From Quiet to Noisy Politics: Transformations of Swiss Business Elites’ Power

During most of the twentieth century, it was possible to consider Switzerland a coordinated market economy, characterized by dense interfirm networks and the strong role of business associations. Thanks to their cohesion and collective organization, in a context of quiet politics and informal institutions, business elites could largely self-regulate major socioeconomic issues in the shadow of politics. However, since the end of the twentieth century, Swiss business elites have undergone profound changes not only in their composition, but also in their coordinating capacity, their growing political divisions, and their connections to politics. This growing sociological and political fragmentation, combined with changes in the way of doing politics, through noisier and more formal politics, has weakened the instrumental power of Swiss business elites. To compensate for this loss of direct influence, business elites of the largest Swiss companies have developed new political strategies, relying on their growing structural power in a context of global and financial capitalism.

Interfirm network structure and firm resources: Towards a unifying concept

PURPOSE: The objective of this paper is to propose a concept of network resource distribution that systematically unifies the resource-based and network-based perspectives on interfirm networks and enables integrated analysis of how firm resources and network structure interact to affect firm performance. METHODOLOGY: This conceptual paper first reviews the extant literature on interfirm networks and then develops the unifying concept of network resource distribution. FINDINGS: The literature review indicates that strategy scholars have long sought to integrate the resource-based view and the social network explanations of firm performance but, thus far, only a partial integration has been achieved. In particular, studies on the resource-level heterogeneity of interfirm networks have largely been limited to the analysis of firm dyads. How firm resources and network structure beyond the immediate network partners interact to affect firm performance has not yet been adequately addressed. The proposed unified concept of network resource distribution systematizes prior research and illuminates how network structure and firm resources interact to affect firm performance beyond the immediate network partners. IMPLICATIONS FOR THEORY AND PRACTICE: For theory, this paper highlights gaps in the extant literature on interfirm networks and proposes a unifying concept that can be utilized to address these gaps and to develop further theory in the area. For practice, this paper encourages managers not to limit their analyses of strategic alliances to immediate partnerships; it is also crucial to consider the partners and their resources, and reflect on how they are related to one another outside of the immediate partnership portfolio. ORIGINALITY AND VALUE: Network resource distribution is a novel concept that ties together and systematizes various strands of research on interfirm networks, thus providing a foundation for future research in the area. The concept is also amenable to detailed operationalization, facilitating subsequent quantitative testing of theoretical arguments combining firm resources and the structure of a network.

Exploring Efficient Network Structure of Interfirm Knowledge Sharing From Perspective of Optimal Node Degree

Background: Network structure is a critical issue for efficient interfirm knowledge sharing. The optimal node degree turns out to be decisive because it is generally regarded as a core proxy of network structural characteristics. This paper is to examine what is the optimal node degree for an efficient network structure. Methods: Based on an interaction rule combining the barter rule and the gift rule, we first describe and then build a knowledge diffusion process. Then using four factors, namely network size, network randomness, knowledge endowment of network, and knowledge stock of each firm, we examine the factors that influence the optimal node degree for efficient knowledge sharing. Results: The simulation results show that the optimal node degree can be determined along the change in outer factors. Furthermore, changing the network randomness and network size has little impact on node degree. Instead, knowledge endowment of network and knowledge stock of each firm both have significant impact on the node degree. Conclusion: We find that an optimal node degree can always be found in any condition, which confirms the existence of a balanced state. Thus, policymakers can determine the appropriate number of links to avoid redundancy and thus reduce cost in interfirm networks. We also examine how different factors influence the size of the optimal node degree, and as a result, policymakers can set an appropriate number of links under different situations.

Interfirm networks and search-transfer problem: the role of geographic proximity

PurposeThis paper represents an empirical study of how geographic proximity influences the search advantage and the transfer problem of interfirm networks.Design/methodology/approachBy using the data collected from 226 Chinese manufacturing firms, this study examines the proposed hypotheses.FindingsThe authors’ findings suggest that (1) geographic proximity is an important antecedent for promoting knowledge transfer, whereas it lowers the degree of knowledge novelty; and (2) geographic proximity also moderates the effects of interfirm networks on knowledge novelty and knowledge transfer.Originality/valueThis study contributes the literature of interfirm network and provides practical implications by addressing the ways in which manufacturing firms can promote knowledge transfer and acquire novel knowledge.

Networked Technonationalism in the Biomedical Industry

The book discusses the importance of global competition in biomedical and new-technology sectors to understanding international trade and investment in the twenty-first century. It argues that countries that pursue networked technonationalism (NTN) have been the most effective in improving innovation capacity and fostering frontier-industry growth. Technonationalism is state-led strategic investment in new technologies, perceived as key to national security. From the most closed system (Japan’s classic technonationalism) to the most open, or technoglobal system (Singapore) technationalism exists on a continuum. A typology of knowledge and network regimes is proposed to explain variations in domestic capacities, institutions, and policy and network practices. Comparisons of human capital development (STEM education), knowledge production (scientific citations and patents), institutions supporting innovation (technology licensing organizations, incubators), and interfirm networks and international openness (inward foreign direct investment, engaging with diaspora, and immigration) elucidate distinctions.