Effects of Network Capabilities on Firm Performance across Cultures
The purpose of this study is to identify key factors related to network capabilities that enhance the performance of Chinese, Turkish and German firms. Chinese (n = 107), Turkish (n = 129) and German (n = 109) MBA-students completed a questionnaire, based on an earlier version developed by Kenny , which included questions on the respective firm, its performance and network capabilities. The predictors of firm performance varied by country: in China "information sharing" and "trust" were important, in Turkey "network coordination" and in Germany "human capital resources." In addition, each country had its own specific drivers of firm performance. The findings of this paper should enhance understanding of the cross-cultural differences and assist managers when planning to join foreign corporations. (original abstract)
- Abrahamson, E., Rosenkopf, L. (1993), Institutional and Competitive Bandwagons: Using Mathematical Modelling as a Tool to Explore Innovation Diffusion, Academy of Management Review, Vol. 18, pp. 487-517.
- Allik, J., Realo, A. (2004), Individualism-collectivism and social capital, Journal of Cross-Cultural Psychology, Vol. 35, No. 1, pp. 29-49.
- Aulakh, P. A., Kotabe, M., Sahay, A. (1996), Trust and performance in cross-border marketing partnerships: a behavioral approach, Journal of International Business Studies, Vol. 27, No. 5, pp. 1005-1032. [CrossRef]
- Axelsson, B., Easton, G. (1992), Industrial Networks: A New View of the Reality, Routledge, London.
- Balboni, B., Bortoluzzi, G., Vianelli, D. (2014), The Impact of Relational Capabilities on the Internationalization Process of Industrial Subcontractors, Transformations in Business & Economics, Vol. 13, No. 32, pp. 21-40.
- Barney, J. (1991), Firm resources and sustained competitive advantage, Journal of Management, Vol. 17, No. 1, pp. 99-120. [CrossRef]
- Barney, J. B., Arikan, A. (2001), The resource-based view: origins and implications, The Blackwell Handbook of strategic management. Malden, MA: Blackwell.
- Bulkley, N., Van Alstyne, M. W. (2004), Why Information Should Influence Productivity. No. 4680-08. MIT Sloan Research Paper.
- Batjargal, B. (2003), Social capital and entrepreneurial performance in Russia: A longitudinal study. Organization Studies, Vol. 24, pp. 535-556. [CrossRef]
- Baxter, R., Woodside, A. (2011), Interfirm Networks: Theory, Strategy, and Behavior, Emerald Group Publishing.
- Bell, J., McNaughton, R., Young, S. (2001), Born-Again Global Firms: An Extension to the Born Global Phenomenon, Journal of International Management, Vol. 7, No. 3, pp. 173-190. [CrossRef]
- Berulava, G. (2013), Do Trust-Based Relations Improve Firm's Performance? Evidence from Transition Economies. Munich Personal RePEc Archiv.
- Best, M. H. (1990), The New Competition: Institutions of Industrial Restructuring, Harvard University Press, Cambridge.
- Block, J. H., Walter, S. G. (2012), National culture and modes of entry into entrepreneurship, available at: http:.//ssrn.com/abstract=20278, accessed: September 9, 2015.
- Bonner, J. M., Kim, D., Cavusgil, S. T. (2005), Self-perceived strategic network identity and its effects on market performance in alliance relationships, Journal of Business Research, Vol. 58, pp. 1371-1380. [CrossRef]
- Bstieler, L., Hemmert, M., (2008), Influence of Tie Strength and Behavioural Factors on Effective Knowledge Acquisition: A Study of Korean New Product Alliances, Asian Business & Management, Vol. 7, pp. 75-94. [CrossRef]
- Burt, R. S. (2000), The network structure of social capital, Research in Organizational Behavior, Vol. 22, pp. 345-423. [CrossRef]
- Cantner, U., Conti, E., Meder, A. (2009), Networks and innovation: the role of social assets in explaining firms' innovative capacity, Jena Economic Research Papers.
