The institutional embeddedness of local inter-firm networks: a leverage for business creation

There is an increasing concern for the notion of ‘embeddedness’ of economic activity; yet the conceptualization of the concept and its operationalization remain underdeveloped. First, embeddedness may concern, on the one hand, the structure of relations that tie economic actors together (structural embeddedness) and, on the other hand, the social strands supplementing economic strands in each relation (substantive embeddedness). In this paper, a network framework is outlined which proposes several layers or ‘orders’ of embeddedness. Focusing on small firms, the point of departure is individual exchange relationships as personal ties combining economic and social concerns. First-order embeddedness concerns the localized business networks created by combining these dyadic relations. Second-order embeddedness is achieved when considering also the memberships of business persons in economic and social local institutions while third-order embeddedness concerns the special cases where these institutions bridge gaps between firms. The network model is operationalized and applied to a small Swedish industrial (furniture) community, its firms and economic/social institutions. The findings generally support the applicability of the model and demonstrate the supplementarity of different layers/orders of embeddedness. Further research challenges are deduced and implications for practitioners are provided.     

Modeling node heterogeneity in latent space models for multidimensional networks

Multidimensional network data can have different levels of complexity, as nodes may be characterized by heterogeneous individual-specific features, which may vary across the networks. This article introduces a class of models for multidimensional network data, where different levels of heterogeneity within and between networks can be considered. The proposed framework is developed in the family of latent space models, and it aims to distinguish symmetric relations between the nodes and node-specific features. Model parameters are estimated via a Markov Chain Monte Carlo algorithm. Simulated data and an application to a real example, on fruits import/export data, are used to illustrate and comment on the performance of the proposed models.     

The underlying potential of supply management in value creation

This study discusses the value-creation potential of supply management in firms, highlighting the significance of buyer–supplier collaboration, as well as resources and capabilities in the process. It is a conceptual study that builds on the theoretical basis of the resource-based view and the value net approach. Given the critical role of supply management in generating value the strategic emphasis in future should be on triple value creation. It is concluded that this cannot be achieved by focusing only on dyadic relationships or relationships in chains, and that supply relations should be viewed in a wider network context.     

Toward a structural view of co-opetition in supply networks

Co-opetition, or simultaneous competition and cooperation, in the supply chain management literature has been treated as a dyadic relational phenomenon where the buyer's strategy is considered to be the primary driver. In this paper, we move beyond the dyadic view and propose a theory of co-opetition in supply networks. We argue that as firms within a supply network interact over time to access, share, and transform resources, new ties between firms are formed and existing ties dissolve, giving rise to co-opetition dynamics at the network level. Taking a configurational approach, we employ the inter-related dimensions of ties between firm, firm-level task, network-level objective, and governance to specify four practical supply network archetypes that cover a wide range of economic activities. We then explain how coopetitive relationships may evolve in these supply network archetypes. Specifically, we discuss how relationships form or dissolve in these archetypes and how local structural changes lead to co-opetition dynamics at the network level. We also discuss the implications of such dynamics from a managerial perspective.     

Market novelty, competence-seeking and innovation networking

Studies of innovation networking have frequently been concerned with the occurrence of dyadic relationships and with their apparent impact on simple measures of firm-level innovation outputs. This paper takes a more detailed look by analyzing the connection between different types of innovation and forms of networking. Based on the market novelty of innovation outcomes and the extent to which innovation activities require new competences, four types of innovation are identified. It is proposed that these types correlate with various innovation network dimensions, including the volume of networks, the strength and content of ties, and the specificity of ties. Drawing on survey data of 594 innovations realized by Dutch small firms, it is observed that the requirement to access new competences for innovation correlates positively with the number of network partners involved. We also note more subtle connections between types of innovation and networking, including that novel innovation outputs correlate with using network partners as a source of inspiration, whilst new competences associate with networking for knowledge capital. In the latter case, these activities also draw on new and intended ties relatively often, i.e. network partners which are actively sought out for the specific contributions they may make to the innovation process. Finally, innovation which is simultaneously new-to-the market and requires new competences uses strong ties relatively often. Implications for innovation policy and practice are discussed.     

