Efficiency versus effectiveness in business networks |
| |
| Institution: | 1. Business Administration Department of Information & Operations Management Mays Business School, Texas A & M University Department of Information & Operations Management, College Station, TX 77843-4217, United States;2. Department of Management and Business Administration University of Chieti and Pescara, Viale Pindaro 42 - 65127, Pescara, Italy;1. Computer Information Systems, Eastern Michigan University, 419 Owen Bldg., Ypsilanti, MI 48197, United States;2. Information Systems, University of Texas Rio Grande Valley, 1201 W. University Drive, Edinburg, TX 78539, United States;3. Decision and Information Sciences, Oakland University, 342 Elliott Hall, Rochester, MI 48309, United States;1. School of Management, University of Science and Technology of China, 96 Jinzhai Road, Hefei, 230026, China;2. Research Center for Smarter Supply Chain, Dongwu Business School, Soochow University, 50 Donghuan Road, Suzhou, 215006, China;1. Research Center on Fictitious Economy and Data Science, Chinese Academy of Sciences, Beijing 100190, China;2. School of Economics and Management, University of Chinese Academy of Sciences, Beijing 100190, China;3. Key Research Laboratory of Big Data Mining and Knowledge Management, Chinese Academy of Sciences, Beijing 100190, China;4. Department of Logistics and Maritime Studies, Faculty of Business, The Hong Kong Polytechnic University, Hong Kong, China;1. Department of Industrial Management, Faculty of Management and Accounting, Karaj Branch, Islamic Azad University, Karaj, Iran;2. Department of Business and Management Science, NHH Norwegian School of Economics, 5045 Bergen, Norway |
| |
| Abstract: | Efficiency and effectiveness are central terms in assessing business performance, yet the challenge for companies is to balance efficiency with effectiveness in business networks. Companies often fail to achieve differentiation and innovation in their surrounding networks, through dealing with efficiency and neglecting effectiveness. This article describes the term efficiency as a necessary condition or hurdle reflected in the company's operating margins, and ‘effectiveness’ as the company's ability to generate a sustainable growth of earnings in its surrounding network. The study builds on notions of efficiency and effectiveness using empirical research in manufacturer-retailer networks conducted between 2002 and 2005. The study draws conclusions to the importance of linking efficiency and effectiveness and more widely on companies' performance in business networks. |
| |
| Keywords: | |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
