scholarly journals The Effect of Network Structure on Performance in South Korea SMEs: The Moderating Effects of Absorptive Capacity

2018 ◽  
Vol 10 (9) ◽  
pp. 3174 ◽  
Author(s):  
Choonghyun Kim ◽  
Jaekang Lee

This study has analyzed how the network structure (density, centrality) affects the performance (convergence, overall) in Small and Medium-Sized Enterprises (SMEs) with the different business exchange activities. In addition, we conducted a moderating effect of absorptive capacity (ability, motivation). Based on previous literature about the network and absorptive capacity, research hypotheses were developed and tested using a sample of 226 SMEs in South Korea. The results show that network density and centrality have a positive effect on perceived convergence and overall performance. These results are consistent with previous network studies relating to structural characteristics. To raise total performances in firms with different business exchange activities, they need to enhance density and centrality. For example, firms with different business exchange activities and high levels of density and centrality are able to easily obtain various types of information from other members of 7000 firms in Korea. Through this, they can improve performance. We also conducted the moderated regression analysis. The results show that employee ability has a positive moderating effect on the relationship between centrality and the overall performance while employee motivation has a negative moderating effect. The implications and directions for future study along with limitations are presented.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Manuel-Alejandro Ibarra-Cisneros ◽  
María del Rosario Demuner-Flores ◽  
Felipe Hernández-Perlines

PurposeThe purpose of this article is to study the moderating effect of absorptive capacity, defined as the set of organizational routines and processes through which companies acquire, assimilate, transform and exploit knowledge to produce a dynamic organizational capacity (Zahra and George, 2002), in three strategic orientations: market orientation; technology orientation and entrepreneurial orientation and their positive relationship in the performance of the medium and large Mexican manufacturing firms. Likewise, it is determined whether these three combined SOs influence firm performance.Design/methodology/approachThe data was collected from 171 medium and large-sized Mexican manufacturing firms. The proposed hypotheses are tested using partial least square structural equation modeling (PLS-SEM).FindingsDespite the importance of knowledge for the development of firms, the results indicate that the moderating effect of absorptive capacity is only present in the relationship between entrepreneurial orientation and firm performance. That is, firms cannot take advantage of knowledge simultaneously between the three strategic orientations. For their part, market orientation and entrepreneurial orientation exert a positive influence on firm performance.Practical implicationsThe main practical implication for the manufacturing industry is that they must develop mechanisms to detect what kind of knowledge affects each strategic orientation, in this way it can make the absorptive capacity influence the relationships between SO and FP.Originality/valueThe main contribution consists of studying the moderating effect of the absorptive capacity on the relationship between three strategic orientations and firm performance, and not concentrating solely on the simultaneous use of these strategies as is commonly done.


2021 ◽  
Vol 10 (12) ◽  
pp. 796
Author(s):  
Shimei Wei ◽  
Jinghu Pan

In light of the long-term pressure and short-term impact of economic and technological globalization, regional and urban resilience has become an important issue in research. As a new organizational form of regional urban systems, the resilience of urban networks generated by flow space has emerged as a popular subject of research. By gathering 2017 data from the Baidu search index, the Tencent location service, and social statistics, this study constructs information, transportation, and economic networks among 344 cities in China to analyze the spatial patterns of urban networks and explore their structural characteristics from the perspectives of hierarchy and assortativity. Transmissibility and diversity were used to represent the resilience of the network structure in interruption scenarios (node failure and maximum load attack). The results show the following: The information, transportation, and economic networks of cities at the prefecture level and higher in China exhibit a dense pattern of spatial distribution in the east and a sparse pattern in the west; however, there are significant differences in terms of hierarchy and assortativity. The order of resilience of network transmissibility and diversity from strong to weak was information, economic, transportation. Transmissibility and diversity had nearly identical scores in response to the interruption of urban nodes. Moreover, a highly heterogeneous network was more likely to cause shocks to the network structure, owing to its cross-regional urban links in case of disturbance. We identified 12 dominant nodes and 93 vulnerable nodes that can help accurately determine the impetus behind network structure resilience. The capacity of regions for resistance and recovery can be improved by strengthening the construction of emergency systems and risk prevention mechanisms.