Understanding supplier structural embeddedness: A social network perspective

Despite a significant amount of attention, the potential of supplier structural embeddedness (i.e., the value of the structural position in an extended network) to improve the performance of a buying firm remains poorly understood. This study drew on the social network theory to empirically examine a conceptual framework specifying a relationship between the efforts of a buying firm to understand supplier structural configuration and operational and financial performance. This study also examines how the comprehension of structural embeddedness is transformed into performance for a buying firm through relational embeddedness (i.e., the strength of a dyadic relationship). Survey data collected from companies in the U.S. were analyzed using hierarchical regression analysis. The results indicate that the understanding of the structural dimension does help to enhance operational performance of a buying firm, but it does not lead to better financial performance. Empirical evidence shows that a buying firm does improve the quality of a dyadic relationship between the buying firm and a supplier by understanding how the supplier is connected to other firms and what positional values are produced. Further, relational embeddedness is found to mediate the influence of the enhanced understanding of the structural configuration on operational performance.     

On boundary spanners and interfirm embeddedness: The role of guanxi institution in China

Based on social embeddedness theory and institutional theory, we construct a research model that depicts how boundary spanners’ personal relationships affect dyadic embeddedness at the organizational level, under the varying influence of guanxi institution across different regions in China. We empirically test our model by analyzing data collected from 225 retail gas stations within the distribution network of a major Chinese petroleum company. Our analysis shows that boundary spanners need to first establish relational ties, which, in turn, influence interfirm dyadic embeddedness. Additionally, the results indicate that the informal institutions, such as guanxi in China, exert an indirect effect on personal trust through personal closeness. The informal institutions also moderate the effects of personal level trust on organizational level trust, which is a key linkage between personal relationship and interfirm embeddedness.     

Does liking explain variance above and beyond LMX? A meta-analysis

Although liking or affect was a central construct during the 1980's and 1990's in supervisor-subordinate dyadic research, a review of the literature suggests that since the turn of the century leader-member exchange (LMX) has emerged as the primary construct to assess relational quality. A question exists whether liking, as a reflection of interpersonal attraction, should continue to be included in organization research that focuses on dyadic relations and whether liking is redundant to LMX. To answer this question, we examined the incremental validity and construct redundancy of liking in relation to LMX based on meta-analyses. Results indicated that liking and LMX have similar patterns with common correlates with respect to effect sizes and significance. Moderator analysis revealed that reporting source of liking and LMX result in significantly higher correlations with antecedent and outcome variables when common reporting source data is used. Incremental variance analysis results demonstrated that liking can potentially explain additional variance over LMX for consequences. Overall, our results suggest that liking is an important and distinct construct that facilitates the development of LMX and therefore should not be abandoned in organizational research that examine supervisor-subordinate relational quality.     

Analysis of technological innovation based on citation information

The paper discusses the dynamic properties of the patent network. Technological innovation occurs frequently, and predicting where it will happen is difficult because an economic system can adapt to changing technology. We construct a patent network based on the cited relations between patents and analyze the properties of the patent network from January 1976 to December 2005 by using USPTO patent data. We find that technology trends, which are calculated by our measures, are similar with historical trends of technology, showing that our measures would be useful to predict future technology relations. Also, we find that the change of similarity between patents shows meaningful results in terms of technological innovation.     

