Firm competencies on market entry success: Evidence from a high-tech industry in an emerging market

This study explores the effects of three firm competencies, namely, business network, new product development (NPD), and marketing management on market entry success of a high-tech industry in an emerging market. Business network encompasses research and development (R&D) partnership, inter-organizational network, and government relationship (guanxi). NPD consists of R&D capability and product process innovation, while marketing management encompasses distribution channel, promotion, branding, and information management. Using data from 55 biopharmaceutical multinational companies in China, this study applies structural equation modeling technique with confirmatory factor analysis for testing and estimating relationships. We find that only marketing directly influences entry success, whereas the other two yield indirect effects. Our study also suggests the critical role of business network as a prerequisite for entry process. Simultaneously, NPD serves as the driving force of marketing through the creation of product competitiveness

Organizational Culture and Relationship Skills

While both the strategic management and the network literature recognize the importance of inter-firm relationships for explaining competitive advantage, the question why firms differ in their ability to benefit from these relationships is rarely addressed.This paper aims to begin to fill this gap in the literature. We argue that organizational culture is an important factor influencing the relationship skills of a firm, defined as a firm s ability to manage its ties with other firms, whether these are customers, suppliers, or service providers. We assume relationship skills to be especially relevant for the formation and maintenance of close and durable transaction ties.We test our model on a dataset of 127 Dutch inter-firm relations and find general support.Specifically, we find that firms with organizational cultures characterized by an orientation towards stability and predictability, a positive orientation towards innovation, and not characterized by a strong focus on immediate results, score high on relationship skills.Relationship skills, in turn, are found to have a positive influence on the outcomes of inter-firm relationships in terms of learning, achieving innovations and gaining new contacts, but not in terms of immediate (financial) results.corporate culture;interorganizational relations;networks;strategic management;stability;alliance;Netherlands

Evolution of Supply Chain Collaboration: Implications for the Role of Knowledge

Increasingly, research across many disciplines has recognized the shortcomings of the traditional “integration prescription” for inter-organizational knowledge management. This research conducts several simulation experiments to study the effects of different rates of product change, different demand environments, and different economies of scale on the level of integration between firms at different levels in the supply chain. The underlying paradigm shifts from a static, steady state view to a dynamic, complex adaptive systems and knowledge-based view of supply chain networks. Several research propositions are presented that use the role of knowledge in the supply chain to provide predictive power for how supply chain collaborations or integration should evolve. Suggestions and implications are suggested for managerial and research purposes

Investigating the impact of networking capability on firm innovation performance:using the resource-action-performance framework

The author's final peer reviewed version can be found by following the URI link. The Publisher's final version can be found by following the DOI link.Purpose The experience of successful firms has proven that one of the most important ways to promote co-learning and create successful networked innovations is the proper application of inter-organizational knowledge mechanisms. This study aims to use a resource-action-performance framework to open the black box on the relationship between networking capability and innovation performance. The research population embraces companies in the Iranian automotive industry. Design/methodology/approach Due to the latent nature of the variables studied, the required data are collected through a web-based cross-sectional survey. First, the content validity of the measurement tool is evaluated by experts. Then, a pre-test is conducted to assess the reliability of the measurement tool. All data are gathered by the Iranian Vehicle Manufacturers Association (IVMA) and Iranian Auto Parts Manufacturers Association (IAPMA) samples. The power analysis method and G*Power software are used to determine the sample size. Moreover, SmartPLS 3 and IBM SPSS 25 software are used for data analysis of the conceptual model and relating hypotheses. Findings The results of this study indicated that the relationships between networking capability, inter-organizational knowledge mechanisms and inter-organizational learning result in a self-reinforcing loop, with a marked impact on firm innovation performance. Originality/value Since there is little understanding of the interdependencies of networking capability, inter-organizational knowledge mechanisms, co-learning and their effect on firm innovation performance, most previous research studies have focused on only one or two of the above-mentioned variables. Thus, their cumulative effect has not examined yet. Looking at inter-organizational relationships from a network perspective and knowledge-based view (KBV), and to consider the simultaneous effect of knowledge mechanisms and learning as intermediary actions alongside, to consider the performance effect of the capability-building process, are the main advantages of this research

The moderating effect of brand orientation on inter-firm market orientation and performance

While prior research has shown that market and brand orientation are key contributors to successful business performance, research to date has not fully explored how inter firm collaboration for these two key orientations can enhance business performance. The purpose of the paper is to investigate the relationship between inter-firm market and performance; to test for the moderating role of brand orientation in that relationship. A total of 169 completed pairs of surveys were collected of small and medium enterprises operating internationally in a variety of industries in Switzerland. The results show that inter-firm market and brand orientation are two antecedents of marketing and financial performance. The impact of inter-firm market on marketing and financial performance is significant when the brand orientation is favorable. This study extends previous research by examining the moderating role of brand orientation on inter firm market orientation, which is important, especially for firms wanting to increase their brand reputation by entering into partnerships with other firms. Further research is indicated, to identify the key moderators of the driving force of inter-firm market in relation to business performance and the reason why maintaining a strong brand presence is important in the international marketplace

Measuring the degree of virtualization. An empirical analysis in two Austrian industries.

