Abstract
With an increasing degree of connections among firms forming network of economic activities, it is timely to assess the potential of these upon embedded firms. This article presents empirical evidence to that end. It distinguishes between decentralized and centralized network structure that illustrate the difficulties encountered in managing an inter-firm network structure. Although considerable studies has been performed in network issues affecting firms performance, very few research analyse the complicating attributes of a centralized network structure on its effects on firms performance. Thus this article described different attributes of the centralized network and its effects on firms’ relational capital outcomes. Using social network analysis methodology this study found that certain structural position occupied by firms in network impacts on its relational capital outcome. This study is significant as it’s contributed to prudent management of resources in managing complex network structure. Future research is also discussed.
Highlights
Managing the complex inter-organizational network can be a difficult task for managers.Structurally, inter-organizational network is virtually formed by the connectivity or links between firms where the integration progressively forms the ultimate structure, which is the inter-organizational network itself (Meyer, Davachi, Ochsner, & Lieberman, 2018)
In inter-organizational studies, the concern with cost and efficiency management of inter-relationships has shifted the perspective of inter-organizational network management to the reductionist perspective (Barile & Saviano, 2018)
Following the inter-organizational network structure for the RHIB was developed based on the archival review and discussion that the researcher conducted with key informants from AMPPHQ-1
Summary
Managing the complex inter-organizational network can be a difficult task for managers.Structurally, inter-organizational network is virtually formed by the connectivity or links between firms where the integration progressively forms the ultimate structure, which is the inter-organizational network itself (Meyer, Davachi, Ochsner, & Lieberman, 2018). Kim & Choi, 2015) a buyer–supplier relationship represents a dyad, or two nodes and one link, in network terms. This form of inter-firm relations or connectivity created the complexity in the inter-organizational network structure. Managing this complexity has taken many approaches. Firms that are not performing based on strict accounting measures will be removed from the network. Another approach to the interorganizational network management is the dynamic network approach. What this argument means is that, each and every member of the network holds a position in the network that is rich in ‘resources’ that only the firm can provide via its embeddedness level in the
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