From Dyadic Change to Changing Business Networks: An Analytical Framework

This paper investigates the dynamics of business networks. We distinguish between confined dyadic change and network change and show how change itself may be incremental or radical, using the punctuated equilibrium model of change. The concept of the critical event is introduced to highlight radical change. We propose an analytical framework where the ideas of mechanism, nature and forces of change are integrated. Two circles of network change (incremental and radical) are presented and transfers from one circle to the other are discussed. We believe this conceptual elaboration may have significant implications for future network dynamic research     

Strategies affecting Twitter-based networking pattern of South Korean politicians: social network analysis and exponential random graph model

This paper examines the Twitter networking pattern of “following” and “mention” relationships between South Korean politicians. The data were obtained from the Twitter profiles of Korea’s national assemblymen and the most influential political figures. We conducted social network techniques including exponential random graph model and a regression method. The results suggest that these politicians employ two different strategies to establish relationships with other politicians on Twitter. One is “following” other politicians as a social ritual based on dyadic reciprocity, and the other is to “mention” other politicians as asymmetric political support based on the public popularity of their peers on Twitter.     

Utilizing e-business technologies in supply chains: The impact of firm characteristics and teams

This paper presents findings from an exploratory study that analyzes the drivers and outcomes of e-business technology use in the supply chain. Using a combination of case studies and survey data from a diverse sample of industries, the research examines how industry context, firm characteristics and firm-level strategic resources, such as purchasing teams, influence the exploitation of e-business technologies and the relationship between e-business technology use and firm performance. Based on a synthesis of related literatures from transaction cost economics and the relational view of the supply chain, a two-dimensional framework for e-business technology is proposed with transactional and relational dimensions. However, empirical analysis indicated that transactional technologies can be further subdivided into two factors: dyadic cooperation and price determination. Significant differences were found between the two dimensions in terms of their overall levels of adoption, with dyadic coordination being the most widely adopted. In addition, the development of strategic resources expanded, in particular internal and customer teams, the use of e-business technologies expanded. Purchasing organizational structure and firm size also were positively related to the adoption of transactional e-business technologies. Finally, of particular importance to practitioners, e-business technologies targeted at reducing dyadic coordination costs lead to improved financial performance.     

北斗导航公路物流信息系统的数据库设计

数据库在北斗卫星导航信息系统中占有举足轻重的地位,关系到系统的成败,需综合考虑多种因素进行设计。在研究卫星导航系统网络结构、系统功能和模块构成后,提出了系统数据库的设计思想,给出了比较详细的主要数据表结构,并分析了主要数据表之间的关联关系。     

Supply chain environmental R&D cooperation and product performance: Exploring the network dynamics of positional embeddedness

Companies increasingly need to work with their partners to address sustainability issues, but benefits from environmental R&D cooperation can be limited by the complexity of its management. This paper examines how the interplay between dyadic and network relationships can contribute to increase the success of environmental R&D cooperation. Using secondary data, we examine whether the positional embeddedness in the supply network structure of partners engaged in environmental R&D cooperation amplifies the effects of cooperation on product performance. Non-monotonic effects of environmental R&D cooperation and embeddedness are also tested. The results indicate that the positional embeddedness of partners triggered by multiple sourcing strategy amplifies the effects of environmental R&D cooperation on product environmental performance. The interaction effects become however insignificant in the presence of increasing complexity and excessive environmental R&D cooperation.     

Re-visiting collaborative behavior in supply networks – structural embeddedness and the influence of contextual changes and sanctions

This study considers decision making beyond a dyadic buyer-supplier context to the network context. Decisions made by firms are shaped by behavioral norms within the supply network as perceived by the decision makers. Firms can perceive themselves to be part of a collaborative regime or one in which the potential for non-cooperation is high. Further, the ability to put sanctions on non-cooperating firms could shape the overall behavioral patterns in the network. To gain further insights into these aspects and their interactive effects on firm behavior, our study investigates decision-making in supply network by means of behavioral experiments. By organizing practicing managers in a supply network, the study investigates the role of structural embeddedness, incentive structure, and sanctioning mechanisms on the level of collaboration. The results of this study confirm that while sanctions are detrimental for collaborative behavior in a supply network, they play an important role when the underlying norms of governance of such a network are perturbed. The results show that structural embeddedness provides a context that aids adaptive collaborative behavior by firms that are part of the supply network. Once the incentive structure is altered such that there is a higher payoff from defection, the adaptive collaborative behavior is replaced by a behavior in which firms try to maximize their returns and forego collaborative decision-making behavior.     

