Chapter 5 The Effect of Network Competence and Environmental Hostility on the Propensity of SMEs to Internationalise

2011 ◽  
pp. 97-114 ◽  
Author(s):  
Lasse Torkkeli ◽  
Kaisu Puumalainen ◽  
Sami Saarenketo ◽  
Olli Kuivalainen
Keyword(s):  
Network Competence ◽  
Environmental Hostility

The effect of network competence and environmental hostility on the internationalization of SMEs

2012 ◽  
Vol 10 (1) ◽  
pp. 25-49 ◽  
Author(s):  
Lasse Torkkeli ◽  
Kaisu Puumalainen ◽  
Sami Saarenketo ◽  
Olli Kuivalainen
Keyword(s):  
Network Competence ◽  
Environmental Hostility

scholarly journals Measuring network competence in buyer-supplier relationships

2011 ◽  
Vol 12 (4) ◽  
pp. 429-447
Author(s):  
Gert Human
Keyword(s):  
South Africa ◽  
South African ◽  
Individual Characteristics ◽  
Measurement Scale ◽  
Business Networks ◽  
Business Managers ◽  
Supplier Relationships ◽  
African Context ◽  
Network Competence ◽  
Business To Business

Managing multiple buyer-seller relationships in business-to-business networks demands an understanding of a firm’s competence to manage in an interconnected environment.  This paper reports on an attempt to measure network competence by using the NetCompTest scale in business-to-business markets in South Africa. Based on a pilot study refinement, the paper proposes an adjusted measurement scale and details the results of a second round of measurement conducted amongst 495 business-to-business managers in South Africa. The results established partial support for the use of the NetCompTest scale in a South African context, and analysis of variance indicated that some differences in the measurement based on firm and individual characteristics can be observed in the data. The paper assists in theory-building and provides managerial insights for managing buyer-supplier relationships in networks.

Network competence

2003 ◽  
Vol 56 (9) ◽  
pp. 745-755 ◽  
Author(s):  
Thomas Ritter ◽  
Hans Georg Gemünden
Keyword(s):  
Network Competence

Entrepreneurial Orientation and Environmental Hostility: A Threat Rigidity Perspective

2019 ◽  
Vol 44 (6) ◽  
pp. 1174-1198 ◽  
Author(s):  
Patrick M. Kreiser ◽  
Brian S. Anderson ◽  
Donald F. Kuratko ◽  
Louis D. Marino
Keyword(s):  
Behavioral Change ◽  
Entrepreneurial Orientation ◽  
Negative Relationship ◽  
Capital Allocation ◽  
Marginal Costs ◽  
Threat Rigidity ◽  
Entrepreneurial Capital ◽  
Environmental Hostility

We posit that environmental hostility exhibits an inverse U-shaped relationship with a firm’s entrepreneurial orientation. We suggest a nuanced perspective on the threat rigidity argument that firms generally retrench from entrepreneurial capital allocation behaviors as hostility increases. We argue that firms are likely to act opportunistically and increase EO, but only to the point where the marginal costs of such activity outweigh the marginal benefits, at which point EO drops precipitously. Analyzing 60,440 observations from 6,481 firms across 373 industries from 1998 through 2017, our results indicate that EO exhibits a generally negative relationship with environmental hostility. Further, we examine a potential moderating influence of recoverable slack on the hostility–EO relationship, arguing that recoverable slack represents a meaningful buffer on behavioral change stemming from changing environmental hostility.

scholarly journals Institutional environment and network competence in successful SME internationalisation

2019 ◽  
Vol 36 (1) ◽  
pp. 31-55 ◽  
Author(s):  
Lasse Torkkeli ◽  
Olli Kuivalainen ◽  
Sami Saarenketo ◽  
Kaisu Puumalainen
Keyword(s):  
Dynamic Capabilities ◽  
Institutional Environment ◽  
Institutional Environments ◽  
Cross Sectional Survey ◽  
Cross Sectional ◽  
Content Type ◽  
International Performance ◽  
Network Competence ◽  
The Impact ◽  
Institutional Drivers

Purpose The purpose of this paper is to examine the impact of institutional environment on the international performance of small- and medium-sized enterprises (SMEs) and how this relationship is influenced by network competence. Design/methodology/approach This study uses a quantitative approach. In total, 119 internationally operating Finnish SMEs from five industry sectors are sampled via a cross-sectional survey. Data are analysed through regression modelling. Findings The international performance of SMEs is influenced directly and indirectly by institutional drivers. The results show that network competence mediates the positive relationship between institutional drivers and international performance. Research limitations/implications Network capability development can help SMEs leverage more or less favourable institutional environments for successful internationalisation. Perceived institutional drivers directly result in higher performance, but the effect can be partially mediated by dynamic capabilities. The limitations of the study include its single-country context and the cross-sectional nature of the data. Practical implications SMEs should take their home countries’ institutional environments into account, but for long-term success, they should develop the ability to manage their business networks. A conducive institutional environment may help develop competence, which in turn can enable more successful internationalisation in terms of scale, scope and satisfaction. Social implications Decision-makers may benefit from knowing that, in addition to capabilities, an institutionally conducive environment that drives domestic SMEs towards international markets may be an antecedent of successful internationalisation in the SME sector. Originality/value This is one of the few studies to illustrate how network capabilities can mediate the influence of institutional factors on entrepreneurial internationalisation. It combines institutional theory and the dynamic capabilities view to explain successful SME internationalisation.

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