Developing a framework to evaluate business networks:the case of Ireland's industry-led network initiative

Business networks have been described as cooperative arrangements between independent business organisations that vary from contractual joint ventures to informal exchanges of information. This collaboration has become recognised as an innovative and efficient tool for organising interdependent activities, with benefits accruing to both firms and the local economy. For a number of years, resources have been devoted to supporting Irish networking policies. One recent example of such support is the Irish government's target of €20 million per annum for five years to support the creation of enterprise-led networks. It is imperative that a clear rationale for such interventions is established, as the opportunity cost of public funds is high. This article, therefore, develops an evaluation framework for such networking interventions. This framework will facilitate effective programme planning, implementation and evaluation. It will potentially show how a chain of cause-and-effect at both micro and macro-levels for networking interventions can be established.

Exploring clusters and their value as types of business networks in the agricultural sector

The undisputed link of the agricultural sector with regional economies, along with the increased competition, fosters agri-business companies to rethink their business philosophy and to transform from isolated firms to members of more extended business formations. The paper examines a particular type of business network, the cluster. It focuses on the concept of clusters and on cluster-based strategies in the context of agriculture. In particular, the paper explores the value of clusters by taking into consideration the particularities of the agricultural sector. Potential benefits and constraints of agri-business cluster development are also presented.

A hálózati pozíció és a versenyképesség kapcsolata (Business networks: network position and competitiveness in Hungary)

A cikk fókuszában az üzleti hálózatok állnak. Az IMP-csoport (Industrial Marketing and Purchasing Group) üzleti kapcsolatokkal, üzleti hálózatokkal foglalkozó több évtizedes kutatási eredményeire és fogalomrendszerére építve a szerzők áttekintik a téma alapvető megközelítéseit, majd a Versenyképesség-kutatás 2009. évi felmérésének adatait Felhasználva, megvizsgálják a vállalatvezetők által észlelt hálózati pozíció és a versenyképesség összefüggéseit. A vállalatvezetők értékelése szerint elemzik az iparági hálózatukban központi szerepet játszó, befolyással bíró (domináns hálózati pozícióval rendelkező) vállalatokat, különös tekintettel az üzleti teljesítmény és a versenyképesség jellemzőire. / === / The paper analyses the business network position of Hungarian companies, based on data of the Competitiveness research program. After an overview of the theoretical background of business relationships, business networks and network position – based on the IMP (Industrial Marketing and Purchasing Group) approach, the authors analyse the performance and competitiveness characteristics of firms with central position in their industrial network.

Üzleti hálózatok – Hálózati pozíció és versenyképesség = Business networks: network position and competitiveness in Hungary

Tanulmányunk fókuszában az üzleti hálózatok állnak. Az IMP csoport (Industrial Marketing and Purchasing Group) üzleti kapcsolatokkal, üzleti hálózatokkal foglalkozó több évtizedes kutatási eredményeire és fogalomrendszerére alapozva áttekintjük a téma alapmegközelítéseit, majd a Versenyképesség-kutatás 2009. évei felmérése adatainak felhasználásával vizsgáljuk a hálózati kép és a versenyképesség összefüggéseit. Jellemezzük a vállaltvezetők értékelése szerint az iparági hálózatukban központi szerepet játszó, befolyással bíró (domináns hálózati pozícióval rendelkező) vállalatokat, különös tekintettel az üzleti teljesítmény és versenyképesség jellemzőire. ________ The paper analyses the business network position of Hungarian companies, based on data of the Competitiveness research program. After an overview of the theoretical background of business relationships, business networks and network position – based on the IMP (Industrial Marketing and Purchasing Group) approach, we analyse the performance and competitiveness characteristics of firms with central position in their industrial network.

