Toward a deeper understanding of the roles of personal and business networks and market knowledge in SMEs’ international performance

2016 ◽  
Vol 23 (3) ◽  
pp. 812-830 ◽  
Author(s):  
Byoungho Jin ◽  
Sojin Jung
Keyword(s):  
Process Model ◽  
Critical Factor ◽  
Foreign Market ◽  
Personal Networks ◽  
Business Networks ◽  
Business Network ◽  
Market Knowledge ◽  
Content Type ◽  
International Performance

Purpose – The purpose of this paper is to, built upon Johanson and Vahlne’s (2009) Business Network Internationalization Process Model, explore the role of personal networks and business networks and their impact on foreign market knowledge and performance among small and medium-sized enterprises (SMEs) after international market entry. Design/methodology/approach – With a total mailing list of 2,250 US firms, data were collected via a mail survey in accordance with the methods of Dillman et al. (2008). Findings – An empirical analysis of 105 SME cases revealed that business networks increased foreign market knowledge, which in turn also heightened the international performance of the SMEs. This confirmed the mediating role of market knowledge between business networks and international performance. Personal networks, however, provided little support in helping SMEs achieve foreign market knowledge and international performance. Originality/value – This study contributes unique empirical evidence demonstrating that business network internationalization models can be applicable to the context of SMEs; that is, having access to such a network (i.e. a business network) is found to be a critical factor of international performance.

SME network relationships and competitive strategies in the agri-food sector

2020 ◽  
Vol 32 (3) ◽  
pp. 405-424 ◽  
Author(s):  
Luca Camanzi ◽  
Carlo Giua
Keyword(s):  
Conceptual Model ◽  
Network Structure ◽  
Competitive Strategy ◽  
Integrated Approach ◽  
Business Networks ◽  
Business Network ◽  
Content Type ◽  
Stakeholder Relationships ◽  
Study Results

Purpose The purpose of this paper is to identify the main factors influencing agri-food small and medium enterprises (SMEs) participation in business networks and to evaluate the impacts of these factors on network structure and the ensuing competitive strategy. Design/methodology/approach The study is articulated in four main steps. First, a critical literature review is conducted concerning the main approaches to firm competitive advantage and the role of stakeholder relationships. Then, three research questions are formulated and discussed in the light of two case studies describing the implementation of an innovative contractual solution in Italy (i.e. business network contracts). Finally, based on these findings, a set of more general “propositions” are stated and included in a provisional conceptual model that schematically depicts an integrated vision of the antecedents and mechanisms influencing SMEs business network structure and competitive strategy. Findings The study results pointed out the opportunity to adopt an integrated approach, combining resource-based view and stakeholder causal scope approaches. The provisional conceptual model proposed illustrates the role of both external and internal resources and relational constructs to shaping network structure and competitive strategy. Originality/value The study’s contribution is twofold. First, the empirical study shed light on opportunities and limits of two business networks with different backgrounds, approaches and outcomes towards value creation. Second, the conceptual framework proposed advances our understanding and knowledge of the factors and mechanisms influencing SMEs business network structure and competitive strategy.

scholarly journals Conceptualizing Interactive Network Branding in business markets: developing roles and positions of firms in business networks

2019 ◽  
Vol 34 (8) ◽  
pp. 1681-1691 ◽  
Author(s):  
Nikolina Koporcic ◽  
Jan-Ake Tornroos
Keyword(s):  
Current Literature ◽  
Corporate Branding ◽  
Corporate Identity ◽  
Business Networks ◽  
Business Network ◽  
Business Markets ◽  
Content Type ◽  
Network Research ◽  
Interactive Network

