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A Study on the Sustainable Development Strategy of Firms: Niche and Social Network Theory

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  • Yung-Shuan Chen

    (School of Economics and Management, Dongguan University of Technology, Dongguan 523808, China)

  • Han-Sheng Lei

    (Department of Business Administration, Yunlin University of Science and Technology, Yunlin 64002, Taiwan)

  • Wei-Che Hsu

    (Department of Business Administration, Yunlin University of Science and Technology, Yunlin 64002, Taiwan)

Abstract

In the industrial environment, individual enterprises survive by obtaining specific resources. Niche theory uses adaptations of the organizational niche and the environment to explain the survival opportunities of generalist and specialist organizations. However, it does not explain in depth the key to the sustainable development of many enterprises with poor conditions, which have productive social relationships and can obtain the resources that are needed for sustainable development from these relationships. In this study, 106 valid questionnaires were obtained through e-mail. Taiwanese firms investing in China were taken as the enterprise groups, and SPSS statistical software was used to test the empirical relationships among niche characteristics, network relationships, and enterprise performance. The research draws the following conclusions. (1) When the external environment changes unfavorably, the financial performance of firms with a high degree of network embeddedness and large niche width is poorer than that of firms with a low degree of network embeddedness. (2) When the external environment changes unfavorably, the financial performance of firms with a low degree of network centrality and high niche specificity is better than that of firms with a high degree of network centrality. These results can provide suggestions for management theory and practice.

Suggested Citation

  • Yung-Shuan Chen & Han-Sheng Lei & Wei-Che Hsu, 2019. "A Study on the Sustainable Development Strategy of Firms: Niche and Social Network Theory," Sustainability, MDPI, vol. 11(9), pages 1-25, May.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:9:p:2593-:d:228461
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    3. Airlangga Hartarto & Jenri MP Panjaitan & Sumiyana Sumiyana, 2020. "A new method to empower organizational readiness for change in Indonesian SMEs," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(2), pages 230-252, December.
    4. Peizhe Shi & Zhaohan Lu & Mengqing Zhou & Ning Wang & Yuping Wu, 2023. "Niche Suitability Evaluation and Path Selection for the High-Quality Development of Cities in the Yellow River Basin," IJERPH, MDPI, vol. 20(4), pages 1-21, February.
    5. Xuhong Zhang & Haiqing Hu & Cheng Zhou, 2023. "Spatiotemporal Evolution and Cause Analysis of Innovation Ecosystem Niche Fitness: A Case Study of the Yellow River Basin," Sustainability, MDPI, vol. 15(12), pages 1-16, June.

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