2017 ◽  
Vol 23 (6) ◽  
pp. 1144-1166 ◽  
Author(s):  
Lara Agostini ◽  
Anna Nosella ◽  
Benedetta Soranzo

Purpose The purpose of this paper is to investigate the influence that different components of relational capital (marketing capability, open innovation with business and scientific partners, technological reputation, brand) have on customer performance (CP). Moreover, the moderating effect of absorptive capacity on such relationships is tested. Design/methodology/approach First, the direct relationship between the different components of relational capital and CP is analyzed through a linear regression model. Then, to test the moderating effect, two distinct regression analyses are conducted into two sub-samples, defined according to the level of absorptive capacity. The authors carried out these analyses on a sample of 150 small- and medium-sized enterprises (SMEs) in the medium- and high-tech B2B context. Findings Results of this study prove that CP is enhanced through firm marketing capability, open innovation with business partners and technological reputation, while brand and open innovation with scientific partner do not have an association with CP. In particular, the impact of marketing capability and open innovation with business actors on CP is greater for firms with higher absorptive capacity. Research limitations/implications This paper, highlighting the relevance of relational capital and absorptive capacity in improving CP, enhances our knowledge about the factors that help to strengthen the relationships with customers, which is an under-investigated issue especially for SMEs competing in B2B industries, and extends our knowledge on open innovation practices. Practical implications Findings of this paper suggest that, to achieve better CP, managers should pay special attention to nurturing their marketing capability and high-quality relationships with external actors and invest in absorptive capacity to enhance the positive effect of such linkages. Originality/value This work, combining the external perspective of relational capital and the internal organizational dimension of absorptive capacity, provides valuable insights about the knowledge and resource mix that firms might rely on to achieve better customer satisfaction and loyalty.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Scott DuHadway ◽  
Carlos Mena ◽  
Lisa Marie Ellram

PurposeSupply chain fraud is a significant global concern for firms, consumers and governments. Evidence of major fraud events suggests the role of supply chain structures in enabling and facilitating fraud, as they often involve several parties in complicated networks designed to obfuscate the fraud. This paper identifies how the structural characteristics of supply chains can play an important role in enabling, facilitating and preventing fraud.Design/methodology/approachThe research follows a theory elaboration approach. The authors build on structural holes theory in conjunction with a multiple case study research design to identify new concepts and develop propositions regarding the role of network structure on supply chain fraud.FindingsThis research shows how structural holes in a supply chain can create advantages for unscrupulous firms, a role we call tertius fraudans, or the cheating third. This situation is exacerbated by structural ignorance, which refers to the lack of knowledge about structural connections in the network. Both structural holes and structural ignorance can create information gaps that facilitate fraud, and the authors propose solutions to detect and prevent this kind of fraud.Originality/valueThis paper extends structural holes theory into the domain of fraud. Novel concepts including tertius fraudans, structural ignorance and bridge collapse are offered, alongside a series of propositions that can help understand and manage structural supply chain fraud.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aidatu Abubakari ◽  
Kwame Simpe Ofori ◽  
Henry Boateng ◽  
Koffi N’Da ◽  
Robert Ebo Hinson

Purpose It is well documented in the extant literature that knowledge plays a crucial role in small and medium enterprise (SME) internationalization. Exporting SMEs from developing economies faces many challenges, including lack of knowledge about institutions in foreign markets, inadequate knowledge about foreign institutions and limited internationalization knowledge (IK). However, research on the export performance of SMEs has thus far focused on the internationalization strategies of multinational corporations. This study aims to explore the effect of foreign market knowledge on SME export performance. The authors also assessed the moderating effect of employee absorptive capacity in the knowledge-performance nexus. Design/methodology/approach The authors adopted a survey design to collect data from owners/managers of SMEs exporters in the Greater Accra region of Ghana. A total of 350 questionnaires were distributed based on convenience. Of this number, 257 usable responses were used in the final analysis. The authors tested the proposed model using partial least squares-structural equation modeling. Findings The findings show that the three types of foreign market knowledge tested in this study, namely, foreign institutional knowledge (FIK), foreign business knowledge and IK have positive and significant effects on SME exporters’ performance. It also shows that employees’ absorptive capacity affects the relationship between FIK and SME exporters’ performance. Originality/value The study demonstrates the types of knowledge relevant to SME export performance. The study further demonstrates the moderating effect of employee absorptive capacity on the relationship between knowledge and export performance. The study advances existing knowledge on SME performance, especially from an emerging economy context.


Author(s):  
Kwang-Hi Park ◽  
Hyunlye Kim ◽  
Jaehee Kim

Stress and depression are representative of the mental health problems of university students worldwide. This cross-sectional study explored the moderating effect of mindfulness on the influence of stress on depression according to the degree of life stress. The participants were 738 university students in years 2–4 in five 4-year universities in South Korea. Depression was positively correlated with stress and negatively with mindfulness at a statistically significant level. In multiple regression analysis, stress was found to have an effect by increasing depression, and mindfulness by relieving depression. In the moderated multiple regression analysis, mindfulness had a moderating effect on the impact of stress on depression only in low-stress groups, showing that the interaction of stress with mindfulness was significantly negative (β = −0.11, t = −2.52, p = 0.012) and the inclusion of this interaction significantly increased the explanatory power for depression variation (F change 6.36, p = 0.012) in the full model. In conclusion, we suggest considering stress levels in the development of mindfulness-based intervention strategies to effectively manage the depression of university students.


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