Who is the better player? Off-field battle on Facebook and Twitter

Social media networks have become essential to the modern business world, and are especially vital for sports firms and athletes. Social media networks are new channels for firms to connect with their audience and establish a social customer relationship. For sports firms, athletes play a special role, as they are the firms’ ambassadors and the focus of virtual communities of fans. For most athletes, social media is a powerful tool to take advantage of their time in the spotlight. However, social media has much more potential. This work analyzes the social media profile and content created by six well-known sports figures—Cristiano Ronaldo, Lionel Messi, Tom Brady, Aaron Rodgers, LeBron James, and Kevin Durant—to develop a model (STAR) for social media use. The adoption of this model can enhance fan engagement online and therefore increase athletes’ and firms’ brand value and connectivity with consumers.     

Immigrant social networks and foreign entry: Australia and New Zealand firms in the European Union and Greater China

Based on social networking and ethnic networking theories, this paper presents a theoretical framework that hypothesizes the linkages between immigrant social networks and foreign market entry (FME) strategies for firms operating in the European Union (EU) and Greater China (GC) region. “Immigrant effect” (IE) is used as a proxy for immigrant social networks. IE refers to firms that are owned and/or hired immigrants in key decision-making positions to manage and/or market their products/services in the immigrant's country of origin (COO). The findings of this study reveal that immigrants do play a pivotal role in affecting the choice of FME mode into their respective COO in both EU and GC regions. As such, firms could employ a standardized IE–FME framework across the EU and GC regions. However, the antecedents for choosing an IE are different for both regions, thus suggesting that a different antecedent-IE framework for the EU and the GC regions. The results suggest that both standardized and adapted approaches should be considered when formulating the antecedent-IE–FME framework for the EU and GC regions. The findings of this study has theoretical implications for research pertaining to social network/ethnic network and FME, standardization/adaptation as well as practical implications for firms that seek to use IE in transacting business in the immigrant's COO.     

The Influence of Domestic Interfirm Networks on the Internationalization Process of Taiwanese SMEs

This study investigated how domestic interfirm networks contribute to a better understanding of the internationalization process of Taiwanese small and medium enterprises (SMEs) in the automobile and textiles sectors. The rapid growth of business networks in Taiwan's newly internationalizing firms provides an appropriate context in which to study the emergence and evolution of such networks. Findings from the in-depth case studies indicate that domestic interfirm networks are a major factor in the decision to internationalize. Furthermore, the benefits of assured orders in an unknown international market coupled with the availability of market information from other network partners can be a potential source of competitive advantage for the internationalized SME.     

Network view of MNCs' socio-political behavior

While business networks and relationships in international and industrial marketing studies are explored extensively, relationships between firms and socio-political actors are rarely been studied. This paper addresses this gap and examines how MNCs manage their relationship with socio-political organizations. The study builds from the proposition that business firms, besides their actions in business market, have to manage their socio-political market. The study aims to develop a theoretical view that is based in business networks and contains the three concepts of legitimacy, commitment and trust. The proposition is that business firms behave proactively towards the actors in the socio-political environment which is related to their business goals. The three conceptual elements will enable us to understand more deeply the varieties in the firms' managerial behavior. Two cases test the concept in the model — those of Daewoo Motor Company (a South Korean MNC) and the Swedish MNC, Vattenfall. The study will contribute towards deeper understanding of socio-political market and how firms manage their socio-political relationships. The conclusions describe the theoretical and managerial implications.     

