The town of bent necks: interorganizational causes and consequences of relational rivalry

PurposeThis study aims at developing a conceptual framework for the networking behaviour of firms having relational and non-relational competitive interactions. Initially the question of how negative ties change the meaning of competition for the rival firms was discussed and then how these types of interactions can change possible networking preferences of organizations were theoretically estimated.Design/methodology/approachThis study suggests that relational rivalry is closely linked with negative ties and even the emergence of strong positive ties among firms is viewed as a consequence of dyadic negative interactions. Different types of competitive conditions were classified under non-relational and relational categories.FindingsNot applicable.Originality/valueA majority of the studies on interorganizational networks are mostly concerned with positive tie formation patterns and the consequences of these interactions. However, there is limited number of macro-level studies, which realized explanatory potential of the negative interfirm relations. Negative interorganizational relations may also make significant contributions to the discipline of economic sociology.

Specificity of Pragmatism Evaluation of Interfirm-Relations between Enterprises at Network Structures in the Conditions of Business Macro Trends

Modern scientific research points to the fact that the enterprises at network structures are a kind of system that is formed of different components, which are related by various connections. In this context, it is quite relevant to study the assessment of inter-firm relationships of enterprises at network structures in the context of business macro trends. The article substantiates the list of indicators that can be used to assess the most important properties at network on the basis of existing economic relationships and determine certain of their limits, according to which they can be classified as network. It is established that the relationships should not be extremely rigid, as in this case they will be inherent in the hierarchically centralized business structures. It is investigated that the choice of system at indicators for assessing inter-firm relationships and establishing their upper and lower limits will allow based on statistical processing of source information to draw clear conclusions about the presence or absence at network structure. Based on this, it is established that indicative analysis can also be used to assess the dynamics at network, establish its type and study the transformation processes and draw conclusions. It is noted that the studied method of analysis relationships based on an indicative approach has the following disadvantages: the need to use to calculate the array of business information, the collection of which is problematic for managers of companies due to the significant time spent on it; fears of disclosing commercial information, as well as the advantages – ease of calculation at indicators and fairly high accuracy of assessment. It is established that for economically developed countries the tendency to form inter-firm networks on market principles with the use of decentralized mechanisms of coordination activities based on partnership trust prevails, the Ukrainian economy is dominated by hierarchical networks with centralized management. Keywords: enterprises of network structures, interfirm relations, evaluation indicators, partnership relations, interfirm networks.

Breaking the Chains of Open Innovation: Post-Blockchain and the Case of Sensorica

Open innovation is a concept in flux; from the practice of large-scale, internet-mediated collaboration, to a strategic option and business model for firms. However, the scope and breadth of its transformative dynamic is arguably restrained. Despite the theoretical and empirical benefits of openness, established firms face significant challenges deploying the coordination patterns of open innovation communities, further reducing the potential of spill-overs in the supply chain. Viewed differently, open innovation presents more user-centric and responsible innovation paths. These are manifested in the processes and outputs of open innovation by empowering participation and by successfully employing the capacities of user communities. To reap the benefits of open innovation, a rapid reconfiguration of the production and exchange structures is needed in intrafirm and interfirm relations. Sensorica is an open enterprise that achieves such forms of organization and a unique techno-social infrastructure supporting them. It illustrates a potential path that can realize the full potential of open innovation, for users, firms, and the economic system as a whole.

An empirical study of Chinese SME grocery retailers’ distribution capabilities

Purpose – 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. Design/methodology/approach – 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. Findings – 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. Originality/value – 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.