Forces of agglomeration and dispersal in rural business networks: a social network analysis

Two concepts in rural economic development policy have been the focus of much research and policy action: the identification and support of clusters or networks of firms and the availability and adoption by rural businesses of Information and Communication Technologies (ICT). From a theoretical viewpoint these policies are based on two contrasting models, with clustering seen as a process of economic agglomeration, and ICT-mediated communication as a means of facilitating economic dispersion. The study’s conceptual framework is based on four interrelated elements: location, interaction, knowledge, and advantage, together with the concept of networks which is employed as an operationally and theoretically unifying concept. The research questions are developed in four successive categories: Policy, Theory, Networks, and Method. The questions are approached using a study of two contrasting groups of rural small businesses in West Cork, Ireland: (a) Speciality Foods, and (b) firms in Digital Products and Services. The study combines Social Network Analysis (SNA) with Qualitative Thematic Analysis, using data collected from semi-structured interviews with 58 owners or managers of these businesses. Data comprise relational network data on the firms’ connections to suppliers, customers, allies and competitors, together with linked qualitative data on how the firms established connections, and how tacit and codified knowledge was sourced and utilised. The research finds that the key characteristics identified in the cluster literature are evident in the sample of Speciality Food businesses, in relation to flows of tacit knowledge, social embedding, and the development of forms of social capital. In particular the research identified the presence of two distinct forms of collective social capital in this network, termed “community” and “reputation”. By contrast the sample of Digital Products and Services businesses does not have the form of a cluster, but matches more closely to dispersive models, or “chain” structures. Much of the economic and social structure of this set of firms is best explained in terms of “project organisation”, and by the operation of an individual rather than collective form of “reputation”. The rural setting in which these firms are located has resulted in their being service-centric, and consequently they rely on ICT-mediated communication in order to exchange tacit knowledge “at a distance”. It is this factor, rather than inputs of codified knowledge, that most strongly influences their operation and their need for availability and adoption of high quality communication technologies. Thus the findings have applicability in relation to theory in Economic Geography and to policy and practice in Rural Development. In addition the research contributes to methodological questions in SNA, and to methodological questions about the combination or mixing of quantitative and qualitative methods.

BUSINESS NETWORKS IN E-COMMERCE INTERNATIONALIZATION –Two Finnish Companies Targeting Russia

With the proliferation of Internet, online shopping has become an increasingly essential part of global economy and thus, increasingly important field of research. While the internationalization process of a company has for long been in the focus of academic research, internationalization of e-commerce is a much newer field of study. The earlier empirical research has amply pointed out the difficulties of traditional internationalization models to explain the internationalization process of e-commerce companies. Conversely, business networks have been argued to play a major role in the e-commerce internationalization. The purpose of this study is to study how business networks influence the internationalization process of e-commerce companies. Conducted as a case study, this research studies the internationalization process of two Finnish e-commerce companies, Hong Kong and Hifi Studio, into possibly one of the most booming online markets - Russia. The empirical findings of the study concur with the earlier literature. The observed internationalization process differs from the assumptions of traditional international business models, and business networks are found influential for the process. However, the behavior of the two studied organizations is observed more independent than the network view to internationalization presumes. The trigger to internationalize rises from within the organizations and market potential is the primary explanation for selection of target markets. No network relationships were found to have an effect on foreign market selection, nor selection of mode of operations. This study indicates that exploring foreign markets is actually about investing in specific relationships within a business network, rather than overcoming economic, institutional, and cultural barriers. Companies utilize a wide array of relationships in their internationalization process and may effectively overcome disadvantages of operating in a foreign market by adopting partnerships with correct partners. However, building and maintaining operational business relationships is a demanding process, and organizations should prefer quality over quantity in their partner selection. Moreover, relationships where the focal party possess significant influence and leverage over other actor should be favored. Lastly, relationships need to be continuously evaluated and assessed in comparison with strategic business goals. Ultimately, e-commerce can be considered a new, low-risk, cost-effective, and relationship-oriented internationalization method, suitable especially in volatile market conditions as Russia today. This revolutionary new mode of international business activity calls for more profound focus of business managers and academia alike, as its weight on global trade continues to grow.

Managing wireless networks in the healthcare sector:emerging experiences of cultural impacts

The existing body of knowledge has generally supported that organizational culture plays a significant role in shaping group identity, work pattern, communication schemes, and interpersonal relations; all of these cultural elements are important organizational factors that shape workplaces and operational routines. In the context of emerging information technology, it has also been suggested that organizational culture could affect IT implementation and management. However, little is known about how emerging information technology shapes organizational culture, which in turn helps reshape the organization as a whole. The purpose of this paper is thus to build empirical understanding of how IT in general and emerging wireless networks in particular reshapes organizational culture. Case studies conducted in two hospitals situated in southwest U.S.A. illustrated that the implementation of wireless networks indeed helped shape and/or reshape organizational culture in the healthcare sector and in turn enhance healthcare organizations’ competitiveness in the marketplace. For IT managers and practitioners in healthcare institutions, effective strategy to plan and manage emerging ITs such as wireless networks will thus have long-term implications on cultivating organizational culture that could eventually reshape workplace and competitiveness.