Purpose This paper aims to present the concept of Interactive Network Branding (INB) in business markets. The INB conceptualization offers an understanding of corporate branding processes as an inherent part of business networking. More specifically, the paper focuses on the importance of INB for firms that are developing their roles and positions in business networks. Design/methodology/approach The conceptual paper reviews the extant literature on corporate branding in conjunction with business network research. This perspective adds to the current knowledge of business marketing by proposing a theoretical framework of INB. Findings The conceptualization of INB offers a specific network lens on corporate branding by presenting three INB dimensions. The first dimension deals with corporate identity; the second dimension deals with corporate reputation; the third, mutual INB dimension, presents an “interactive space” where branding and networking collide. These three dimensions are enacted by individuals acting on behalf of their companies, as key implementers of INB processes. Through the INB, strategic roles and positions of firms embedded in their business networks are formed. Research limitations/implications The paper contributes to current literature on business network research that has left a corporate brand perspective almost unnoticed. The INB concept also offers an extension to current literature on corporate branding, which has to date neglected business relationships and networking issues. Being strongly conceptual, the paper notes that empirical research is needed for observing the role of INB in real-life business encounters. Practical implications This study provides novel ideas and implications for firm representatives responsible for branding and relationship development in business networks. It denotes the critical role of individuals and their interactions with other individuals, which influences the development of specific network roles and positions for connected business entities. Originality/value The used multidisciplinary approach provides a conceptual platform to study branding processes in business networks. By offering a network perspective to corporate branding, new and relevant implications for both theory and practice are fore fronted.

The temporal effects of social and business networks on international performance of South Korean SMEs

2019 ◽  
Vol 31 (4) ◽  
pp. 1042-1057 ◽  
Author(s):  
So Won Jeong ◽  
Byoungho Ellie Jin ◽  
Sojin Jung
Keyword(s):  
Social Networks ◽  
Process Model ◽  
International Experience ◽  
Business Networks ◽  
Marketing Capabilities ◽  
Internationalization Process ◽  
Sampling Frame ◽  
Content Type ◽  
International Performance ◽  
And Performance

Purpose Drawing on the resource-based view, the purpose of this paper is to investigate the link between resource capabilities and performance by incorporating two network dimensions (i.e. social and business networks), a moderator (i.e. international experience) and a mediator (i.e. marketing capabilities). Design/methodology/approach SME data were collected via surveys. A sampling frame of 3,000 exporting manufactures was developed based on a database sourced from the Korea Chamber of Commerce and Industry. The authors first contacted the managers of each firm in the sampling frame through e-mail or phone to receive permission, and then sent a paper questionnaire. The authors analyzed 392 valid cases using a path analysis. Findings The findings largely confirmed the hypotheses in the proposed framework based on the RBV. While social networks only enhanced marketing capabilities and did not directly lead to international performance, business networks enhanced both. Also, unlike social networks, the influence of SME business networks on international performance was weakened as international experience increased. This study found that marketing capabilities mediated the path from business networks to international performance. Research limitations/implications The study explained the distinctive roles played by social and business networks in international performance, extending our knowledge of the RBV by showing how firm resources can turn into sustainable competitive advantages. More importantly, the integration of time into the discussion on networks and international performance extended the business network internationalization process model. Practical implications The authors suggest that Korean SMEs focus on developing their own marketing capabilities by capitalizing on their social and business networks, which could directly enhance international performance. Governments can also offer assistance to SMEs for developing their own marketing capabilities during the initial stages of internationalization, since the benefit of business networks diminishes as international experience increases. Originality/value By testing the proposed link between resource capabilities and performance, this study suggested how SME networks can contribute to international performance, extending our understanding of RBV. This study further confirmed the dynamic impact of business networks on international performance, such that it changes over the course of the internationalization process.

scholarly journals Managing business networks for value creation in facilities and their external environments

Facilities ◽  
2017 ◽  
Vol 35 (1/2) ◽  
pp. 99-115 ◽  
Author(s):  
Karlos Artto ◽  
Tuomas Ahola ◽  
Riikka Kyrö ◽  
Antti Peltokorpi
Keyword(s):  
Network Formation ◽  
Business Environment ◽  
Business Networks ◽  
Business Network ◽  
Content Type ◽  
External Actors ◽  
Tenant Mix ◽  
Practical Implications

