Start-ups,entrepreneurial networks and equity crowdfunding: A processual perspective

This paper outlines findings from a large-scale interview based study of start-ups who obtained equity crowdfunding in the UK. It takes a novel integrative approach towards the analysis of entrepreneurial networks by examining both personal and business networks involved in the equity crowdfunding process. Adopting a processual perspective, the empirical findings show that networks and social capital play a critical role in the crowdfunding process. Start-ups leverage, build and draw upon a complex array of network actors and “ties” as they move through the different stages of their crowdfunding journey. The paper shows that this form of funding confers important relational benefits to recipients which amount to “more than money”. It concludes that equity crowdfunding is a highly “relational” form of entrepreneurial finance, requiring holistic forms of empirical investigation. Implications for theoretical development, managerial practice and further research are outlined.     

Co-creating integrated solutions within business networks: The KAM team as knowledge integrator

This study derives from a need that is both practical and theoretical: the need to increase knowledge of how KAM teams might ensure more successful value co-creation with their business customers in the service sector. The KAM teams in this study are formed of members originating from several supplier companies that integrate and apply resources with their customers in a business network. In the co-creation of integrated solutions within such business networks, KAM teams – drawing on organizational learning theory and knowledge management – are considered as knowledge integrators. The purpose of this study is to analyze the KAM teams' absorptive capacity — that is, how knowledge is acquired, assimilated, and applied in the co-creation of integrated solutions. The study employs a qualitative case study approach, based on 30 in-depth interviews in nine supplier companies operating in advertising, marketing and consulting, and in three key customer companies. The study contributes to the KAM literature by providing new conceptual understanding and empirical insight in respect of networked co-creation of integrated solutions and the influence of the KIBS context on the solutions process.     

Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance

This paper draws on the social and behavioral sciences in an endeavor to specify the nature and microfoundations of the capabilities necessary to sustain superior enterprise performance in an open economy with rapid innovation and globally dispersed sources of invention, innovation, and manufacturing capability. Dynamic capabilities enable business enterprises to create, deploy, and protect the intangible assets that support superior long‐ run business performance. The microfoundations of dynamic capabilities—the distinct skills, processes, procedures, organizational structures, decision rules, and disciplines—which undergird enterprise‐level sensing, seizing, and reconfiguring capacities are difficult to develop and deploy. Enterprises with strong dynamic capabilities are intensely entrepreneurial. They not only adapt to business ecosystems, but also shape them through innovation and through collaboration with other enterprises, entities, and institutions. The framework advanced can help scholars understand the foundations of long‐run enterprise success while helping managers delineate relevant strategic considerations and the priorities they must adopt to enhance enterprise performance and escape the zero profit tendency associated with operating in markets open to global competition. Copyright © 2007 John Wiley & Sons, Ltd.     

From channel integration to platform integration: Capabilities required in hospitality

Although channel integration is vital to manage multiple channels in harmony, most research focuses on direct and indirect channels. However, hotels increasingly engage with platforms – an interface bringing together a network of hotels and customers. Channels and platforms have distinct attributes – channels facilitate economies of scale, while platforms foster network effects, i.e., growing the number of hotels and customers for the benefit of both parties. Therefore, we question whether channel integration capabilities are relevant in platform contexts. Furthermore, because platforms have high market power which affects hotel profitability, research is required to explore the specialized platform integration capabilities for optimal hotel performance. Applying grounded theory, we identify five coordinating capabilities for hotels to align their operations with platforms and three learning capabilities for hotels to develop new knowledge to work with platforms. Our contribution is the explication of the similarities and differences between channel integration and platform integration: (i) one set of integration capabilities are similar across channels and platforms – they manifest similarly and serve similar objectives. However, in platform contexts (ii) some integration capabilities satisfy different objectives, (iii) some are wider in scope to achieve a broader set of objectives, and (iv) some are unique and attain new objectives.     

Managing strategic system-building networks in emerging business fields: A case study of the Dutch smart grid sector

Companies that wish to launch innovative sustainability technologies can collaborate in strategic networks of actors from industry, government and research institutes to pro-actively build a business ecosystem around their new technology. This is called collective system building. In this paper, we examine how to effectively manage networks for collective system building. Based on a review of the literature, we identify the key factors of effective network management and we propose a conceptual framework for network management at the network level. Subsequently, we conduct a multiple-case study in the Dutch smart grid sector to examine how these key factors are implemented by system-building networks. We find differences with the existing network management literature regarding network composition, network management structure, governance modes, decision-making processes, project management, the free-rider problem and trust-building mechanisms. Our study contributes to a better understanding of effective management of system-building networks, which in turn can lead to greater success in establishing new business fields. We contribute to the literature on strategic business networks, specifically on emerging business networks building new business fields.     

