Partner Substitutability, Alliance Network Structure, and Firm Profitability in the Telecommunications Industry.

Bae, Jonghoon; Insead, Martin Gargiulo

doi:10.2307/20159626

Cited by 177 publications

(4 citation statements)

References 67 publications

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“…The capacity of the focal firms to appropriate value from the network depends not only on the attributes of networks, but also on the nature of the resource characteristics and the management of the relationship between these partners. A firm operating within a network of powerful partners may be unable to appropriate the benefits the network produces (Bae and Gargiulo, 2004). The prominent partners that contribute to joint value creation may also restrict the appropriation capacity of the focal firm, and consequently undermine its market performance.…”

Section: Theory and Hypothesis Developmentmentioning

confidence: 99%

Network resources and the innovation performance

Zheng

2013

Management Decision

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PurposeSo as to understand the effects of network resources on firm innovation and performance within alliances and networks, this paper aims to examine the correlation between network resources and innovation performance through the mediation of capability accumulation and relative bargaining power.Design/methodology/approachDrawing on a survey of 208 Chinese firms engaged in global production networks, this paper extracts four sets of hierarchical regressions to test the impact of network resources on innovation performance.FindingsResults show that network resources are an important source of competitive advantage and the distinction between accessed resources and embedded resources is critical. Other than through direct influences, innovation performance was partly achieved through the mediating role of technological capability and relative bargaining power.Research limitations/implicationsBuilding upon the data introduced in this paper, future studies may examine the effects of network resources in different contexts and the interaction between external and internal resources.Practical implicationsFor firms competing within and between various networks, the forming and utilizing of network resources become a new source of competitive advantage. Hence, careful planning and a consideration of network resources should be undertaken to achieve improvements to a firm's performance.Originality/valueFirst, this paper adds value to the network resource construct by distinguishing two different dimensions. Second, by integrating the mediating effects of technological capabilities and relative bargaining power, this paper reveals the mechanism by which network resources impact innovation performance within various network structures.

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Section: Theory and Hypothesis Developmentmentioning

confidence: 99%

Network resources and the innovation performance

Zheng

2013

Management Decision

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“…In addition to reducing the cost between corporate investors and entrepreneurial ventures, geographic proximity can also enhance knowledge spillover and learning effects and offer strategic guidance to entrepreneurial ventures (Baum et al, 2022;Gargiulo, 2004). More specifically, geographic proximity between entrepreneurial ventures and corporate investors could enhance their interactions and strengthen their mutual trust, which can improve the quality and scope of information exchange (Kang, 2019).…”

Section: The Moderating Role Of Geographic Proximitymentioning

confidence: 99%

Performance implications of corporate venture capital investments for entrepreneurial ventures: the differing moderating effects of R&D intensity before and after IPO

Dai

Wang

Liao

et al. 2022

JEEE

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Purpose One increasingly popular financing option for entrepreneurial ventures is to attract corporate venture capital (CVC) investments. Prior research tends to take a CVC-centric perspective assessing the benefits and contingencies for incumbent firms or corporate investors to engage with entrepreneurial ventures. Few studies have taken the opposite perspective of investigating factors that entrepreneurial ventures need to take into account when engaging with CVC investments. As such, this study aims to investigate pre- and post-IPO entrepreneurial venture performance that partners with CVC providers or corporate investors, as well as to assess organizational and environmental contingencies. Design/methodology/approach This study draws on a sample of 631 entrepreneurial ventures from the CSMAR database ranging from 2009 to 2019, along with CVC financing data from the CVSource database and financial data in entrepreneurial ventures’ annual reports from the Juchao Network. This study applies multiple linear regression modelling and fixed effect panel data analyses to test the proposed hypotheses. Findings The results show that CVC investment contributes to entrepreneurial ventures’ financial performance, both pre- and post-IPO. However, while research and development (R&D) intensity and geographic proximity strengthen the positive relationship between CVC investment and entrepreneurial ventures’ performance pre-IPO, R&D intensity has a negative moderating effect on the relationship between CVC investment and entrepreneurial ventures’ performance post-IPO. Practical implications First, in emerging economies, adopting a CVC financing strategy is an important strategic choice for entrepreneurial ventures that have a great demand for external capital, resources and technology support. Second, leveraging the relationship between external financing and internal R&D investment is essential for them to maintain their core competitiveness and sustainable growth. Moreover, entrepreneurial ventures should deal with the coopetitive relationship with incumbent companies and manage their dependency on other market participants in the external environment. Originality/value This study focuses on the performance implications for entrepreneurial ventures engaging with CVC investments pre- and post-IPO. First, this study broadens and expands prior research on the mechanism of the relationship between CVC and entrepreneurial ventures’ financial performance. Second, the research conducts a comparative study of the moderating effects of different timings. Third, this study applies learning theory to the field of CVC in emerging economies.

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“…Several research findings provide conflicting findings on how the network impacts the industry. For example, few studies have proposed positive effects of networking in automotive, telecommunication, high-tech and manufacturing industries (Ahuja, 2000;Bae and Insead, 2004;Kotabe et al, 2003). However, several other studies have found conflicting results that networking either reduces or does not affect the performance of specific industries (Broekel and Boschma, 2011;Park et al, 2010;Rowley et al, 2000).…”

Section: Theoretical Backgroundmentioning

confidence: 99%

The effect of industry-specific networking behaviour on the internationalization performance of Czech SMEs

Srivastava

Tyll

2020

EBR

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Purpose This paper aims to develop a thorough understanding of industry-specific networking behaviour on the internationalization performance of Czech small and medium enterprises (SMEs). Design/methodology/approach The authors used a profile deviation-ideal profile methodology to explore the ideal networking behaviour profile of different industries. The authors argue that firms adhering to ideal profiles performed well in the international market, while firms deviating from the ideal profile performed poorly. Data were collected through an online questionnaire specifically targeted at Czech SME executives. The authors attempted to explore these issues by using four aspects of networking behaviour to test the ideal networking behaviour profile of five different industries (automotive, telecommunications, construction, audit and finance and transportation). Findings The authors have identified different ideal networking behaviour profile for three industries, which underpinned supported the hypothesis that each dimension of networking behaviour should be fine-tuned for each sector to achieve to attain maximum benefits and performance in the international market. Originality/value Although previous studies supported the role of networking behaviour in improving internationalization performance, multiple studies had also provided conflicting results on how networking affects different industries and it is unclear how and why networking affects these various industries differently. The authors believe that the results research provides empirical evidence in proving that different networking dimensions should be fine-tuned as per industry to achieve the highest performance in the international market. The authors believe that the findings broaden the current understanding of the role of networks in the internationalization. The authors believe that the findings extend the current understanding of the role of networks in the internationalization of SMEs.

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Partner Substitutability, Alliance Network Structure, and Firm Profitability in the Telecommunications Industry.

Cited by 177 publications

References 67 publications

Network resources and the innovation performance

Network resources and the innovation performance

Performance implications of corporate venture capital investments for entrepreneurial ventures: the differing moderating effects of R&D intensity before and after IPO

The effect of industry-specific networking behaviour on the internationalization performance of Czech SMEs

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