The glue and the pieces: Entrepreneurship and innovation in small-firm networks

The entrepreneurial view of the firm stresses the need for a more insightful understanding of business leaders within sets of SMEs. Here, competitiveness emerges as a network-embedded capability and the coordination among firms, maximizing firm-specific competencies, represents a strategic leverage in accomplishing and maintaining a sustainable competitive advantage. When the goal is not only greater efficiency in terms of the lowest cost but innovation in terms of how to improve productive performance by changing the way in which it is undertaken, a critical issue becomes the entrepreneur's ability to create, manage, and recombine the set of relationships with external suppliers. The ability to glue external expertise and capabilities in an original and unique way is considered the key factor in pursuing innovative performance.As orchestrators of inter-firm linkages, entrepreneurs relying on personal networks and prior relationships are able to identify possible sources of knowledge. As coordinators of such innovative ties, they combine a wide set of diverse competencies not only to overcome size constraints through development cost reduction, but also to recoup ideas and creativity for the realization of more complex typologies of innovation. These elements reduce the level of uncertainty, while enhancing early cooperation between firms.Because the entrepreneur is supposed to be able to manage a higher number of “innovative poles”, which can be better managed thanks to trust and reputation developed in prior relationships, the different management topology could be associated with a different level of supplier contribution to the development of new products.This paper provides insights into the role of suppliers in the new product development process, and explores the role of the entrepreneur in promoting and managing a wide set of external, innovative ties. Attention is focused on 103 small- and medium- sized firms located within two Italian industrial networks where interdependencies are unusually large and complex.With respect to the first aim, the empirical analysis confirmed SME's structural recourse to suppliers. More important, the contribution of such resources is not necessarily limited to cost reductions and marginal improvements. Although incremental contributions certainly exist and are relevant, more complex relationships largely focused on joint design and development emerge as important patterns in buyer—supplier interaction.With respect to the second aim, an entrepreneurial explanation of SMEs' innovative performance is advanced. In a competitive environment where the actors are not atomistic, but exist within systems of actors, the relational capability could represent for entrepreneurial firms the way to gain a sustainable competitive advantage. We found entrepreneurs who, exploiting basic experiences, seek new combinations among the various inter-firm ties, relying upon such linkages as a vehicle for transferring and combining their organizationally embedded learning capability. Our findings showed that (1) when the entrepreneur is leading and managing the business, more suppliers are involved in the development of new products, and (2) the type of contribution given by suppliers differs by management typology. More precisely, the incremental type of contribution is dominant whenever professional management is present, while the relevance of architectural and radical topologies increase when the entrepreneur is present.On a broader level, the findings suggest further studies to address the question of how internally determined, rather than spontaneous, is the evolution toward a network structure in sets of SMEs similar to those studied. We showed that the number and the quality of inter-firm relationships cannot be explained merely by environment-specific factors.     

Social manufacturing: When the maker movement meets interfirm production networks

New business models harnessing the power of individuals have already revolutionized service industries and digital content production. In this study, we investigate whether a similar phenomenon is taking place in manufacturing industries. We start by conceptually defining two distinct forms of firm-individual collaboration in manufacturing industries: (1) social cloud manufacturing, in which firms outsource manufacturing to individuals, and (2) social platform manufacturing, in which firms provide manufacturing services to individuals. We then empirically investigate the nature of firm-individual collaboration within these forms, focusing on the role of individuals. We find that the individuals are often makers who view their participation primarily as a hobby and are driven mainly by nonmonetary benefits, that the design process often involves both parties, and that the two forms of collaboration exploit different enabling technologies. Our findings suggest that firms working with individuals can potentially reap multiple benefits, including fresh ideas, broader design support, and quick delivery times. This article contributes to an improved understanding of how firms can build potentially disruptive business models in manufacturing industries by leveraging individuals, thereby adding to the emerging stream of literature on social manufacturing.     

How virtual brand community traces may increase fan engagement in brand pages

Brand pages in social media are a great way to foster consumer gathering around a brand, but it can be challenging to keep fans engaged and coming back to see updated content. Brands with millions of fans on Facebook have seen organic reach fall below 2% of their base. In this article, we describe how the creation of virtual brand communities can help brand managers increase fan engagement. We suggest the steps, conditions, advantages, and limitations involved in nurturing a brand page as an online social gathering that assumes some of the characteristics of a virtual brand community. The results of our study show that a brand page can have some of the characteristics of a virtual brand community—topical information exchange, identity communication, and establishment and internalization of cultural norms. We also show the importance of having celebrities among fans in order to foster social interactions and legitimate social practices on brand pages.     

The dyadic structure of exchange partners' governing-agency social capital and opportunism in buyer–supplier relationships

Extant literature on opportunism examines its antecedents in dyadic relationships in business networks. With firms also developing relationships with government agencies, these connections can influence firms' propensity for opportunism in business exchanges. This study investigates how the governing-agency social capital on both sides of the buyer–supplier relationship affects firms' opportunism tendency toward their counterparts. In particular, we divide the governing-agency social capital of both parties into two dimensions: the asymmetry of governing-agency social capital and joint governing-agency social capital. We postulate that both the asymmetry of governing-agency social capital and joint governing-agency social capital promote the focal firm's propensity for opportunism through dyadic power and network power, respectively. Moreover, we propose that both dimensions interact to magnify each other's impact on the focal firm's propensity for opportunism. We test the hypotheses using 322 matched data of buyer–supplier dyads in China. Empirical results provide support for the research hypotheses.     

Responsible Marketing: Can Social Enterprises Show the Way?