A network perspective on idea and innovation crowdsourcing in industrial firms

Crowdsourcing has been attracting the attention of both academics and practitioners over recent years. The aim of this article is to contribute to the current body of knowledge on innovation in networked contexts by systematically analyzing various crowdsourcing configurations available to industrial firms. We first develop a categorization of crowdsourcing in industrial firms comprising four distinct configurations: internal crowdsourcing; community crowdsourcing; open crowdsourcing; and crowdsourcing via a broker. We then proceed to draw from the literature on industry networks to further deepen our understanding of how these four distinct configurations can contribute to business and innovation activities of a focal industrial firm. Specifically, we focus on the structural properties, nature of collaboration, and governance of crowdsourcing networks. This novel combination of crowdsourcing and network research delivers new insights that enrich current understanding on various options available to industrial firms operating in networked contexts to facilitate their innovation processes.     

Supporting new product commercialization through managerial social ties and market knowledge development in an emerging economy

While it has been advocated that the generation and application of market knowledge shape marketing capabilities to commercialize new products, the weak institutional environment makes access to critical market knowledge challenging in emerging economies. Critically, managerial social ties with business and political institutions may complement the firm’s market orientation (MO) to obtain market knowledge that is not available in the open market in emerging economies. This study draws attention to the differential roles of business and political ties in complementing or inhibiting the effects of market orientation on exploratory and exploitative marketing capabilities in one of the “Next Eleven” emerging economies, Iran. The results help firms operating in emerging economies to identify the conditions under which business and political ties help to overcome institutional limitations, complement market-oriented efforts, and successfully commercialize new products.     

Role of quality management capabilities in developing market-based organisational learning capabilities: Case study evidence from four Indian business process outsourcing firms

Business-to-business marketing literature acknowledges the value firms, including business process outsourcing firms, realise through their supplier networks. Such value realisation is often possible through a dynamic exchange of complementary organisational capabilities between a firm and its network partners. However, little is known about how outsourcing firms develop these capabilities and thus realise value. This paper addresses an unexplored theoretical gap of developing market-based organisational learning capabilities in business process outsourcing firms. Using a capabilities lens, this study assesses the impact of quality management capabilities in developing market-based organisational learning capability. Findings from a case study of four business process outsourcing firms in India suggest that effective knowledge transfer, diffusion and the development of market-based organisational learning capabilities are contingent upon the strength of a firm's quality management capabilities. Implications for theory and practice are discussed.     

Network process analysis: An event-based approach to study business network dynamics

To develop business, managers need to understand the dynamic nature of the business networks in which their company operates. Qualitative process research offers a promising methodology to deliver that understanding but does not yet provide elaborate analysis methods applicable to business network research. We therefore introduce an event based analysis strategy developed to study processes in business networks. Employing a longitudinal case on a paper trader's internationalization process in a network context as an experimental arena, we propose three tools for process analysis. First, a research steering wheel that combines both retrospective and real time event analysis; second, an analytical scheme comprising influencing factors, critical events and consequent change; and third, an event trajectory that unfolds process patterns. The proposed strategy offers a viable alternative to social network analysis, network pictures and narrative analysis with which to study network change and dynamics. Elaborating events from a moderate constructivist perspective, it enables the researcher to trace and understand processes beyond mere structural change, and to capture their evolution in a multilayered network context. We evaluate the strengths and weaknesses of the methodology and discuss its relevance for research and practice.     

B2B SME management of antecedents to the application of social media

This paper elucidates how business-to-business (B2B) small and medium-sized enterprises (SMEs) can manage antecedents to the application of social media for potential contributions to their business. This in-depth qualitative research study was conducted at four plastic-producing SMEs from October 2013 to October 2014, with follow-up interviews in October 2015.The findings reveal two important antecedents to the application of social media that overcome the gap between acknowledging the usefulness of social media and its actual limited application in practical B2B contexts. First, open collaborative business model innovation is needed to apply social media in local business processes. Second, central and distributed leadership must be integrated to create ownership and responsibility across the SME organisation and beyond to customers and partners. These findings differ from the social media application stages and the gaps between them identified in the previous literature. The developed model makes a contribution to the B2B SME field and to academia by recognising the importance of integrating critical antecedents before social media application can enhance business in B2B SMEs. This understanding is beneficial for the B2B SMEs and for society.     