The roles and importance of formal and informal sources of business support in young firms : evidence from the UK’s 2008 Federation of Small Business Survey

Objectives This research explores the relationship between young firms, their growth orientation-intention and a range of relationships which can be seen to provide business support. Prior-work Research indicates that networks impact the firm’s ability to secure resources (Sirmon and Hitt 2003; Liao and Welsch. 2004; Hanlon and Saunders 2007). Networks have been evaluated in a number of ways ranging from simple counts to characteristics of their composition (Davidsson and Honig 2003), strength of relationships (Granovetter 1973) and network diversity (Carter et al 2003). By providing access to resources and knowledge (from start-up assistance and raising capital, (e.g. Smallbone et al, 2003), networks may assist in enabling continued persistence during those times where firms may experience resource constraints owing to firm growth (Baker and Nelson 2005). Approach The data used in this research was generated in the 2008 UK Federation of Small Businesses (FSB) survey. Over 1,000 of the firms responding were found to fall into the category of “young”, ((defined as firms under 4 years old). Firms were considered the unit of analysis with the entrepreneur being the chief spokesperson for the firm. Preliminary data analysis considered key demographic characteristics and industry classifications, comparing the FSB data with that of the UK government’s own (BERR) Small Business Surveys of 2007 and 2008, to establish some degree of representativeness of the respondents. The analysis then examined networks with varying potential ability to provide support for young firms, the networks measured in terms of number, diversity, characteristic and strength in its relationship to young firm growth orientation. The diversity of business-support-related relationships ranged from friends and family, through professional services, customers and suppliers, and government business services, to trade associations and informal business networks. The characteristics of these formal and informal sources of support for new businesses are examined across a range of business support-type activities for new firms. The number of relationships and types of business support are also explored. Finally, the strength of these relationships is examined by analysis of the source of business support, type of business support, and links to the growth orientation-intention of the firm, after controlling for a number of key variables related to firm and industry status and owner characteristics. Results Preliminary analysis of the data by means of univariate analysis showed that average number of sources of advice was around 2.5 (from a potential total of 6). In terms of the diversity of relationships, universities had by far the smallest percentage of firms receiving beneficial advice from them. Government business services were beneficially used by 40% of young firms, the other relationship types being around the 50-55% mark. In terms of characteristics of the advice, the average number of areas in which benefit was achieved was around 5.5 of a maximum of 15. Start-up advice has by far the highest percentage of firms obtaining beneficial advice, with increasing sales, improving contacts and improving confidence being the other categories at or around the 50% mark. Other market-focused areas where benefits were also received were in the areas of new markets, existing product improvements and new product improvements, where around 40% of the young responding firms obtained benefit. Regression techniques evaluating the strength of these relationships in terms of the links between business support (by source of support, type of support, and range of support) and firm growth orientation-intention focus highlighted a number of significant relationships, even after controlling for a range of other explanatory variables identified in the literature. Specifically, there was found to be a positive relationship between receiving business advice generally (regardless of type or source) and growth orientation. This relationship was seen to be stronger, however, when looking at the number of types of beneficial advice received, and stronger again for the number of sources of this advice. In terms of individual sources of advice, customers and suppliers had the strongest relationship with growth, with Government business services also found to be significant. Combining these two sources was also seen to increase the strength of the relationship between these two sources of advice and growth orientation. In considering areas of support, growth was most strongly positively related to advice that benefited the development of new products and services, and also business confidence, but was negatively related to advice linked to business recovery. Finally, amalgamating the 4 key types and sources of advice to examine the impact of combinations of these types and sources of advice also improved the strength of the relationship. Implications The findings will assist in the understanding of young firms in general and growth more specifically, particularly the role and importance of specific sources, types and combinations of business support used more extensively by new young growth-oriented firms. Value This research may assist in processes designed to allow entrepreneurs to make better decisions; educators and support organizations to develop better advice and assistance, and Governments design better conditions for the creation of new growth-oriented businesses.

