Abstract
Managing multiple buyer-seller relationships in business-to-business networks demands an understanding of a firm’s competence to manage in an interconnected environment. This paper reports on an attempt to measure network competence by using the NetCompTest scale in business-to-business markets in South Africa. Based on a pilot study refinement, the paper proposes an adjusted measurement scale and details the results of a second round of measurement conducted amongst 495 business-to-business managers in South Africa. The results established partial support for the use of the NetCompTest scale in a South African context, and analysis of variance indicated that some differences in the measurement based on firm and individual characteristics can be observed in the data. The paper assists in theory-building and provides managerial insights for managing buyer-supplier relationships in networks.
Highlights
A shift in the strategic context of business, driven by the institutionalisation of new technologies, created a network economy where interconnectivity and co-operation is common practice (Batt & Purchase, 2004; McGee et al, 2005)
This paper argues that the continued refinement of the NetCompTest scale benefits from a South African application
Because the primary objective of the study was to explore the appropriateness of the network competence scale under South African conditions, the analysis focused on internal reliability and construct validity in an attempt to gauge the usefulness of the scale in a particular context
Summary
A shift in the strategic context of business, driven by the institutionalisation of new technologies, created a network economy where interconnectivity and co-operation is common practice (Batt & Purchase, 2004; McGee et al, 2005). Referring to knowledge-driven networks, they noted the increasing reliance on external actors to acquire the desired resources for firms to grow and survive. This observation appears consistent with the resource-dependence perspective (Pfeffer & Salancik, 2003) as the network becomes an important strategic resource. A well developed network of relationships may tie a firm into its current ways of operating and restrict its ability to change. A network is a way both to influence and to be influenced
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