- Chen, H., Chen, T., (1998), Network linkages and location choice in foreign direct investment, Journal of International Business Studies, Vol. 29, No. 3, pp. 445-467. [CrossRef]
- Chetty, S., Blankenburg Holm, D. (2000), The Role of Business Networks in the Internationalization of Manufacturing Firms: A Longitudinal Case Study, Advances in International Marketing, Vol. 1, pp. 205-222.
- Chimucheka, T. (2013), Networks and Performance of Small and Medium Enterprises [SMEs] in Different Stages of the Life Cycle: A Case Study of a Small Business in the Netherlands, J Communication, Vol. 4, No. 2, pp. 89-94.
- Contractor, F. J., Lorange, P. (1988), Cooperative Strategies in International Business, Lexington MA:. Lexington Books.
- Coulthard, M., Loos, J. (2007), Networking, the Link in Firm Based Entrepreneurial Orientation [EO] Performance Model. Working Paper, Monash University.
- Cyert, R. M., March, J. G. (1963), A behavioral theory of the firm, Englewood Cliffs, NJ: Prentice-Hall.
- Dyer, J., Singh, H. (1998), The relational view: Cooperative strategy and sources of interorganizational competitive advantage, Academy of Management Review, Vol. 4, pp. 660-679.
- Ellinger, A. D., Ellinger, A. E., Yang, B., Howton, S. W., Baldwin T. T., Danielson C. C. (2002), The Relationship Between the Learning Organization Concept and Firms' Financial Performance: An Empirical Assessment (and Invited Reaction), Human Resource Development Quarterly, Vol. 13, No. 1, pp. 5-29.
- Estrin, S., Meyer, K. E., Bytchkova, M. (2006), Entrepreneurship in transition economies, Oxford Handbook of Entrepreneurship, 693-709.
- Gao, L. (2011), The Internationalization of Chinese Firms, Determinants and the Influence of Dynamic Capabilities and Institutions on the Post-Internationalization Performance, PHD Dissertation, Loughborough University, UK.
- Ge, B., Hisrich, R. D., Dong, B. (2009), Networking, Resource Acquisition, and the Performance of Small and Medium-Sized Enterprises: An Empirical Study of Three Major Cities in China, Managing Global Transitions, Vol. 7, No. 3, pp. 221-239.
- Ghemawat, P., Reiche, S. (2011), National Cultural Differences and Multinational Business, Globalization Note Series.
- Gong, J. J., Suzuki, S. (2013), An Empirical Investigation of Culture and Guanxi Actions between China and Japan, International Journal of Social Science and Humanity, Vol. 3, No. 4, pp. 375-380.
- Grabher, G. (1993), The weakness of strong ties: the lock-in of regional development in the Ruhr area, in: G. Grabher (ed.), The embedded firm. On the socioeconomics of industrial networks, Routledge: London and New York, pp. 255-277.
- Granovetter, M. S. (1973), The strength of weak ties, American Journal of Sociology, Vol. 78, No. 6, pp. 1360-1380. [CrossRef]
- Gray, B. (1994), Survey Results: International Business Skills, Export News, New Zealand.
- Gulati, R. (1998), Alliances and networks, Strategic Management Journal, Vol. 19, No. 4, pp. 293-317. [CrossRef]
- Gulati, R., Nohria, N., Zaheer, A. (2000), Strategic Networks, Strategic Management Journal, Vol. 21, No. 3, pp. 203-215. [CrossRef]
- Hofstede, G. (1980), Culture's consequences: International differences in work-related values, London:. Sage.
- Hofstede, G., Hofstede, G. J. (2005), Cultures and organizations: Software of the mind, New York: McGraw-Hill.
- Hofstede, G. (2011), Dimensionalizing Cultures: The Hofstede Model in Context, Online Readings in Psychology and Culture, Vol. 2, No. 1, pp. 1-26.