Dimensions of space in business network research

Interactive processes constitute a core notion in business exchange, leading to the concepts of relationships and networks. The constitution of process, comprising unfolding events, activities, and connected structures, relies on difference in space and time. While research has been devoted to time, the concept of space has thus far remained largely unexplored within business network research.This conceptual paper focuses on spatial dimensions for conducting research according to the IMP business network approach. Business actors create connected relationships and networks that exist and change as continuous emerging spatial structures and as mental maps in the managerial mindset. These relational network processes and structures are located, distributed and experienced in and across space. Drawing on economic geography and conceptual frameworks from the business network approach, we propose new dimensions and conceptualizations of space for the study of these networks. The paper delivers proposals to extend our current understanding of business networks as emerging and changing spatio-temporal entities with implications for theory development, research and practice.     

Tensions and ties in social media networks: Towards a model of understanding business relationship development and business performance enhancement through the use of LinkedIn

The era of social media networks has created significant opportunities for business relationship development yet there exists a paucity of research in this area. To address this, this paper identifies four key tensions within the current literature: relational versus transactional exchanges, emergent versus strategic social media network development, the pace of social media network formation versus the development of trust, and the notions of sharing and reciprocity versus competitive advantage. This study draws on the principles of netnography, incorporating data from 554 LinkedIn group interactions and 12 interviews with professionals in one global industry to provide insight into business relationship development stemming from one social media network. Significant contributions to theoretical and practical knowledge are made through the recognition of tensions in the literature, the application of the notion of Granovetter's ties to a contemporary context and the novel use of netnography. Furthermore, the resultant model conceptualises the use of social media networking in building networks and relationships which lead to new business and enhance business performance.     

Leveraging internal resources and external business networks for new product success: A dynamic capabilities perspective

Internal resources such as technological and human capital, together with a firm's business network, are vital sources of knowledge for new product development. Previous studies largely assume that a firm's internal resources and its external resources embedded in a business network are complementary in new product development. This study draws on the dynamic capabilities perspective to take the existing literature one step further. Our hypotheses were tested using a sample of 130 Chinese manufacturing firms in high-technology industries. Interestingly, the findings reveal a more complex picture of resource interplay between internal resources and external resources embedded in a firm's business network. More specifically, the findings show that a firm's power in its business network influences the effect of its internal resources on its ability to sense and seize opportunities, a vital dynamic capability. More importantly, the findings suggest that such dynamic capability plays a pivotal role in translating the benefits of resource-interplay into new product success.     

Business relationships in the industrial network literature: Three approaches and their underlying assumptions

The industrial network literature contains underlying assumptions about the nature of business relationships. We use change as a vehicle to unearth these assumptions and conduct a systematic review of change in business relationships in the industrial network literature. We identify three approaches to business relationships: agency, structure and practice. Our research contributes to the industrial network literature by explicating how change in business relationships is derived implicitly from what people do, the surrounding structures, or the logic underlying their action. This research helps provide construct clarity by elaborating the key assumptions and key constructs of the three approaches as well their implications for business relationships research.     

企业网络位置、间接联系与创新绩效

企业间合作创新的重要性已逐渐被学界和企业界所重视,为探讨企业在合作创新网络中的网络位置、间接联系对创新绩效的影响,本研究以深圳市IC产业为例应用社会网络分析方法和管理学相关理论进行实证分析。结果表明,占据网络中心和富含结构洞的网络位置有利于提升企业创新绩效;企业的间接联系也是提升创新绩效的重要因素;并且,间接联系对企业创新绩效的影响还依赖于企业的网络位置,位于网络中心的企业要比位于网络边缘的企业从间接联系中获得更少的创新收益,而拥有丰富结构洞的企业要比拥有较少结构洞的企业从间接联系中获得更多的创新收益。     

The impact of network configurations on value constellations in business markets — The case of an innovation network

