The role of networking in the competitiveness of firms (original) (raw)

The role of networking in the competitiveness profile of Spanish firms

2005

La internacionalización de mercados, de actividades económicas y la creciente competencia global son algunos de los factores que caracterizan los sistemas productivos actuales. A ello se suma una intensa complejidad tecnológica que afecta tanto a productos como a procesos productivos, concediéndole a la innovación un papel clave en la competitividad de las empresas manufactureras. En ambos procesos, las relaciones de cooperación empresarial se erigen como forma organizativa de creciente importancia. En este documento se explora la relación entre cooperación y comportamiento competitivo en cuatro industrias manufactureras: alimentación, química, electrónica y automóviles. La información estadística se ha obtenido a partir de una encuesta realizada a nivel microeconómico y diseñada específicamente con este fin en España. Los resultados que se derivan del análisis empírico, basados en la aplicación de un modelo Logit Universal (PLUM), confirman los efectos positivos de las relaciones c...

Network companies and competitiveness: A framework for analysis

European Journal of Operational Research, 1999

Business networking for the purpose of becoming globally more competitive seems to form the very basis of strategic decisions in many companies today. The concept of``network company'' has recently been the subject of many studies in the literature, perhaps mostly due to its world wide practice among more successful companies. Yet, there is no model-based formal treatment of the concept per se leading to the development of frameworks that are instrumental in formulating networking strategies. This paper addresses itself to formalizing the concept of``network company'' within the context of global competition. For this purpose,``network company'' is positioned in the value chain of pertinent product±market chain systems and then its functioning is decomposed into a set of minimal and basic components, which are termed``elementary resources, methods, products, and activities''. The set thus de®ned at that detail level is used to analyze and evaluate``network companies'' at any desired condensed level re¯ecting the needs of a project or a function for the purpose of competitive strategy formulation. The formal analytical framework developed is then discussed in association with three basic approaches to competitive strategy formulation: resource-based strategy, activity-based strategy, and strategy based on the economic theory of the ®rm. The usefulness of the proposed framework in connection with these approaches is expressed in terms of formal propositions. Ó

Can coopetition be source of competitive advantage for strategic networks?

Contributions on competitive strategy and advantage have been long concentrated on the single firm. In Europe small and medium enterprises still prevail, business districts are widespread and rivals are called to cooperate, in order to face the global context. Inter-firm collaboration seems to be the main path to survive and compete. Literature has more concentrated on the reasons for success of strategic alliances and networks even if many of them fail or do not take off. In the light of relational view and the absorptive capacity approach, the paper tries to verify whether coopetiton, can be, through the relations that generates, source of competitive advantage or rather of disadvantage. Theoretical hints are tested empirically on a sample of firms in Italy operating in tourism industry.***

The innovation process and network activities of manufacturing firms

Innovation networks of manufacturers are currently receiving much attention as a competitive strategy. The contribution represents a response to the growing recognition that there are very important reasons why we need a better understanding of the relationship between innovation and networking. This response is conceptual in form, but enriched with some empirical evidence from the metropolitan region of Vienna. The paper demonstrates unambiguously the importance of external network activities during the innovation process that are organized around five types of networks: customer networks, manufacturing supplier networks, producer service supplier networks, producer networks and co-operation with research institutions and departments of universities. The data clearly indicate that networking is not only and primarily a metropolitan phenomenon. Spatial proximity is just one, but evidently not the decisive criterion for innovation-oriented relationships. The geography of networking largely extends to national and international levels.

Competitiveness and production networks: the case of the Argentine automotive sector

2004

This paper offers an empirical methodology for evaluating the development of production networks. It looks at the linkages between the flow of knowledge within the production network and the development of firm-endogenous capabilities, and applies this methodology to the Argentinean automotive industry in order to study its weaknesses and potential. The paper finds that the automotive network is partially integrated and based on incomplete interactions. In general, the firm's innovative performance is based on its own strategies and background, and the effects of a closer interaction with the network are undermined. However, this paper concludes that the network is significant for explaining the complexity of innovative activities and work organization.

How building Efficient Networks to help Firms to invent New Innovative and Competitive Strategies

2015

For the last 20 years, the world economy has evolved at great speed. Every good, capital asset, knowledge is mobile and induces more competition. Innovate in commodities is a complex process which requires more cooperation. For innovating in the Knowledge Economy, firms must create nowadays “win win situations” among individuals in creating networks. The networks are thus useful nowadays for firms to imagine new innovative strategies. The building of networks authorizes the interactions between the agents, the environment and the institutions. Thinking the interdependences of the agents and institutions are not new for the evolutionary theory (Veblen, 1925 and Common, 1931) but nowadays, the institutions must be more flexible than before for helping agents to adapt to the Knowledge Economy. On the basis of the role of meso networks, we propose to the firms and the countries exporting industrial goods on the world markets, a new long run specialization and a new short run competitive...

The role of networks in stimulating innovation and catching-up in European enterprises: A literature review

2005

We analyse the ways in which various actors affect changes in competitiveness at the firm level, focusing on the roles of external actors such as investors, creditors, customers, suppliers, universities, research institutes, local governments, etc., in their relationships with the firm; that is, with the effects of various kinds of networks on competitiveness. We begin by discussing the central analytical concepts, briefly reviewing the general literature on how networks affect enterprise performance generally and in the specific transition environment. We then overview the relevant literature on enterprise performance and its relation to various types of networks (with a special emphasis on the role of foreign investors) in three Central European and two West European cohesion countries (the Czech Republic, Hungary, Ireland, Poland and Spain) -countries which share a need to upgrade their industries with respect to the older member countries of the European Union.

Impact of Corporate Network Competences on the Competitiveness of Companies

2014

According to our research companies that have closer connections with their clients, suppliers and research institutes use the latest digital/network tools proactively, their organizational and inter-organizational relations are technology oriented, they are more likely to achieve success in research and development (innovation). Existence and development of network competences have a positive impact on corporate culture, inter-organizational technical co-operation, on openness and integration as well as on further innovations. The research plan envisaged making 30 interviews. In the preparation of the sample, we planned to interview in 80% representatives of companies where either digital innovation or the use of digital networks plays a crucial part in their business profile. The remaining 20% were intended to be made up of manufacturing and service companies. The analysis of the sample monitored the way companies and organizations allocated supplementary resources on behalf of information management in order to develop competences and to implement digital innovations. From the results - as suppositions for a future quantitative survey to test - we can state the followings: Using digital network solutions for the purposes of networking is mostly typical of large B2C enterprises, or firms and organizations where the development of (natural) networks plays a crucial part in their business profile (non-governmental organizations). The staff of companies with a “digital profile” play a leading role in terms of utilizing informal professional communities and networks (both online and offline). This mostly involves professional communities, professional platforms and meetings. Authors: Zoltan Veres, Katalin Feher, Adel Balogh Keywords: network, competence, digital embeddedness, education