Purpose The purpose of this paper is to increase understanding of the logic of business network formation among the co-located and external actors of a facility. Design/methodology/approach The research adopts a theory-building approach through developing propositions inductively from the empirical case study on four purposefully sampled modern service station facilities. The focus is on analyzing how a facility and its inherent co-located actors represent an entity that forms a business network with external actors in the facility’s environment. Findings The findings propose that when co-located with a large number of actors, the facility and its actors represent an entity that is connected to a wide business network of multiple external actors. On the other hand, when co-located with a small number of actors, the facility becomes a part of the overall supply in the surrounding business environment with a differentiated offering for competitive advantage. Practical implications The research suggests that an appropriate co-locating strategy, for example, when planning the tenant mix of the facility, can contribute to creating a vivid business network in the external environment, which raises the facility to a role of a central entity in such a network. Originality/value The findings explaining how co-location affects the businesses within the facility and within a wider networked environment are novel to the scholarly knowledge on co-location. The research bridges the theories of co-location and business networks that have been treated as separate discourses in previous research.

Conceptualizing mechanisms influencing strategizing in business networks

2017 ◽  
Vol 32 (6) ◽  
pp. 777-785 ◽  
Author(s):  
Anna-Greta Nyström ◽  
Joachim Ramstrom ◽  
Jan-Åke Törnroos
Keyword(s):  
Empirical Research ◽  
Conceptual Knowledge ◽  
Design Methodology ◽  
Business Networks ◽  
Business Network ◽  
Content Type ◽  
Conceptual Paper ◽  
Strategic Position ◽  
Change Forces

Purpose The purpose of this paper is to study how insights from socio-cognitivism (sensemaking and interaction) in conjunction with institutional theory enhance our knowledge of strategizing in business networks through role and position. Design/methodology/approach This paper is conceptual and reviews extant literature from the fields under scrutiny, presenting and analyzing new combined approaches. Findings Current writings concerning strategizing in networks need to be supplemented in the area of strategic business network research. Interaction, sensemaking and institutionalization, as well as the network in which a firm is embedded, are important for strategically developing network positions and the roles of actors. Research limitations/implications This conceptual paper suggests mechanisms affecting role and position in networks and calls for empirical research to deepen the understanding of the change forces at play in embedded relational situations for firms. Originality value This study adds to current conceptual knowledge of strategizing in business networks. It presents a comprehensive perspective in viewing how key forces impact on the strategic position and role of corporate actors (both managers and firms) in networks.

Relative absorptive capacity as a booster of innovation in an automotive cluster

2020 ◽  
Vol 30 (2) ◽  
pp. 175-193
Author(s):  
Laura Zapata-Cantu ◽  
Josep Rialp ◽  
Ana Olga Rodríguez
Keyword(s):  
Absorptive Capacity ◽  
Structural Equation ◽  
Innovation Process ◽  
Equation Modeling ◽  
Business Networks ◽  
Supply Network ◽  
Business Network ◽  
Content Type ◽  
Source Of Information

Purpose This study aims to address the relevance of the mediating role of the relative absorptive capacity (ACAP-R) in the relation between absorptive capacity and innovation, contributing to a better understanding of innovation in a business network. Participants’ firms in this study are part of the supply network of an automotive cluster. Design/methodology/approach The study is developed in 225 companies that are part of the supply network of an automotive cluster in Mexico. A survey was applied to key firm informants who had been involved on processes of innovation, quality or continuous improvement. During data analysis, structural equation modeling was implemented with the support of SmartPLS 3.0 to understand the mediation role of relative absorptive capacity as a novel insight of innovation in a Mexican cluster. Findings The results demonstrate the partial mediator role of the ACAP-R among the absorptive capacities and the level of innovation of the companies that make up the network studied. The findings represent an approach to the understanding of one of the key dynamic capacities in the innovation process and, thus, to the competitiveness of organizations, which has scarcely been studied from the perspective of business networks. Research limitations/implications The limitations of the research focus on the fact that the source of information in the surveys comes, in most cases, from the opinion of a key informant per unit surveyed, which is why there is a certain margin of subjectivity that could be reduced if there is more than one source of information in the same organization. It is also considered important that the information offered by the suppliers could be complemented by the opinion of clients. This would provide a more complete view of the circularity of information involved in inter-organizational exchanges. Originality/value The findings provide useful insights not only in terms of understanding the link between absorptive capacity and innovation, but also how to improve levels of innovation through knowledge exchanges that occur during the participation of suppliers and customers in a business network. Firms with high levels of ACAP are more likely to recognize the opportunity to benefit from external knowledge and to participate intensely in collaborative efforts. That is, technological similarity or similar knowledge base between source or recipient firms impacts their innovation.

