Commentary on leveraging knowledge based resources: The role of contracts

The commentary first discusses the main argument of Mouzas and Ford. The commentary then addresses how contracts can be understood in business networks by relating the concept to the three main IMP models. The conclusion is that the article is an important step in linking ideas of business contracts and resource interaction in relational settings. Mouzas and Ford examine how contracts are used to leverage knowledge based resources through interaction with other idiosyncratically capable firms. In particular, they empirically investigate the use of umbrella contracts as manifestations of joint consent in manufacturer — retailer relationships as a specific form of contract for this purpose. The authors take an industrial networks perspective, making (forms of) contracts resources within a relational, interactive frame of exchange. This in itself is valuable, as contracts in an industrial networks perspective may easily be viewed as one out of many contextual parameters to transactions carried out within business relationships. There are three general models or frameworks in IMP that may be used to analyse the role of contracts within an interactive and relational frame of exchange. These are the interaction model (Håkansson, 1982), the actors-resources-activities (ARA) model (Håkansson & Snehota, 1995) and the 4 resource model (Håkansson & Håkansson and Waluszewski, 2002).     

From internal resources to collective opportunities

This commentary essay explores some conceptual elements for research on new business formation as opportunity creation in resource networks and goes on to examine the methodological requirements of such research. Ciabuschi, Perna and Snehota (this issue) provide an interesting discussion and illuminating case study on new business formation through global resource combining in business networks. The rich, in-depth study opens several avenues for future research.     

Independent financial advisors: open innovation and business performance

The purpose of this paper is to examine the behaviour of small independent financial advisors (IFAs) in terms of their involvement in networks and open innovation. A mail survey of small IFAs was undertaken utilising previously validated scales to assess business performance in relation to networking and open innovation. Results indicate that IFAs involvement in networks and open innovation can assist business performance. The managerial implications are that IFAs and other financial services organisation sector firms may be able to achieve higher sales growth by participating in networks and engaging in open innovation. This paper provides an original empirical assessment of possible strategies to enhance sales growth in small financial service sector firms facing volatile market conditions.     

Institutions and entrepreneurship development in Russia: A comparative perspective

In this paper we use a comparative perspective to explore the ways in which institutions and networks have influenced entrepreneurial development in Russia. We utilize Global Entrepreneurship Monitor (GEM) data to study the effects of the weak institutional environment in Russia on entrepreneurship, comparing it first with all available GEM country samples and second, in more detail, with Brazil and Poland. Our results suggest that Russia's institutional environment is important in explaining its relatively low levels of entrepreneurship development, where the latter is measured in terms of both number of start-ups and of existing business owners. In addition, Russia's business environment and its consequences for the role of business networks contribute to the relative advantage of entrepreneurial insiders (those already in business) to entrepreneurial outsiders (newcomers) in terms of new business start-ups.     

Commentary to “From new-product development to commercialization through networks”

This commentary essay explores some broader implications of the article by Aarikka-Stenroos and Sandberg (in this issue) concerning two issues: the principal character of innovation processes and the delineation of networks. The article provides an interesting discussion on how firms can overcome the obstacles of successful commercialization of innovations by the utilization of various types of networks involving developers, producers and users alike. This commentary recognizes two problems in this setting: An overly linear view on innovation processes and NPD, and an overly simplistic view on the delineation of networks.     

Paths of evolution for the Chinese migrant entrepreneurship: a multiple case analysis in Italy

Chinese diaspora is one of the most important areas in the field of immigrant entrepreneurship and the Chinese case is, for absolute numbers, entrepreneurship rates and scientific attention, one of the most significant phenomena in the world and in Italy. While much of the literature on the topic focuses on ethnic networks and social ties, there is a lack of studies that acknowledge the role of business networks in the later growth of migrant entrepreneurship, when the importance of social ties within the ethnic community diminishes. This paper tries to answer the following research question: Which is the role of ethnic networks and business networks in the path of evolution of Chinese migrant entrepreneurship? Thus, the paper analyses the structure and characteristics of ethnic networks and business networks and the role of each in the growth and evolution of Chinese migrant entrepreneurship. Our research considers business networks as the main focus of analysis that may replace social ties in consolidating insidership in new business settings and in finding new opportunities. A qualitative methodology is adopted, namely a multiple case study. Five cases of individual Chinese companies settled in a specific area are presented, for which the networks in which they are involved are traced and analysed. The case analysis shows that in the evolution of Chinese migrant entrepreneurship, ethnic networks are very important in the early phases of the business, but the role of cross-cultural business networks becomes relevant for further development. Implications—managerial and for policy makers—are highlighted and discussed.     

