Abstract
Based on an existing conceptualization in the literature, this study operationalizes the construct of organizational networking, through a rigorous two-stage scale construction and validation process. Organizational networking refers to firm behaviors, i.e. the activities/routines/practices, which enable an organization to make sense of and capitalize on their networks of direct and indirect business relationships. We conceptualize the measurement model as a second-order formative construct with four first-order reflective constructs based on a four-dimensional view of organizational networking comprising information acquisition, opportunity enabling, strong-tie resource mobilization and weak-tie resource mobilization. The scale validation was undertaken at the first- and second-order levels. The result confirms the four distinct first-order measurement models. At the second-order level, a MIMIC (multiple indicators and multiple causes) model was employed to assess the validity of the formative measurement model. The results suggest that all four components significantly contribute to the overarching construct of organizational networking, with strong-tie resource mobilization being the most important contributor. Thus, our operationalization confirms the uniqueness of the different dimensions of organizational networking that should be configured as a strategy of sensing and seizing opportunities in the network. The organizational networking scale will provide future research with a basis to explore different strategic patterns of networking behaviors in varying contexts, and its role in relation to other organizational behaviors and outcome variables, such as firm performance.
Highlights
The implications of firms being embedded in business networks have been well established in the literature, suggesting that the business relationships, which make up these networks, enable firms to identify opportunities, access rich information, and undertake effective and efficient knowledge transfer and resource mobilization (Achrol & Kotler, 1999; Möller & Rajala, 2007; Uzzi, 1996)
Given that Thornton et al.'s (2013) conceptualization of organizational networking was developed within the context of the UK manufacturing sector and the distinctions between the four dimensions have only been evaluated qualitatively, our study aims at furthering their research findings in order to develop a rigorous measurement model and to establish its validity across both manufacturing and service firms
We utilize three criteria to critically review a small body of literature focusing on the strategic aspects of organizational networking based on their definitions and dimensions, the network characteristics and the empirical base
Summary
The implications of firms being embedded in business networks have been well established in the literature, suggesting that the business relationships, which make up these networks, enable firms to identify opportunities, access rich information, and undertake effective and efficient knowledge transfer and resource mobilization (Achrol & Kotler, 1999; Möller & Rajala, 2007; Uzzi, 1996). Mitrega, Forkmann, Ramos, & Henneberg, 2012; Ritter, 1999; Walter, Auer, & Ritter, 2006) This approach has deepened our understanding of how firms can efficiently and effectively manage their relationship portfolio (and their network position) by developing and establishing internal processes to deal with multiple direct relationships simultaneously. There is an underdeveloped and yet steadily growing stream of research focusing on the strategic aspect of outward-facing networking behaviors, aimed at indirect business relationships as well. These behaviors are employed by firms to understand the wider network dynamics and capitalize on them based on their perceptions of the network (Håkansson, Ford, Gadde, Snehota, & Waluszewski, 2009). In this wider context the concept of organizational networking becomes important
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