The role of owners in industrial networks – the case of a steel producer

IMP Journal ◽  
2016 ◽  
Vol 10 (2) ◽  
pp. 276-295 ◽  
Author(s):  
Bjorn Axelsson ◽  
Håkan Håkansson
Keyword(s):  
Design Methodology ◽  
Policy Implications ◽  
Business Networks ◽  
Business Unit ◽  
Business Network ◽  
Steel Company ◽  
Content Type ◽  
Industrial Networks ◽  
Time Period

Purpose – In this paper, the authors will argue that owners as one type among many other types of actors is essential to bring into the picture when analyzing developments in industrial and other kinds of business networks. The direct relationship between owners and the business unit, the firm, is one type of relationship. But owners, as well as the firm as such, also possess several indirect relationships that could be highly relevant in many business network situations. The purpose of this paper is to investigate both direct and indirect relationships when analyzing the role of owners. Design/methodology/approach – The empirical base is coming from an earlier Swedish investigation of the development of a steel company in the course of 75 years. In this study the authors mapped ownership and the role owners had in financial and other terms. The authors also made a detailed investigation of the development of the company in terms of important customers and suppliers, i.e. its business network. In total it means that the empirical data give us a quite multidimensional picture of the role and importance of ownership over a substantial time period. Findings – The owners were for this company not at all important as financers. The monetary flow went, during the whole period, from the company to the owners. The owners, however, played a far more important role in an indirect way, affecting the way the company designed single business relationships as well as the combined network of those relationships. The owners were more important as network designers than as financial contributors. The analysis focusses on two topics: the ways in which owners contributed to the development of the firm during several phases of its development and similarities and differences between the various types of ownership (an entrepreneur – owner, a customer firm, a bank, a family industrial sphere). Originality/value – The results indicate that the existence and importance of indirect relationships is of vital importance when analyzing the importance of owners in business networks. These indirect relationships are usually not analyzed in contemporary research about ownership. This an interesting and important topic and the authors hope that this study will be followed by many more. The addressed topic is especially relevant for the policy implications.

The impact of business networks on foreign subsidiaries development

IMP Journal ◽  
2018 ◽  
Vol 12 (3) ◽  
pp. 427-443
Author(s):  
Enrico Baraldi ◽  
Francesco Ciabuschi ◽  
Olof Lindahl ◽  
Andrea Perna ◽  
Gian Luca Gregori
Keyword(s):  
Single Case ◽  
Foreign Market ◽  
Business Networks ◽  
International Expansion ◽  
Content Type ◽  
Fine Grained ◽  
Automatic Control Systems ◽  
Industrial Networks ◽  
The Impact

Purpose The purpose of this paper is to explore two specific areas pertaining to industrial networks and international business (IB). First, the authors look at how business relationships influence the internationalization in time, from the establishment of the first subsidiary in a foreign market to the following ones, and in space, that is, across different markets. Second, the authors investigate how an increasing external network dependence of subsidiaries in their internationalization may cause a detachment of a subsidiary from the mother company as its knowledge becomes insufficient to guide a subsidiary’s internationalization. Design/methodology/approach This paper utilizes an exploratory, longitudinal, single-case study of Loccioni – a manufacturer of measuring and automatic control systems for industrial customers – to illustrate the specific dynamics of the influences of industrial networks on the internationalization of subsidiaries. Findings The case study helps to elucidate the roles, entailing also free will and own initiative, of small suppliers’ subsidiaries which operate inside several global factories, and how “surfing” on many different global factories, by means of several local subsidiaries, actually supports these suppliers’ own international developments. This notion adds to our understanding of the global factory phenomenon a supplier focus that stresses how the role of suppliers is not merely that of being passive recipients of activities and directions from a focal orchestrating firm, but can also be that of initiative-takers themselves. Originality/value The paper contributes to the IMP tradition by providing a multi-layered and geographically more fine-grained view of the network embedding companies that operate on internationalized markets. This paper thereby sheds light on a less investigated area of research within the IMP tradition: the link between internationalization in different countries and the interconnectedness between the industrial networks spanning these countries. At the same time, this paper contributes to IB theories by showing how a late-internationalizing SME can enter highly international markets by “plugging into” several established “Global Factories” as a way to exploit further opportunities for international expansion.

