on the topic remain disintegrated and because both lack a sophisticated account of how social structure and interdependencies among organizations affect decline. This paper develops a perspective which tries to overcome these problems. The perspective explains decline through an understanding of how social ties and resource dependencies among firms affect market structure and the resulting behavior of firms within it. Evidence is furnished that supports the assumptions of the perspective and provides a basis for specifying propositions about the effect of network structure on organizational survival. I conclude by discussing the perspective’s implications for organizational theory and economic sociology.

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 goal is to examine the relationship between business process improvement initiatives (BPII), information systems (ISs) integration, and customer focus.

The data for the study were collected at the divisional levels from a list of “Fortune 500” firms. A total of 1,100 questionnaires were mailed to divisional managers and 115 responses were used for the data analysis.

The results of this study support the hypotheses that BPII directly affects customer responsiveness and product/service innovation. In addition, data integration and communication networks flexibility are found to significantly affect customer responsiveness and product/service innovation. Communication networks connectivity did not have any significant effect on customer responsiveness and product/service innovation, respectively. Data integration, intrafirm networks connectivity and networks flexibility are found to significantly mediate the relationship between BPII and customer responsiveness and BPII and product/service development, respectively. Interfirm networks connectivity was not found to significantly mediate the relationship between BPII and customer responsiveness and BPII and product/service development, respectively.

The sample consists of divisions of Fortune 500 firms. Second, the study is cross‐sectional; therefore, it lacks the predictive power to find the long‐term effects of BPII and IS integration on customer focus. A longitudinal study can be a future research endeavor to validate the results of the study.

To business managers, the study clarifies the role of IS integration in customer focus.

This paper aims to offer a novel set of insights to understand the role of network ties in pursuit of radical innovation. In this sense, the purpose of the study is to analyze how the heterogeneity in the content of network ties affects radical innovation performance.

Based on a comprehensive review of existing literature, this paper conceptualizes how different types of network ties affect radical innovation performance by deriving five research propositions.

Both buyer-supplier ties and peer collaboration ties are positively related to radical innovation performance, whilst the peer collaboration ties may be further affected by partner similarity. Compared to other two types of network ties, equity ties act as more of moderating roles on spurring radical innovation. Crowding out between network ties prevents firms from knowledge searching within an extensive network scope, reducing the opportunities of mixing and matching different kinds of knowledge needed for radical innovation.

The study suggests a natural way of launching marketing strategy by selectively integrating different sources of knowledge (market, supplier or technology) needed for commercializing radical technologies, highlighting the importance of partner selection for radical innovation among different types of firms surrounding the current market. For managers, it is necessary to identify and select network ties helpful for long-term business and strategic interests.

This paper makes two main contributions. First, it addresses the question of how networks influence radical innovation by identifying three types of network ties and their effects – individual and in combination – on extension of the depth and breadth of knowledge and development of disruptive ideas. Second, it develops the existing literature by demonstrating the crowding-out effect of network ties.