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Network capability, innovativeness, and performance: a multidimensional extension for entrepreneurship

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  • Vinit Parida
  • Ossi Pesämaa
  • Joakim Wincent
  • Mats Westerberg

Abstract

Small- and start-up firms in the high-tech industry usually engage in networking to overcome resource, knowledge, and competence constraints in creative, innovation-based competition. Quite often, however, network relationships fail due to lack of network capability (NC), defined as the ability to manage and gain benefits from external relationships. In the present study, we propose and examine an updated five-dimension NC construct and test its effect on innovativeness and performance. Two independent high-tech samples of small firms and start-ups support measurement properties of the proposed NC construct and suggest that the often-overlooked dimension in NC research of network relationship building is important to include in a complete NC construct. Doing so can help explain organizational innovativeness and effects on the customer, sales, and innovation performance more effectively. As a result, we find support for the proposed NC scale and the importance of network capabilities for small companies and start-ups to remain competitive.

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  • Vinit Parida & Ossi Pesämaa & Joakim Wincent & Mats Westerberg, 2017. "Network capability, innovativeness, and performance: a multidimensional extension for entrepreneurship," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 29(1-2), pages 94-115, January.
    • Handle: RePEc:taf:entreg:v:29:y:2017:i:1-2:p:94-115
    DOI: 10.1080/08985626.2016.1255434
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    3. Junghyun Yoon & Ki Keun Kim & Alisher Tohirovich Dedahanov, 2018. "The Role of International Entrepreneurial Orientation in Successful Internationalization from the Network Capability Perspective," Sustainability, MDPI, vol. 10(6), pages 1-14, May.
    4. Marchiori, Danilo Magno & Rodrigues, Ricardo Gouveia & Popadiuk, Silvio & Mainardes, Emerson Wagner, 2022. "The relationship between human capital, information technology capability, innovativeness and organizational performance: An integrated approach," Technological Forecasting and Social Change, Elsevier, vol. 177(C).
    5. Uzhegova, Maria & Torkkeli, Lasse & Saarenketo, Sami, 2019. "Corporate Social Responsibility in SMEs: Implications on Competitive PerformanceDate submitted: October 12, 2017Revised version accepted after double blind review: December 15, 2018," management revue - Socio-Economic Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 30(2-3), pages 232-267.
    6. Kim, Jungsuk & Castillejos-Petalcorin, Cynthia & Jinjarak, Yothin & Park, Donghyun & Quising, Pilipinas & Tian, Shu, 2022. "Entrepreneurship and Economic Growth: A Cross-Sectional Analysis Perspective," ADB Economics Working Paper Series 672, Asian Development Bank.
    7. Weili Yin & Wenxue Ran, 2021. "Theoretical Exploration of Supply Chain Viability Utilizing Blockchain Technology," Sustainability, MDPI, vol. 13(15), pages 1-25, July.
    8. Zahid Yousaf & Daniela Mihai & Umair Tanveer & Mădălina Brutu & Smaranda Toma & Sheikh Muhammad Zahid, 2022. "Organizational Innovativeness in the Circular Economy: The Interplay of Innovation Networks, Frugal Innovation, and Organizational Readiness," Sustainability, MDPI, vol. 14(11), pages 1-13, May.
    9. Steven W. Bayighomog Likoum & Mohamed Dawood Shamout & Ibrahim Harazneh & A. Mohammed Abubakar, 2020. "Market-Sensing Capability, Innovativeness, Brand Management Systems, Market Dynamism, Competitive Intensity, and Performance: an Integrative Review," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(2), pages 593-613, June.
    10. Sang Yoon Shin, 2019. "Network advantage’s effect on exit performance: examining venture capital’s inter-organizational networks," International Entrepreneurship and Management Journal, Springer, vol. 15(1), pages 21-42, March.
    11. Shuja Iqbal & José Moleiro Martins & Mário Nuno Mata & Shumaila Naz & Shamim Akhtar & António Abreu, 2021. "Linking Entrepreneurial Orientation with Innovation Performance in SMEs; the Role of Organizational Commitment and Transformational Leadership Using Smart PLS-SEM," Sustainability, MDPI, vol. 13(8), pages 1-18, April.
    12. Andrea Greven & Steffen Strese & Malte Brettel, 2020. "Determining scientists’ academic engagement: perceptions of academic chairs’ entrepreneurial orientation and network capabilities," The Journal of Technology Transfer, Springer, vol. 45(5), pages 1376-1404, October.
    13. Danilo Magno Marchiori & Silvio Popadiuk & Emerson Wagner Mainardes & Ricardo Gouveia Rodrigues, 2021. "Innovativeness: a bibliometric vision of the conceptual and intellectual structures and the past and future research directions," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(1), pages 55-92, January.
    14. Istipliler, Baris & Bort, Suleika & Woywode, Michael, 2023. "Flowers of adversity: Institutional constraints and innovative SMEs in transition economies," Journal of Business Research, Elsevier, vol. 154(C).

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