Service delivery framework : an architectural strategy for next-generation service delivery in business network

The next-generation of service-oriented architecture (SOA) needs to scale for flexible service consumption, beyond organizational and application boundaries, into communities, ecosystems and business networks. In wider and, ultimately, global settings, new capabilities are needed so that business partners can efficiently and reliably enable, adapt and expose services. Those services can then be discovered, ordered, consumed, metered and paid for, through new applications and opportunities, driven by third-parties in the global “village”. This trend is already underway, in different ways, through different early adopter market segments. This paper proposes an architectural strategy for the provisioning and delivery of services in communities, ecosystems and business networks – a Service Delivery Framework (SDF). The SDF is intended to support multiple industries and deployments where a SOA platform is needed for collaborating partners and diverse consumers. Specifically, it is envisaged that the SDF allows providers to publish their services into network directories so that they can be repurposed, traded and consumed, and leveraging network utilities like B2B gateways and cloud hosting. To support these different facets of service delivery, the SDF extends the conventional service provider, service broker and service consumer of the Web Services Architecture to include service gateway, service hoster, service aggregator and service channel maker.

Professional development using informal learning networks : an empirical study in Australia’s digital content industry

Informal learning networks play a key role in the skill and professional development of professionals working in micro-businesses within Australia’s digital content industry as they do not necessarily have access to a learning and development or a human resources section that can assist in mapping their learning pathway. Professionals working in this environment would typically adopt an informal learning approach to their skill and professional development by utilising their social and business networks. The overall aim of this PhD research project is to study how these professionals manage their skill and professional development, and to explore what role informal learning networks play in this professional learning context. This paper will describe the theme of the research project and how it fits with previous research and other relevant studies. Secondly, it will present the study’s research focus, and the research questions. It will also present relevant theories and perspectives, and the methods for empirical data collection. Data collection will be through three distinct phases using a mixed methods research design: an online survey, interviews, and case studies. It should be noted the findings presented in this paper offer some early results of the research project.

Conflicts when Competitors Cooperate: Exploring Elements of Conflicts from a Business Network Perspective

Most of the existing research within the business network approach is based on companies that are operating on different levels within the same value chain, as a buyer and a supplier. Intercompetitor cooperation, i.e. cooperation between companies occupying the same level within different value chains, has not been studied to the same extent. Moreover scholars within the business network approach have usually described industrial relationships as long term, consisting of mutual commitment and trust. Industrial relationships are not static, but dynamic, and they contain situations of both harmony and conflict. There is consequently a need for more research both concerning intercompetitor cooperation and conflicts. The purpose of this study is to develop our theoretical and empirical understanding of the nature of conflicts in intercompetitor cooperation from a business network perspective. The focus of the study lies on issue and intensity of conflict. The issue of a conflict can be divided into cause and topic, while the intensity comprises the importance and outcome of a conflict. The empirical part of the study is based on two case studies of groups of cooperating competitors from two different industries. The applied research method is interviews. According to the findings of this study causes of conflicts in intercompetitor cooperation can be divided into three groups: focus, awareness and capacity. Topics of conflict can be related to domain, delivery, advertising or cooperation. Moreover the findings show that conflict situations may be grouped into not important, important or very important. Some conflicts may also be of varying importance, meaning that the importance varies from one point of time to another. Based on the findings of the study the outcome or status of a conflict can be analyzed both on a concrete and general level. The findings also indicate that several conflicts are partly hidden, which means that only one or some of the involved actors perceive the conflict. Furthermore several conflict situations can be related to external network actors.

Adaptation in a Business Network Cooperation Context (summary section only)

In today’s business one can say that competition does not take place inside the network, but between networks. Change and dynamics are central issues in network studies, and a company, due its changing environment, can identify opportunities and threats and respond to them accordingly. These opportunities are vital, but also complex and demanding for the management. Earlier research has identified a shortcoming in explanations of how the micro-level interactions to macro-level patterns are connected. The IMP-group has been trying to fill this research gap with research on interactions within business networks. In this area of research lies the focus of research on relationships between organizations. Adaptation in cooperation is a central concept within business network research. Adaptation has been dealt with in previous literature, but the focus of the studies has mainly been outside this phenomenon, and it has mostly had a supporting role. Most literature has also described the buyers' point of view in studied supply networks, whereas much less attention has been paid to the suppliers' view on them. This study focuses on this research gap. The results of the study stress that adaptation should be included to a greater extent in the strategy work of companies. The adaptations should be carefully planned and, as far as possible, made consciously. Conscious, well-planned adaptations can be seen as investments into present and future relationships, and resources should be invested into something that does not increase the company’s dependence, but divides the power in the relationship between the companies. Adaptations should be planned so that they result in a more offensive way of responding to the demands that are placed upon the companies. In this way, the actions can be viewed and analyzed in accordance with whether the actions make the company weaker or stronger.