A commentary essay on “Resources prospectively: How actors mobilize resources in business settings”

This commentary essay explores the topic of mobilizing resources and specifically addresses the article “Resources prospectively: How actors mobilize resources in business settings” (Finch et al., in this issue). This article views access to resources as the foundation for interaction between firms and as mediated via developing business relationships. The article by Finch, Wagner and Hynes adds insights into this particular context by investigating the role of the individual in mobilizing resources and initiating a discussion on how resources are created.     

Part II: Titles and Abstracts

ABSTRACT

The commentary discusses the analysis of the content of business marketing textbooks by Backhaus, Mell and Sabel and in particular the dichotomy managerial used to classify the approaches adopted. It is argued that such a dichotomy tends to veil different and changing assumptions regarding the task of marketing management in business markets, and the claim is made that the interplay between the different approaches is beneficial for the development of the body of knowledge of the discipline of business marketing.     

Interactive resource development in new business relationships: A commentary essay

This commentary essay presents suggestions for future research in two major areas based on the article, “Interactive resource development in new business relationships” (Gadde, Hjelmgren, & Skarp, in this issue). The first area concerns cognition and sense-making processes both of which are currently under-researched in business network studies as well as in resource development studies. The second area highlights the so-called ‘hidden qualities’ of functions or benefits/damages that emerge when a resource is activated and its value is realized when combined with other resources. A large number of unexplored questions still remain for research on resource development, but the topics suggested above would offer important new knowledge to the field.     

New business formation in a rapidly growing economy: the Irish experience

The extraordinary growth of the Irish economy since the mid-1990s—the ‘Celtic Tiger’—has attracted a great deal of interest, commentary and research. Indeed, many countries look to Ireland as an economic development role model, and it has been suggested that Ireland might provide key lessons for other EU members as they seek to achieve the objectives set out in the Lisbon Agenda. Much of the discussion of Ireland’s growth has focused on its possible triggers: the long-term consequences of the late 1980s fiscal stabilisation, EU structural funds, education, wage moderation and devaluation of the Irish punt. The industrial policy perspective has highlighted the importance of inflows of foreign direct investment, but a notable absence from the discourse on the ‘Celtic Tiger’ has been any mention of the role of new business venture creation and entrepreneurship. In this paper we use unpublished Irish VAT data for the years 1988–2004 to provide the first detailed look at national trends in business birth and death rates in Ireland over the ‘take-off’ period. We also use sub-national VAT data to shed light on spatial trends in new venture creation. Our overall conclusions are that new business formation made no detectable contribution to the acceleration of Ireland’s growth in the late 1990s, although we do find evidence of spatial convergence in per capita business stocks.     

Explaining autonomy variations across value‐chain activities in foreign‐owned subsidiaries

This article is one of the first to combine the asset bundling model and neo‐configurational perspective to explain autonomy variations across different value‐chain activities in foreign‐owned subsidiaries. We develop tentative answers to three research questions based on survey data of subsidiaries located in Taiwan and Thailand. We use fuzzy set qualitative comparative analysis technique to analyze the data. We found that competence bundles in primary and support activities are key for autonomy development across basic and advanced value‐adding activities. Strong relationships with local business networks are more important for autonomy development than links to universities or governmental institutions. The global city location plays a lesser role than expected and the geographic distance is a hindrance to autonomy development in basic as well as advanced value‐chain activities.     

HRD in the People's Republic: The MBA ‘with Chinese characteristics’?

In this article, we consider Human Resource Development (HRD) in the People's Republic and analyze the value of an MBA in a transitional economy. MBA education is growing rapidly in China, while at the same time business schools in America are facing declining applications and mounting criticisms of the product. Should then the Master of Business Administration (MBA) be valued differently in a developing economy, or is it open to the same criticisms leveled at it in the west? We use the ‘resource-based’ theory of the firm to attempt to answer this question. We trace the development of MBA education in China between 1984 and the present, placing this process in the context of the country's radical educational, economic and political changes. We ask if the Chinese government has adopted the same approach to fostering MBA provision as it has to nurturing business growth. If so, what might we learn about possible future trends in tertiary business education? In order to look more closely at the practicalities of the Chinese MBA, we briefly consider the development of one of the earliest programs in China—the European Union-funded China Europe International Business School (CEIBS).     

