Investigation of the Effects of the Company’s Capabilities on Attracting External Collaboration and Company’s Performance

Danesh Rahbari,Seyed Mahdi Jalali

doi:10.5539/res.v8n4p45

Abstract

<p>One of the major tasks of the managers is achieving the coordination between the company and external environment to enhance the company’s financial performance. This research aimed to focus on attracting external effective collaboration, and first investigate effects of three capabilities of innovation, information, and relational on it, and then examine the effect of this factor on market and financial performance of the studied companies. At first, the variables of innovation capability, information capability, relational capability, company’s financial performance, company’s market performance, and also attracting external effective collaboration were studied in the review of literature. Then, a questionnaire was designed and distributed among the companies that were participated in Tehran international exhibitions and collected data was analyzed by correlation coefficient tests and structural equation modeling. To analyze the data Excel, SPSS, and Amos software were used. Findings showed that the relational, information, and innovation capabilities of company can increase companies financial and market performance through attracting external collaboration.</p>

Highlights

One of the major issues that managers face these days is trying to balance between the intensity of competition and the company’s properties (O’Cass et al, 2007)
External collaboration is a key instrument in completing the activities that lead to internal organizational value creation and increases its competitive advantage, because in an economy based on knowledge and network, innovation is not located within the company but it is outside the company and is among its external partners (Powell, 1990)
The first group is associated with innovation and researchers have found that technological capability and innovation are involved in product design, new product development and business innovation

Summary

Introduction

One of the major issues that managers face these days is trying to balance between the intensity of competition and the company’s properties (O’Cass et al, 2007). It is the duty of the managers to achieve coordination between company and external environment to enhance the company’s financial performance. Since the adoption of different approaches of measuring the performance may generally lead to identifying the strengths and weaknesses of the companies, financial and market performance reveal the company’s success in the market; these two factors are measured by several ways and approaches (Weerawardena et al, 2006). We can simultaneously achieve the organizational internal effectiveness and appropriate compliance with the external environment (O’cass, 2006)

Objectives

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Results

Conclusion