- Huggins, R. (2010), Forms of Network Resource: Knowledge Access and the Role of Inter-Firm Networking, International Journal of Management Reviews, Vol. 12, No. 3, pp. 335-352.
- Johanson, J., Vahlne, J. E. (2006), Commitment and opportunity development in the internationalisation process - a note on the Uppsala internationalisation process model, Management International Review, Vol. 46, No. 2, pp. 165-178. [CrossRef]
- Kabasakal, H., Bodur, M. (2004), Humane Orientation in Societies, Organizations, and Leader Attributes, in: R. House, P. J. Hanges, M. Javidan, P. W. Dorfman, V. Gupta (eds.), Culture, leadership, and organizations: The GLOBE study of 62 societies, Thousand Oaks: Sage Publications, CA, pp. 564-601.
- Kenny, B. (2009), A Network Perspective on International Business: Evidence from SMEs in the Telecommunications Sector in Ireland, Unpublished PhD Dissertation, University of Limerick, Ireland.
- King, P., Zhang, W. (2014), Chinese and Western Leadership Models: A Literature Review, Journal of Management Research, Vol. 6, No. 2, pp. 1-21. [CrossRef]
- Kocoglu, I., Imamoglou, S. Z., Ince, H. (2011), The relationship between organizational learning and firm performance: The mediating roles of innovation and TQM, Journal of Global Strategic Management, Vol. 9, pp. 72-88.
- Krause, D. R., Handfield, R. B., Tyler, B. B. (2007), The relationships between supplier development, commitment, social capital accumulation and performance improvement, Journal of Operations Management, Vol. 25, No. 2, pp. 528-545. [CrossRef]
- Lachman, R., Nedd, A., Hinings, B. (1994), Analyzing cross-national management and organizations: A theoretical framework, Management Science, Vol. 40, No. 1, pp. 40-55. [CrossRef]
- Lewis, J. D., Weigert, A. (1985), Trust as a Social Reality, Social Forces, Vol. 63, No. 4, pp. 967-985. [CrossRef]
- Li, Y., Ye, F., Scheu, C. (2014), Social capital, information sharing and performance, International Journal of Operations & Production Management, Vol. 34, No. 11, pp. 1440-1462. [CrossRef]
- Li, S., Lin, B. (2006), Accessing information sharing and information quality in supply chain management, Decision Support Systems, Vol. 42, No. 3, pp. 1641-1656. [CrossRef]
- Ma, X., Yao, X., Xi, Y. (2009), How do interorganizational and interpersonal networks affect a firm's strategic adaptive capability in a transition economy? Journal of Business Research, No. 62, pp. 1087-1095. [CrossRef]
- McGrath, H., O'Toole, T. (2013), Industrial Marketing Management, 42, pp. 1141-1153. [CrossRef]
- Madhavan, R., Iriyama, A. (2009), Understanding global flows of venture capital: Human networks as the "carrier wave" of globalization, Journal of International Business Studies, Vol. 40, No. 8, pp. 1241-1259. [CrossRef]
- Marimuthu, M., Arokiasamy, L., Ismail, M. (2009), Human Capital Development and its Impact on Firm Performance: Evidence from developmental Economics, The Journal of International Social Research, Vol. 2, No. 8, pp. 265-272.
- Mitrega, M., Ramos, C., Forkmann, S., Henneberg, S. (2011), Networking capability, networking outcomes, and company performance. A nomological model including moderation effects. Paper presented at the IMP Conference, Glasgow.
- Mitrega, M., Forkmann, S., Ramos, C., Henneberg, S. (2012), Networking capability in business relationships - Concept and scale development, Industrial Marketing Management, 41, pp. 739-751. [CrossRef]
- Mitrega, M., Pfajfar, G. (2015), Business relationship process management as company dynamic capability improving relationship portfolio, Industrial Marketing Management, 46, pp. 193-203. [CrossRef]
- Mohr, J., Spekman, R. (1994), Characteristics of partnership success: Partnership attributes, communication behaviour, and conflict resolution techniques, Strategic Management Journal, Vol. 15, pp. 135-152. [CrossRef]
- Moizer, P. (2003), How published academic research can inform policy decisions: the case of mandatory rotation of audit appointments, Working Paper, Leeds University.