In this article, the authors present a new perspective on responsible marketing. We discuss if and how social enterprises can present a new understanding of responsible marketing. Relevant publications (14 on social entrepreneurship, 40 on marketing in non-profit organizations and social enterprises and 41 papers on marketing) are selected and reviewed. The result of the literature analysis and synthesis show that social enterprises can gain from a more formal, systematic approach to marketing. Since social enterprises prioritize social goals over business results, successful adoption of marketing policies and practices can help then create a blueprint for responsible marketing. Marketing of socially relevant products and services by social enterprises thus create a new paradigm of responsible marketing. Such models can also be useful for larger corporations who look at social business and shared value creation as part of their business and marketing strategy.     

Tax haven networks and the role of the Big 4 accountancy firms

This paper investigates the association between the Big 4 accountancy firms and the extent to which multinational enterprises build, manage and maintain their networks of tax haven subsidiaries. We extend internalisation theory and derive a number of hypotheses that are tested using count models on firm-level data. Our key findings demonstrate that there is a strong correlation and causal link between the size of an MNE’s tax haven network and their use of the Big 4. We therefore argue that public policy related to the role of auditors can have a significant impact on the tax avoidance behaviour of MNEs.     

Align or perish: Social enterprise network orchestration in Sub-Saharan Africa

Previous research has shown that networks are vital for scaling the impact of social enterprises. However, at present, insight into how and why social enterprises successfully orchestrate networks over time as they scale, particularly in the Sub-Saharan African emerging economy context, is scant. Theoretically sensitized by social network theory, our inductive study of six Kenyan social enterprises analyzed their phase-contingent network orchestration. Our findings show how and why entrepreneurial contextual bridging and circumventing social liability are important for initial scaling, whereas aligned capacity building as well as aligning incentives with political actors become necessary to develop and navigate social business ecosystems. In sum, we contribute a deeper understanding of how and why agentic network actions help social entrepreneurs achieve success as they scale in an emerging economy context.     

Organizing for external technology exploitation in diversified firms

Besides applying technology in their own products, industrial firms increasingly exploit their technologies externally, for example through out-licensing. Earlier studies cannot explain the discrepancies between a few pioneering firms in active technology licensing and the managerial difficulties of many others. In diversified firms, diverging interests of the corporate and business unit level in the keep-or-sell decision constitute a central barrier to active licensing. Therefore, this article examines two essential dimensions of designing the corporate/business unit interface in diversified firms: the centralization of the activities on the corporate level and the alignment between the organizational levels. The study tests three hypotheses regarding the interaction and consequences of these organizational dimensions with data from 152 firms. Consistent with the hypotheses, the data provide support for the benefits from medium levels of corporate centralization and corporate/business unit alignment. The results have implications for technology exploitation, open innovation, markets for technology, and corporate strategy.     

Modeling Job Pursuit Intention: Moderating Mechanisms of Socio-Environmental Consciousness

Many scholars have suggested the relationship between corporate social performance and its ability to attract a large number of high-quality job applicants, because previous literature indicates that employees with strong social awareness help create a high-performance organization. For that reason, an important issue for successful business recruitment is how to boost the pursuit intention of job seekers. This study discusses such issue by proposing a model based on signaling theory and cognitive dissonance theory. In the proposed model of this study, the positive relationships between four dimensions of corporate social performance and job pursuit intention are hypothetically moderated by socio-environmental consciousness. The proposed hypotheses of this research were empirically tested using the data from graduating students seeking a job. The empirical findings of this study complement previous literature by discussing how corporate social performance benefits business firms from a perspective of strengthened human resources and recruitment. Finally, managerial implications for business managers based on the findings herein are provided.     

The effect of foreign partner network embeddedness on international joint venture failure: Evidence from European firms’ investments in emerging economies

Access to trusted information about potential local partners is a critical factor for international joint venture (IJV) stability and success in emerging economies. We build on social network theory and examine how foreign investors can benefit from their alliance networks in accessing reliable information on the availability, resources, and behavior of potential local IJV partners. More specifically, we examine positional embeddedness in networks and network density and how these factors help foreign firms mitigate behavioral uncertainty in IJVs and thus reduce the likelihood of failure. We use data on 349 IJVs formed by 132 European firms in emerging economies during the 1995–1997 period and event history analysis to test our hypotheses. Our findings indicate that having an alliance network is a necessary but insufficient condition to mitigate behavioral uncertainty of local partners. We find that only densely tied networks offer benefits of reliable information on potential local partners that ensure the longevity of IJVs and that a central position in an alliance network translates into lower IJV failure.     