Establishment modes and network relationships of foreign subsidiaries

This research examines the effects of the establishment mode of foreign subsidiaries (greenfield vs acquisition) on the type of network relationships (social vs business) they develop in local markets. The authors use the network approach to better understand the role played by local subsidiaries for the development of networks in multinational enterprises. The empirical study is based on a dataset covering 120 foreign-owned subsidiaries in Italy. The findings show that acquired subsidiaries are more directly involved in business relationships, whereas greenfield subsidiaries pay more attention to social relationships before building business networks. The establishment mode thus affects the type of network relationships developed by local subsidiaries, which can help them to overcome the liabilities of foreignness and outsidership.     

A Reply to the Commentaries on “Business-to-Business Marketing Textbooks: A Comparative Review”

ABSTRACT

In this commentary, the authors respond to the commentary by Professors Butaney, Hutt and Speh, Narus, and Plank on their commentary article “Business-to-Business Marketing Textbooks: A Comparative Review.” The discussion involves responses to particular aspects of each commentary as well as some general thoughts on future developments of business-to-business marketing textbooks, particularly with respect to the influence of new information and communication media. In responding to the commentaries, the authors argue that while they are aware of a strong subjective element which still remains, their comparative examination of a selection of English-speaking textbooks on business marketing aims at providing theoretically-grounded insights that are helpful for both instructors and practitioners. They argue that the application of Bloom's taxonomy of educational objectives (1956) provides an appropriate framework for this objective and its operationalization, respectively. Although the comparison constitutes only a first step directed towards a thoroughly systematic analysis of textbooks on the subject, hopefully, it may nevertheless prove its fruit-fulness in fostering the discussion on future developments of business marketing textbooks.     

<Emphasis Type="Italic">Guanxi</Emphasis> and Business Ethics in Confucian Society Today: An Empirical Case Study in Taiwan

Guanxi, or social networks common in Confucian cultures, has long been recognized as one of the major factors for success when doing business in China. However, insider networks in business are certainly not confined to Asian cultures, nor is the attendant possibility for corruption. This study obtained original data to investigate current Taiwanese perceptions of (1) how guanxi is established and cultivated; (2) how guanxi actually is practiced now and people’s acceptance of it; and (3) the effects of guanxi on business operations, employment/promotion, and social justice and fairness. The researchers also hope to (4) verify some arguments made by pioneering researchers. The authors speculate on how these attitudes may affect behavior in business transactions in hopes of making readers more aware of differing cultural values that may create unexpected ethical dilemmas. They suggest that professional ethical codes should provide guidance on the practice of guanxi in a Confucian society and that special emphasis or training in interpreting those codes may be required.     

External Relationships and the Small Business: A Review of Small Business Alliance and Network Research*

In order to thrive, small businesses are often advised to develop relationships with external organizations that have the potential to assist business development, survival, and growth. A focus on the external relationships of the small business underlines the vital importance of external resources in moving a small business toward increased success and profitability. Covering the period from 1990 to 2002, this paper reviews the small business literature as it relates to the use of these external relationships (such as organizational partnerships, networks, and alliances). In response to both academic and practitioner demand for further research in this area, an exhaustive analysis of the relevant literature was conducted and three “meta” research questions representing the connections within this literature were formed. The resource‐based view of the firm, resource dependency theory, and punctuated equilibrium theory are proposed as useful starting points for exploring these research questions and can give direction for moving forward in this research area.     

Incubators: Tool for Entrepreneurship?

One of the biggest barriers for the development of incubators in Europe is the lack of entrepreneurship and the underdevelopment of seed financing and business angel networks. While incubation is increasingly being used as a tool for promoting entrepreneurship and start-ups, leading to new policy incentives, the content of the concept is becoming more and more polysemic. Completely different approaches tend to be associated with the incubator concept, which hence becomes more of an umbrella concept. This paper aims to combine a conceptual analysis with an analysis of economic reality, both in the U.S.A. and in Europe. It warns against non-accurate evaluations of the impact of incubators if one does not take into account the different types of incubators. The paper focuses on the dynamic process of incubatio and concludes by underlining the importance of close links between incubators and business angels networks.     

Political actions in business networks a Swedish case

In international business studies, as well as in political science, the influence of political rules on business firms is assumed to be homogeneous and unidirectional. However, if the relationship between the political and the business actors is seen as an interaction, a different conclusion will be reached. We would like to add more knowledge to international business studies by analysing the interaction between governmental bodies and business units using a network model. In this paper, we study a ‘political case’ — the Bofors-India case — and analyse how this affair influenced other Swedish companies and their way of doing business in India. The question addressed is how the interaction between some parts of the government and a company — the development of one business relationship — is interwoven with other relationships. One conclusion reached is that a political act toward one MNC will affect other companies, although not in the same way. The degree to which and the way in which the other companies will be influenced depends on where they are positioned within the networks in relation to the problematic relationship.