- Moran, P. (2005), Structural vs. relational embeddedness: social capital and managerial performance, Strategic Management Journal, Vol. 26, pp. 1129-1151. [CrossRef]
- Mu, S., Gnyawali, D. R., Hatfield, D. E. (2007), Foreign Subsidiaries' Learning from Local Environments: An Empirical Test, Management International Review, Vol. 49, No. 1, pp. 72-102.
- Nohria, N., Eccles, R. (1992) Face-to-face: Making network organizations work, in: N. Nohria, R. Eccles (eds.), Networks and organizations: Structure, form, and action, Harvard Business School Press, pp. 288-308.
- Oesterle, M. J., Richta, T. (2008), Internationalization and Firm Performance. State of the Empirical Research and the Need for Improved Approaches, Paper presented at the 34th EIBA Annual Conference, 11-13 December, Tallinn, Estonia.
- Overby, J. W., Min, S. (2001), International supply chain management in an Internet environment. A network-oriented approach to internationalization, International Marketing Review, Vol. 18, No. 4, pp. 392-420. [CrossRef]
- Ozcan, P., Eisenhardt, K. M. (2009), Origin of alliance portfolios: entrepreneurs, network strategies, and firm performance, The Academy of Management Journal, Vol. 52, No. 2, pp. 246-279. [CrossRef]
- Peppard, J., Rylander, A. (2006), From Value Chain to Value Network: Insights for Mobile Operators, European Management Journal, Vol. 24, No. 2, pp. 1-22. [CrossRef]
- Porsche Automobil Holding SE. (2007), Group Management Report.
- Rashed, C. A. A., Azeem, A., Halim, Z. (2010), Effect of Information and Knowledge Sharing on Supply Chain Performance: A Survey Based Approach, Journal of Operations and Supply Chain Management, Vol. 3, No. 2, pp. 61-77.
- Redding, G. (1996), Weak organizations and strong linkages: managerial ideology and Chinese family business networks, in: G. Hamilton (ed.), Asian Business Networks, New York, Walter de Gruyter, pp. 47-98.
- Reis, N. R., Ferreira, M. P., Santos, J. C. (2011), The cultural models in international business research, p. A bibliometric study of IB journals, Working Paper No. 76. Center of Research in International Business & Strategy, Portugal.
- Ritter, T., Gemünden, H. G. (2003), Network competence: Its impact on innovation success and its antecedents, Journal of Business Research, Vol. 56, pp. 745-755. [CrossRef]
- Rodríguez-Díaz, M., Espino-Rodríguez, T. (2006), Developing relational capabilities in hotels, International Journal of Contemporary Hospitality Management, Vol. 18, No. 1, pp. 25-40.