The effect of network competence and environmental hostility on the internationalization of SMEs

Research findings suggest that networks offer small and medium-sized enterprises (SMEs) opportunities to internationalize successfully. However, the role of internal organizational competence in the process of developing and maintaining such networks in hostile external environments has received little attention. The aim of this study is to shed light on the relationship by examining the positive influence that the network competence of SMEs has on their propensity to internationalize, and on their subsequent international performance. Given that the willingness of firms to enter and perform well in markets appears to also depend on environmental hostilities, this external influence on SME internationalization is incorporated into the study. We also examine whether the level of environmental hostility moderates the relationship between network competence and SME internationalization. The empirical part of the study comprises a web survey of 298 Finnish SMEs representing five different industry sectors: metal, food, furniture, software, and knowledge-intensive business services. Confirmatory factor analysis and regression models are used in the analysis. The results indicate that higher levels of network competence are positively related to the propensity of SMEs to internationalize, as well as to their international performance. Conversely, the level of environmental hostility has a negative effect on the performance measure, but not on the internationalization propensity. Additionally, the influence of network competence is not moderated by environmental hostility. The results indicate that internal network competence and external environmental hostility play a role in SME internationalization, and that the positive influence of network competence exists independently of the hostility in the environment.     

Towards a framework for innovation in retailing through social media

Retail firms are increasingly using social media for purposes other than traditional marketing, such as innovation. Yet, while the innovation literature has established the benefits of involving customers in the development of products/services through open innovation, the role of social media in innovation is not well understood. Accordingly, we investigate how social media drives innovation in retail businesses. Using data from 414 firms, we find that social media positively relates to radical and incremental innovation, mediated by multiple digital channels and moderated by digital capabilities. Consequently, we propose a social media dynamic capabilities framework to guide future research and innovation in retail business.     

Cloud computing capability: its technological root and business impact

Cloud computing can help organizations create business value for long-term viability and sustainability by providing flexibility and versatility. We report a systematic analysis of the central role of cloud computing capability in bridging the information technology (IT) features of cloud computing and its business value. We posit that the IT features of cloud computing lead to measureable increase in business value on both dimensions of performance benefit and collaboration benefit through cloud computing capability. Survey data collected from 174 firms largely support our hypotheses. This study offers fine-grained insights into the mechanisms of how the IT features of cloud computing influence the business value stemming from cloud computing. Firms should focus more on cultivating organizational capabilities to effectively deploy cloud computing in order to harvest the benefits promised by cloud computing.     

Do Firms Spend More on Suppliers That Have Environmental Expertise? An Empirical Study of U.S. Manufacturers’ Procurement Spend

Stakeholders expect focal firms to improve their environmental performance. While firms may be able to accumulate the environmental expertise needed to achieve this goal internally, doing so may require significant time and resource commitments. Alternatively, buyer firms can leverage their suppliers’ existing environmental expertise and gain access to such expertise when they purchase products and services from these suppliers. The purpose of this study was to develop and test theory regarding under what conditions suppliers’ environmental expertise influences a buying firms’ procurement spend with these suppliers. We ground our study in transaction cost economics and agency theories and empirically test our hypotheses using a unique buyer–supplier dyadic data set. We find that buyer firms are willing to increase their overall business spend with suppliers that have strong environmental expertise, particularly when the buyer firms are more profitable and have higher levels of absorptive capacity. However, we find the opposite effect when the buyer firm’s executive compensation is linked to the firm’s environmental, social, and governance (ESG) performance. Likewise, we also find that the buyer firm’s environmental concern ratings negatively moderate the relationship between the supplier’s environmental expertise and the buyer’s procurement spend with the supplier.     

The Effects of Learning on Relationship Value in a Business Network Context

ABSTRACT

In today's intense global competition, a firm's ability to learn from its networks of business relationships is an important source of sustainable competitive advantage. Learning in a network of relationships involves a constellation of resource linkages among business partners tied together by interconnected resources. This has the potential of increasing the relationship value of a firm in terms of knowledge created through interactions among firms in the business network. Prior research has not yet examined the effects of learning in and through relationships in a business network context. Interdependence of firms in business networks gives rise to learning effects of adaptation and coordination that can have implications for relationship value. An empirical study of 215 business relationships from a network of nine high-technology companies in the United Kingdom shows that learning in and through relationships as a result of interactions and resource interdependencies in networks of relationships has a positive effect on a firm's relationship value. Furthermore, an understanding of the network context through interactions among firms facilitates learning and development of the firm's learning capabilities that enhance relationship value.