Managing Project Business Development: an Inter-Organizational and Intra-Organizational Perspective (summary section only)

The driving force behind this study is the gap between the reality of the firms engaged in project business and the available studies covering project management and business process development. Previous studies show that project-based organizations were ‘immature’ in terms of the project-management ‘maturity model’, as few firms were found to be optimizing processes. Even within those, very little attention was paid to combine inter-organizational and intra-organizational perspectives. In this study an effort is made to elaborate some thoughts and views on project management, which interrelate firms’ external and internal activities. In line with the integration, the dissertation uses an approach to the management of project-business interdependencies in the networks of actors, activities and resources. Firstly, the study develops an understanding for inter-organizational perspectives by exploring the complementarities of process activities in the basic development of project business. It presents a framework that is elaborated on the basis of the reciprocal interactions of activities within and outside the organization—thus providing a coherent basis for continuous business-process improvement. In addition, the study presents new tools that can be used to develop project-business processes in each of its functional areas. The research demonstrates how project-business activities can be optimized using the right resources at the right time with the right actors and the right actions. The selected five articles included in this dissertation explain the basic framework for the development of project business. Each paper covers various aspects of inter-organizational and intra-organizational perspectives for project management. The study develops a valuable and procedural model for business-process improvement using the Delphi method that can be used not only in academia but also as a guide for practitioners that takes them through a series of well-defined steps when making informed, consistent and efficient changes to their business processes.

Inscribing value on business model innovations: Insights from industrial projects commercializing disruptive digital innovations

In this paper we seek to show how marketing activities inscribe value on business model innovation, representative of an act, or sequence of socially interconnecting acts. Theoretically we ask two interlinked questions: (1) how can value inscriptions contribute to business model innovations? (2) how can marketing activities support the inscription of value on business model innovations? Semi-structured in-depth interviews were conducted with the thirty-seven members from across four industrial projects commercializing disruptive digital innovations. Various individuals from a diverse range of firms are shown to cast relevant components of their agency and knowledge on business model innovations through negotiation as an ongoing social process. Value inscription is mutually constituted from the marketing activities, interactions and negotiations of multiple project members across firms and functions to counter destabilizing forces and tensions arising from the commercialization of disruptive digital innovations. This contributes to recent conceptual thinking in the industrial marketing literature, which views business models as situated within dynamic business networks and a context-led evolutionary process. A contribution is also made to debate in the marketing literature around marketing's boundary-spanning role, with marketing activities shown to span and navigate across functions and firms in supporting value inscriptions on business model innovations.

Capacidades dinámicas que influyen en la operación de la Red de Turismo de La Candelaria

El desarrollo de la presente investigación, centra su atención en las capacidades dinámicas que influyen en la operación de la Red de Turismo de La Candelaria de Bogotá. Para este fin, se realizó una encuesta a 100 directivos o dueños de las empresas que conforman dicha red, y que es una muestra significativa para los propósitos de la investigación, puesto que permite describir a nivel de la empresa y a nivel de la red, la influencia de las capacidades dinámicas de absorción, adaptación e innovación. Como resultados, se obtuvieron que al nivel de empresas las tres capacidades dinámicas influyen en la operación de la misma, encontrándose una mayor relación entre las capacidades de “Innovación – Adaptación"; a nivel de red empresarial ocurre lo contrario, puesto que la relación de las capacidades dinámicas de “Innovación – Adaptación” es nula, mientras que las relaciones entre “Absorción – Innovación” y “Absorción – Adaptación” poseen una alta relación para la operación de la red. Lo anterior, se deriva del análisis realizado de los datos tabulados de la encuesta aplicada a las empresas de la red de turismo, con los estudios empíricos hallados que proponen escalas de medición para las capacidades dinámicas de absorción, adaptación e innovación, y el marco teórico elaborado como soporte para la presente investigación.