Globalisation and connectedness: A network approach to international business

There have been recent calls for the field of International Business to retool its routines by becoming genuinely interdisciplinary. This paper takes such an approach by using recent advances in the fields of evolutionary economics and applying them to IB. Evolutionary economists are now viewing the economy as an actual network. Consequently, one the key analytical tools in this approach is network analysis. Some of the basic methods in network analysis are reviewed. The paper then looks at how using these tools might be of use in IB studies. In particular, it outlines fruitful research paths in the areas of globalisation and regionalisation, and the measurement of performance in multi-national firms and alliances. In each case, propositions are put forward which can be analytically tested with the use of network analysis. The paper concludes with a brief outline of a research agenda which utilises this approach in International Business studies.

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.

Competence–Based Support of Interaction between Business Network Members

In a complicated business network finding a supplier can be a very time consuming task. The technology of competence management is aimed to support such kind of tasks. The paper presents an approach to support interaction between business network members based on such technologies as competence management and knowledge management. The conceptual models of the context-driven competence management system and production network member competence profile are described. The usage of the competence management system is illustrated via an example from automotive industry.

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.

Hálózat – A globális gazdaság kvázi szervezete (The business network – the quasi organization of the global economy)

A tanulmány célja, hogy értelmezze a globális gazdaság alapvető fontosságú építőelemét, az üzleti hálózatot, majd megvizsgálja annak felépítését és működésének főbb vezérlőelveit. Először az alapfogalmak – üzleti hálózat, ellátási lánc és ellátási háló – meghatározására és azok felépítésének bemutatására kerül sor. Ezt követően a cikk röviden ismerteti, hogy melyek voltak azok a vállalati gazdálkodás környezetében végbement változások, melyek a gazdaság hálózatosodását elősegítették és ennek kapcsán elvezettek az üzleti hálózatok versenyképességben játszott szerepének erősödéséhez. A szerző ugyanakkor bemutatja a kialakuló új gazdasági modell, az ún. hálózati gazdaság működési modelljének lényeges új tulajdonságait. A tanulmány ezután ismerteti az üzleti hálózat – s ezen belül az ellátási lánc – működtetésében meghatározó koordinációs mechanizmusokban megfigyelhető markáns változásokat. Végül részletesen ismerteti az üzleti hálózat két fő építőelemét: a hálózatot alkotó üzleti egységeknek, illetve a közöttük kialakuló kapcsolatoknak az alapvető típusait. ________ The aim of the paper is to present and interpret the basic building element of global business: the business network, its structure and operation. First basic terms – network, supply chain, supply network – are defined and described, than those changes are introduced that played significant role in increasing their importance. Characteristics of the new network economy are presented; especially changes in the coordination mechanism between cooperating parties in the network are demonstrated. Finally the two building blocks of global business networks: (i) nodes (business units) and (ii) threads (partnerships) are described in details.

The network structure of Hungarian business clusters

This article investigates the attitudes to inter-firm co-operation in Hungary by analysing a special group of business networks: the business clusters. Following an overview of cluster policy, a wide range of selfproclaimed business clusters are identified. A small elite of these business networks evolves into successful, sustainable innovative business clusters. However, in the majority of cases, these consortia of interfirm co-operation are not based on a mutually satisfactory model, and as a consequence, many clusters do not survive in the longer term. The paper uses the concepts and models of social network theory in order to explain, why and under what circumstances inter-firm co-operation in clusters enhances the competitiveness of the network as a whole, or alternatively, under what circumstances the cluster remains dependent on Government subsidies. The empirical basis of the study is a thorough internet research about the Hungarian cluster movement; a questionnaire based expert survey among managers of clusters and member companies and a set of in-depth interviews among managers of self-proclaimed clusters. The last chapter analyises the applicability of social network theory in the analysis of business networks and a model involving the value chain is recommended.

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.

The economies within an online social network market : A case study of Ravelry

The capacity of the internet to handle micro-transactions and to cater to niche markets is a boon for some areas of the creative industries, which have always been associated with smallscale micro business activities. This paper looks at the specific case of the specialist Social Networking Site Ravelry: a site for knitters, crocheters, spinners and dyers. It traces the interactions between amateurs and professionals through the emergence of social networking sites. An analytic framework of social network markets (see Potts, Cunningham, Hartley and Omerod, 2008) is employed to allow for the inclusion of amateur, social, semi-professional,professional and institutional actors within a networked sphere of activity, rather than excluding some of these actors as outside of recognised value-production. The reliance on social networks to determine the economic success of design, production and consumption is exemplified in this small scale example. This paper eschews the dichotomy of commercial and non-commercial by bringing to the fore the hybridity of this site where financial and social economies co-exist.