Taking the leap from dyads to triads: Buyer–supplier relationships in supply networks

A network is made up of nodes and links. The smallest unit that consists of both these network elements is a dyad made up of two nodes (a buyer and a supplier) and the link that connects them (a buyer–supplier relationship).Naturally, the focus of the supply chain management literature has been on this dyad. For instance, a buyer affects a supplier through its supplier evaluation and certificate programs, as well as long-term agreement practices. The relationship between a buyer and its supplier has been characterized as cooperative or adversarial. We have learned a great deal about supply chains through such studies in dyadic context.However, we submit that in a network, a dyad is not the smallest unit of a network. In fact, the smallest unit is a triad, made up of three nodes and the links that connect them. If so, how would this recognition guide us as we move forward to investigate supply chains as a network? What would be its implications to the genre of the literature on buyer–supplier relationships?     

Networks and leadership development: Building linkages for capacity acquisition and capital accrual

Social networks can aid the leadership development process through facilitating access to important developmental assignments and the acquisition of capabilities to handle associated challenges. Although much of the traditional focus of leadership development has been on building intrapersonal capabilities, functioning effectively as a leader necessitates the development of interpersonal capabilities associated with dyadic ties and relational capabilities associated with patterns of ties within networks. Such capabilities allow aspiring managers to accrue not only human capital, but social and system capital as well. Aspiring managers can tap task, career, and friendship/support networks to aid developmental and career success. Structure factors, including strategic choices, network characteristics, and the technological interface moderate the ability of managers to convert potential network contacts into significant leadership development and capital accrual. Personal factors also influence leadership development prospects. Overall, there are many ways in which network concepts associated with dyadic and relational levels of analysis can facilitate addressing the challenges that are key to leadership development.     

Human resource management and industrial relations in Italy

Evolution of industrial relations and human resource management in Italy in the last decade is analysed through qualitative case studies, quantitative surveys and a combination of qualitative/quantitative data originating from network researches.

In the 1980s, complementary industrial relations/human resource management in Italy were based on the trade-off between employment security, work flexibility and industrial adjustment. In the 1990s this complementarity is under pressure from a second restructuring process (and privatization) of Italian enterprises.

The last surveys underline that the basic features of industrial relations were not altered, but the data confirm the critical importance of the relationship between industrial relations and human resource management and also the fragility of this balance.     

Knowledge flow and inter-firm networks: The influence of network resources,spatial proximity and firm size

The objective of this paper is to analyse the characteristics and nature of the networks that firms utilize to access knowledge and facilitate innovation. The paper draws on the notion of network resources, distinguishing two types: social capital–consisting of the social relations and networks held by individuals; and network capital–consisting of the strategic and calculative relations and networks held by firms. The methodological approach consists of a quantitative analysis of data from a survey of firms operating in knowledge-intensive sectors of activity. The key findings include: social capital investment is more prevalent among firms frequently interacting with actors from within their own region; social capital investment is related to the size of firms; firm size plays a role in knowledge network patterns; and network dynamism is an important source of innovation. Overall, firms investing more in the development of their inter-firm and other external knowledge networks enjoy higher levels of innovation. It is suggested that an over-reliance on social capital forms of network resource investment may hinder the capability of firms to manage their knowledge networks. It is concluded that the link between a dynamic inter-firm network environment and innovation provides an alternative thesis to that advocating the advantage of network stability.     

Psychological and implied contracts in organizations

Two forms of unwritten contracts derive from relations between organizations and their members. Psychological contracts are individual beliefs in a reciprocal obligation between the individual and the organization. Implied contracts are mutual obligations characterizing interactions existing at the level of the relationship (e.g., dyadic, interunit). Employee/employer relations and changing conditions of employment give rise to issues not addressed in conventional transaction-oriented models of motivation and individual responses. The development, maintenance, and violation of psychological and implied contracts are described along with their organizational implications.Promise is most given when least is said. (George Chapman,Hero and Leander, 1598)