- Rowley, T. J., Behrens, D., Krackhardt, D. (2000), Redundant governance structures: an analysis of structural and relational embeddedness in the steel and semiconductor, Strategic Management Journal, Vol. 21, pp. 369-386. [CrossRef]
- Shane, S. (1993), Cultural influences on national differences in rate of innovation, Journal of Business Venturing, Vol. 8, No. 1, pp. 59-74. [CrossRef]
- Sharma, D., Blomstermo, A. (2003), The internationalization process of born globals: a network view, International Business Review, Vol. 12, No. 6, pp. 739-753. [CrossRef]
- Sharma, D., Majkgård, A. (1998), Client following and client seeking strategies in the internationalization of service firms, Journal of Business-to-Business Marketing, Vol. 4, No. 3, pp. 1-40. [CrossRef]
- Sinkula, J. M., Baker, W. E., Noordeweir, T. (1997), A framework for market-based organizational learning: Linking values, knowledge, and behaviour, Journal of the Academy of Marketing Science, Vol. 25, pp. 305-318. [CrossRef]
- Smirnova, M., Naudé, P., Henneberg, S. C., Mouzas, S., Kouchtch, S. P. (2011), The Impact of Market Orientation on the Development of Relational Capabilities and Performance Outcomes: The Case of Russian Industrial Firms, Industrial Marketing Management, Vol. 40, No. 1, pp. 44-53. [CrossRef]
- Stam, W., Arzlanian, S., Elfring, T. (2014), Social capital of entrepreneurs and small firm performance: A meta-analysis of contextual and methodological moderators, Journal of Business Venturing, Vol. 29, pp. 152-173. [CrossRef]
- Sullivan, A., Sheffrin, S. M. (2003), Economics: Principles in action, Pearson Prentice Hall, Upper Saddle River.
- Sullivan-Mort, G., Weerawardena, J. (2006), Networking capability and international entrepreneurship: how networks function in Australian born global firms, International Marketing Review, Vol. 23, No. 5, pp. 549-572. [CrossRef]
- Teece, D. J. (2007), Explicating Dynamic Capabilities: The Nature and Microfoundations of (Sustainable) Enterprise Performance, Strategic Management Journal, Vol. 28, pp. 1319-1350. [CrossRef]
- Teixeira, A. (2002), On the link between human capital and firm performance. A Theoretical and Empirical Survey, FEP Working Paper, No. 121, Portugal.
- Thompson, L. L. (2012), The Mind and Heart of the Negotiator, New Jersey, Pearson Education Inc.
- Triandis, H. C. (2001), Individualism-Collectivism and Personality, Journal of Personality, Vol. 69, No. 6, pp. 907-924. [CrossRef]
- Tsai, K. S. (2006), Adaptive informal institutions and endogenous institutional change in China, World Politics, No. 59, pp. 116-41. [CrossRef]
- Walter, J. (2005), Collaboration within and between firms: Network structures, decision processes, and their impact on alliance performance, PhD Dissertation, University of St. Gallen.
- Walter, A., Auer, M., Ritter, T. (2006), The impact of network capabilities and entrepreneurial orientation on university spin off performance, Journal of Business Venturing, Vol. 21, pp. 541-567. [CrossRef]
- Wincent, J. (2005), Does size matter? a study of firm behaviour and outcomes in strategic SME networks, Journal of Small Business and Enterprise Development, Vol. 12, No. 3, pp. 437-453.
- Zajac, E. J., Olsen, C. P. (1993), From transaction cost to transactional value analysis, Implications for the study of interorganizational strategies, Journal of Management Studies, Vol. 30, pp. 131-145.
- Zhang, Y., Zhang, Z. (2006). Guanxi and organizational dynamics in China: A link between individual and organizational levels, Journal of Business Ethics, 67, pp. 375-392. [CrossRef]
- Zheng, Y., Liu, J., George, G. (2009), The dynamic impact of innovative capability and inter-firm network on firm valuation: A longitudinal study of biotechnology start-ups, Journal of Business Venturing, Vol. 25, No. 6, pp. 593-609. [CrossRef]
- Zhou, L., Wu, W. P., Luo, X. (2007), Internationalization and the performance of born-global SMEs: The mediating role of social networks, Journal of International Business Studies, Vol. 38, pp. 673-690. [CrossRef]
- Zhou, H., Benton, W. C. (2007), Supply chain practice and information sharing, Journal of Operations Management, Vol. 25, No. 6, pp. 1348-1365. [CrossRef]
- Zohdi, M., Shafeai, R., Hashemi, R. (2013), Influence of relational capabilities on business performance. Case of Kermanshah industrial city SMEs, International Research Journal of Applied and Basic Sciences, Vol. 4, No. 3, pp. 589-596.