A growing body of scholars are advocating a better understanding of how value is created in business networks, rather than merely in business relationships or at the level of single actors. Among such networks, innovation networks, i.e. the configurations of strategic entrepreneurial nets aimed at improving the effectiveness of innovation performance, have come under scrutiny in the business marketing literature. However, research that explicitly connects value considerations with innovation network configurations is still in its infancy, with empirical evidence being notably scarce. This study is aimed at identifying if and how network configurations affect value constellation aspects in business networks, in terms of value recipients and value outcomes. We interviewed key informants representing 46 high-technology entrepreneurial firms co-located in an innovation network (Daresbury Science and Technology Park — UK). Our study identifies that different network configurations can co-exist in the same overall network; these, nevertheless, are not alternative independent structures, but rather they interact with each other through actors spanning their boundaries. Our study thus provides an understanding of network configurations relating to specific value consequences, but also provides evidence relating to the interactions between different configurations. By doing this, we establish a bridge between a business marketing and a strategy perspective on value in networks. Important managerial implications and implications for policy makers also emerge from our study.     

A radical constructivist approach to boundaries in business network research

We contribute to the business network literature by presenting and introducing a radical constructivist research approach, in which we foreground sharing the context of an actor's understanding of interaction. We elaborate the approach by illuminating the problematic issue of boundaries in business network research. We conceptualize boundaries as inter-action spaces and times where differences are created, maintained and changed in a physical-social setting. We make a distinction between boundaries and borders, with the latter being simply representations. We undertake a review of select realist and social constructivist business network literature to distinguish and elaborate the potential of a radical constructivist perspective, as an alternative approach. The approach appears most useful when the researcher and interview participant do not have a convergent understanding of the research phenomenon. Further, a radical constructivist approach is eminently suitable for settings where inter-action conditions and content are changing, for example in times of crisis or network change. We present the metaphors of castles and frontiers, as illustrative research tools suitable for a radical constructivist study of boundaries in business networks.     

Network innovation versus innovation through networks

In today's dynamic, complex and interconnected environments, interfirm networks in its various forms (e.g. franchising, retail and service chains, cooperatives, financial networks, joint ventures, strategic alliances, clusters, public-private partnerships, digital platforms) are becoming increasingly important in helping firms improve their competitive position through an enhanced access to innovation, complementary resources and capabilities otherwise not available to them. Driven by increased performance pressures in unpredictable environments, firms embedded in networks are increasingly moving from cooperators to collaborators as value co-creators. The aim of this introductory article is to discuss the role of innovation in business networks by focusing on two major topics: Network innovation versus innovation through networks. In addition, we provide an overview of the articles included in the special issue on Networks and Innovation focusing on the questions: (1) what is the impact of network characteristics on a firm's innovation?; and (2) what are the determinants of innovation in interfirm networks?     

Complementarity versus substitutability of dynamic and operational capabilities in B2B firms: A configurational approach

Despite extensive research into dynamic and operational capabilities, understanding of their interplay is still scant. Both complementary and substitutive roles have been proposed in prior conceptual studies, but only limited systematic empirical investigations into the mutual interdependence of these capabilities have been conducted. Drawing on a sample of 219 Hungarian B2B firms, this study incorporates prior literature on dynamic and operational capabilities and employs a set-theoretical approach to examine whether the capabilities complement or substitute each other in producing high levels of business performance. While evidence for both types of interdependency is provided, the findings generally support the view that dynamic and operational capabilities are complementary rather than substitutive. The two types of capabilities also explain business performance better jointly than in isolation. Several effective capability configurations, associated with high business performance, are identified. The findings paint a detailed picture of the complex interplay between dynamic and operational capabilities, thereby contributing to academic and managerial audiences alike.     

开放平台与所有权平台的竞争:网络效应与策略选择

开放平台（标准）的出现给所有权平台带来很大冲击，也给经济学家提出了挑战．这种免费的资源提供的动机何在？它对创新活动有何影响？它会如何影响市场竞争的结果？本文提供了一个分析开放平台和所有权平台（双寡）竞争的理论模型，在考虑网络效应以及所有权平台拥有者的兼容策略选择等情形下。分析了不同平台的目标和均衡策略选择。在此基础上。我们还拓展分析了社会对不同产业结构（开放＋所有权VS所有权＋所有权）的选择激励．结果发现不同的参数设定会得到不同的结论。