Institutional effect on born global firms in China: the role of Sun Tzu’s The Art of War strategies

2016 ◽  
Vol 10 (1) ◽  
pp. 1-19 ◽  
Author(s):  
Man Zhang ◽  
Qian Gao ◽  
Jane V. Wheeler ◽  
Jungsook Kwon
Keyword(s):  
Emerging Markets ◽  
Institutional Environment ◽  
Critical Role ◽  
Born Global ◽  
Internationalization Process ◽  
Content Type ◽  
International Performance ◽  
The Relationship ◽  
Born Global Firms

Purpose – This paper aims to investigate the role of Sun Tzu’s significant strategies on the relationship between the institutional environment and international performance of Chinese born global firms, a type of small- and medium-sized enterprise (SME) characterized by the company’s limited resources and its early efforts to internationalize. Design/methodology/approach – The methodology is based on a multi-case analysis of interviews conducted with four chosen born global firms, coupled with public database and Web site searches. Through the use of qualitative methods, propositions were developed. Findings – This paper provides insights regarding how the institutional environment, both formal and informal, has a strong positive relationship with born global firm’s international performance. Moreover, Sun Tzu’s significant strategies play a critical role in the internationalization process of born global firms in emerging markets. Originality/value – Although existing studies discuss the application of Eastern philosophical strategies adopted by firms in emerging markets, to the best of our knowledge, this is one of the earliest studies which evaluates the moderation effect of Sun Tzu’s significant strategies on the relationship between institutional environment and business performance. The paper contributes to scholarly discourse on the influencing factors of born global firm’s internationalization process. It also has practical relevance to international entrepreneurs and SMEs from emerging markets.

Serendipitous opportunities, entry strategy and knowledge in firms' foreign market entry

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mikael Hilmersson ◽  
Martin Johanson ◽  
Heléne Lundberg ◽  
Stylianos Papaioannou
Keyword(s):  
Market Entry ◽  
Foreign Market ◽  
Ordinary Least Squares ◽  
Experiential Knowledge ◽  
Foreign Market Entry ◽  
Learning Theories ◽  
Content Type ◽  
Entry Strategy ◽  
Regression Tests

PurposeFew researchers and even fewer practitioners would deny that serendipitous events play a central role in the growth process of firms. However, most international marketing models ignore the role of serendipity in the opportunity discovery process. The authors provide a nuanced view on international opportunities by developing the role of serendipitous opportunities in the foreign market entry process. The authors develop a model integrating the notions of serendipity, entrepreneurial logic, experiential knowledge and network knowledge redundancy. From the study’s model, the authors condense three sets of hypotheses on the relationships among experiential knowledge and entry strategy, network knowledge redundancy, entry strategy and serendipity.Design/methodology/approachThe authors confront the study’s hypotheses with data collected on-site at 168 Swedish firms covering 234 opportunities, and to test the hypotheses, the authors ran ordinary least squares (OLS) regression tests in three steps.FindingsThe results of the study’s analysis reveal that experiential knowledge and network knowledge redundancy both lead to a logic based on rigid planning and systematic search, which in turn reduces the likelihood that serendipitous opportunities will be realized in the foreign market entry process.Originality/valueThis is the first study that develops a measure of opportunities that are the outcome of serendipitous events. In addition, the authors integrate network and learning theories and internationalization theory by establishing antecedents to, and outcomes of, the entry strategy.

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