Strategic management literature suggests that especially in young and dynamic industries Virtual Corporations are more likely to emerge, as this type of organization is flexible enough to deal with rapidly changing environments. This paper challenges the proposition that environ-mental uncertainty and technological change lead to organizational adaptation towards virtual structures. We analyzed companies of two Austrian industries, data processing and engineering, which are characterized by different rates of innovation and environmental uncertainty, and compare their strategic, structural, and process characteristics by measuring their Degree of Virtualization. Results indicate almost no difference in the Degree of Virtualization. From these findings, we draw implications for the theoretical concept of Virtual Corpora-tions as well as for empirical research. (author's abstract)Series: Report Series SFB "Adaptive Information Systems and Modelling in Economics and Management Science

Global Human Resource Metrics

[Excerpt] What is the logic underlying global human resources (HR) measurement in your organization? In your organization, do you measure the contribution of global HR programs to organizational performance? Do you know what is the most competitive employee mix, e.g., proportion of expatriates vs. local employees, for your business units? (How) do you measure the cost and value of the different types of international work performed by your employees? In the globalized economy, organizations increasingly derive value from human resources, or “talent” as we shall also use the term here (Boudreau, Ramstad & Dowling, in press). The strategic importance of the workforce makes decisions about talent critical to organizational success. Informed decisions about talent require a strategic approach to measurement. However, measures alone are not sufficient, for measures without logic can create information overload, and decision quality rests in substantial part on the quality of measurements. An important element of enhanced global competitiveness is a measurement model for talent that articulates the connections between people and success, as well as the context and boundary conditions that affect those connections. This chapter will propose a framework within which existing and potential global HR measures can be organized and understood. The framework reflects the premise that measures exist to support and enhance decisions, and that strategic decisions require a logical connection between decisions about resources, such as talent, and the key organizational outcomes affected by those decisions. Such a framework may provide a useful mental model for both designers and users of HR measures

El capital social como enfoque teórico en Dirección Estratégica

[EN] The objective of this research paper is to investigate, from a theoretical point of view, the strategic relevance of social capital. In recent years, academic literature in this field has witnessed remarkable growth, recognizing social capital as a key element for companies, due to its contribution to the creation of competitive advantages. However, it might be said that its development is still emerging, given the number of discrepancies among researchers regarding its definition, measurement, and its positive or negative impact on other variables. For this reason, a set of empirical studies that show the social capital effect on diverse types of organizational results have been reviewed, taking as a reference the definition and dimensions proposed by Nahapiet and Ghoshal (1998). Additionally, different theoretical links between social capital and four related Strategic Management approaches are presented, such as the Intellectual Capital-Based View, the Knowledge-Based View, the Resource-Based View and the Dynamic Resource-Based View. A main conclusion drawn from this review is that social capital, being a knowledge-based resource, enables access to both internal and external resources and thus a firm’s competitive advantage and, consequently, its value creation can be generated from the combination of both areas. Going in depth and clarifying this strategic linkage are thus a challenge to address in future studies.[ES] El principal objetivo de este trabajo es mostrar la relevancia estratégica del capital social organizacional desde un punto de vista teórico. En los últimos años, la literatura académica relacionada con este concepto ha experimentado un notable crecimiento, reconociendo que el capital social es un elemento fundamental para que las empresas generen ventajas competitivas. Sin embargo, se podría afirmar que su desarrollo es todavía incipiente al existir multitud de discrepaciancias entre los investigadores acerca de su conceptuación, la medición de sus dimensiones o los efectos positivos o negativos que podría tener sobre otras variables. Por este motivo, tomando como referencia la definición y dimensiones propuestas por Nahapiet y Ghoshal (1998), se ha realizado una revisión de las investigaciones que, de manera empírica, han estudiado las relaciones entre el capital social y distintos tipos de resultados organizacionales. Igualmente, se exponen diferentes nexos teóricos encontrados entre el capital social y los principales enfoques en Dirección Estratégica como son Enfoque Basado en el Capital Intelectual, el Enfoque Basado en el Conocimiento, el Enfoque Basado en los Recursos y el Enfoque Basado en las Capacidades dinámicas. Se concluye que el capital social, como recurso basado en el conocimiento, podría permitir el acceso a otros recursos internos o externos, y que la creación de valor y la generación de ventajas competitivas de una empresa puede provenir de la combinación de ambos ámbitos. Así, futuros estudios deben encaminarse hacia la profundización y clarificación de este nexo estratégico

An empirical investigation of Network-Oriented Behaviors in Business-to-Business Markets

This study is concerned with the extent to which network-oriented behaviors directly and/or indirectly affect firm performance. It argues that a firm's interaction behaviors in relation to an embedded network structure are key mechanisms that facilitate the development of important organizational capabilities in dealing with business partners. Such network-oriented behaviors, which are aimed at affecting the position of a company in the network, are consequently important drivers of firm performance, rather than the network structure alone. We develop a conceptual model that captures network-oriented behaviors as a driving force of firm performance in relation to three other key organizational behaviors, i.e., customer-oriented, competitor-oriented and relationship-oriented behaviors. We test the hypothesized model using a dataset of 354 responses collected via an on-line questionnaire from UK managers, whose organizations operate in business-to-business markets in either the manufacturing or services sectors. This study provides four key findings. First, a firm's networkoriented behaviors positively affect the development of customer-oriented and competitor-oriented behaviors. Secondly, they also foster relationship coordination with its important business partners within the network. Thirdly, the effective management of the firm's portfolio of relationships is found to mediate the positive impact of network-oriented behaviors on firm profitability. Lastly, closeness to end-users amplifies the positive effect of network-oriented behaviors on relationship portfolio effectiveness