A Model of Interorganizational Networking Antecedents, Consequences and Business Performance

Abstract

ABSTRACTPurpose: This quantitative study intended to examine the communication interactions that develop within a business network among various actors (i.e., customers, providers, cooperators, etc.), together with their effects upon business networking and performance. To these ends, we developed a conceptual model of dyadic marketing-oriented and network-oriented communication exchanges (i.e., interorganizational antecedents), interorganizational networking consequences, and business performance. Specifically, interorganizational networking consequences were examined in terms of tactical and strategic cooperation, whereas business performance was examined in terms of adaptability, productivity and efficiency.Methodology/approach: To set the hypotheses of the study we delved into the wide stream of marketing literature pertaining to interorganizational networks and business-to-business relationships, and specifically to the marketing orientation theory, the social network theory, and the IMP approach. These research hypotheses were tested using advanced statistical analysis and causal modeling. The research sample comprised 1,000 business-to-business international companies, which were mostly U.S., and European and were randomly selected from the yahoo.com business-to-business companies’ subdirectory. The data collection involved a two-wave e-mail survey, in which the quantitative research instrument was emailed to the respective marketing directors’ personal accounts. Totally 249 high ranking marketing executives responded, thus yielding a 24.9% response rate. The selected data were, then, subjected to rigorous advanced statistical analysis of structural equation modeling, using the AMOS21 statistical package, to test reliability and stability of selected measures and validity of the research model, as a whole.Findings: Overall, the research findings provided sufficient evidence that the proposed model was robust. Moreover, the findings supported that communication exchanges that deploy within a wide array of participants (i.e., within a network of organizational members, customers, partners, and other interacting partners within a market), may have stronger explanatory powers upon a company’s networking effects and business performance, than communication exchanges that evolve merely at a dyadic company-customer level.Originality/value/contribution: This research is original; that is, it deals with empirical, quantitative data and makes an attempt to combine marketing concepts mainly from 3 marketing streams studying the long-term business-to-business relationships. Our approach is based on existing marketing literature, suggesting that networks, apart from being embedded in previous relationships and interactions, they may also be based on more loosely coupling between organizations. Thus, we use the IMP approach to formulate the measures of our study; however, we don’t discriminate between strong and weak ties in relationship bonding. In this research we focus on specific communication behaviors that may nurture interorganizational networking and look for effects upon cooperation and business performance. The research findings imply that marketing executives would worthwhile expand their communication exchanges beyond their narrow customers’, or providers’ network, to the wider array of trustworthy business circle, as such a behavior may largely favor their companies’ adaptability to environmental changes, flourish innovation, and lead to synergies in efficiency and productivity gains.