Business Network View Research Articles

Serial crowdfunding in start-up development: a business network view

PurposeEven though the crowdfunding (CF) literature is rapidly reaching its maturity phase, the topic of serial CF (i.e. the participation in more than one CF campaign) is as much promising as still largely under explored. This study thus aims to offer a thorough view of the dynamic and complex processes characterizing the participation of the start-ups to more than one campaign adopting a business network perspective.Design/methodology/approachIn line with an explorative research aim, a multiple case study analysis is performed by taking into consideration four start-ups engaged in more than one CF campaigns with different combinations of equity and non-equity CF, adopting the actor–resource–activity (ARA) model as theoretical framework.FindingsMultiple CF campaigns are embedded in the overall changing startup’s network and are affected by the concurrent and overlapping startup’s development processes. From this standpoint, the adoption of the ARA model suggests to reconsider the “serial” dimension of multiple CF campaigns. These processes can be more or less “linear” as they could be affected by the combination of CF schemes and by the degree of alignment of actors, activities and resources, whose “assembly” can be facilitated by learning processes and impaired by unexpected circumstances.Originality/valueThis paper explores in depth the startup’s serial CF journey, building on recent studies calling for stronger analyses of the directions and outcomes of innovative funding trajectories pursued and implemented by new business ventures. From this standpoint, to the best of the authors’ knowledge, this is the first study to consider a complete spectrum of combinations between CF schemes within serial CF, thus allowing for a better understanding of the role of such a factor within a dynamic and contextual view, that is, that offered by the business network perspective. This paper also contributes to the Industrial Marketing and Purchasing research on start-ups.

The Successful Internationalization of Intesa Sanpaolo Bank in Central and Eastern Europe: Acquisitions, Insidership and the Uppsala Model

The study of internationalization processes of multinational enterprises and its evolution is one of the most important topics in the domain of international business. According to the Uppsala model and the business network view, being an insider in local networks is a fundamental issue for service companies such as banking groups because of their strong intangible dimension. That’s why VUB Bank is an extraordinary bank. It has a little office in Prague, the only one in Czech Republic, and, at the same time, owns 233 branches in Slovakia. But this bank is a subsidiary of Intesa Sanpaolo, the biggest Italian banking Group, one of the leaders in the European market. Starting from this empirical observation, and using an inductive methodology, this paper will try to explain how the Intesa Sanpaolo Group successfully created a business network in Slovakia, its first market by total assets in Central and Eastern Europe. Our study shows that Banking Groups can overcome the liability of outsidership through a progressive commitment and a “local-passport strategy” based on the acquisition of existing companies.

A business network view on value creation and capture in public-private cooperation

Intersecting the boundaries between public and private economic activity, this study contributes to the research on public-private cooperation. It comprehends how these hybrids organizational arran ...

Entrepreneurship in China: The role of localisation and urbanisation economies

Why are some regions more entrepreneurial than others? This study explores the determinants of manufacturing entrepreneurship at the prefectural city level in China by highlighting the influence of localisation and urbanisation economies and the significance of technological relatedness and small firm clusters. Descriptive analysis has reported significant and increasing spatial variation of manufacturing entrepreneurship in China during 2001–2007. The empirical results based on the negative binomial model provide evidence to support the business network view of entrepreneurship. Localisation economies can predict entrepreneurship well, while the effects of urbanisation economies are mixed. In terms of localisation economies, supplier/customer linkages play a very important and positive role in cultivating entrepreneurship. The mixed results of urbanisation economies are mainly derived from the interweaving of related variety and unrelated variety. The former significantly promotes entrepreneurship, while the latter in most cases discourages entrepreneurship. The clustering of small firms has a larger effect on entrepreneurship, which is consistent with the view of Vernon and Chinitz effect.

A business network view on value creation and value capturing in public-private cooperation

Intersecting the boundaries between public and private economic activity, this study contributes to the research on public-private cooperation. It comprehends how these hybrids organizational arrangements influence value creation and capturing mechanisms. A case study based on the development of a public transportation solution in Brazil is undertaken. Using a business network approach, we propose a theoretical framework of value creation and capturing through public-private cooperation and argue that the value is constructed through the complementarity of resources and the cohesiveness of motives of the involved actors. Our findings suggest that the success of the cooperation goes beyond the benefits from simply generating revenues, thereby expanding the value capturing concept.

A relationship view of MNCs' innovation management in emerging economies - the Amazon connection case

It is claimed that participation and innovation in emerging economies will set the competitiveness agenda for MNCs in the future. There is currently a need for more knowledge on the peculiarities of innovating in these markets, including the even more profound need for interaction and relationship building between actors from different sectors in society. The aim of this paper is, therefore, to reach a better understanding of the impact of the interaction between various actors, both business and socio-political, for the innovative performance of MNCs in emerging markets. We apply a business network view of innovation including business relationships in general and relationships to civil society actors in particular, using the relational concepts of trust, knowledge and cultural compatibility to analyse the process at hand. A case study was conducted of the MNC-led project 'Amazon Connection', which enabled connectivity in the distant Amazonian region of Para, Brazil.

Corporate social responsibility as a marketing strategy in foreign markets

Purpose– The authors are witnessing the increasing extent of corporate social responsibility (CSR) performance as strategic behaviour specifically in emerging markets. The purpose of this paper is to investigate how multinational companies (MNCs) manage CSR activities in emerging markets to aid their core business activities. In line with this question, the paper aims to develop a theoretical view for deeper understanding of the strategy in CSR practices aiding internationalization. The view is based on a business network perspective highlighting the four concepts of learning, commitment, legitimacy and trust.Design/methodology/approach– The methodology employed is qualitative, based on interviews with involved parties. The case study is about the experiences of a Korean MNC’s CSR strategy when entering into the Chinese electronics industry.Findings– The case illustrates how the Korean MNC committed resources to gain trust and legitimacy that improved their market position. It further manifests that the firm’s CSR strategy was proactive because of the large commitment in several long- and short-term projects towards the society. Investment in social issues like education, environmental problems and communities aided the firm’s entry.Research limitations/implications– The study has a qualitative and in-depth nature. Future research is needed in order to generalize the proposed theoretical frame.Practical implications– The study manifests how a MNC employs CSR strategy for internationalization in a foreign market. It shows how managers can undertake different practical CSR measures to enter and expand in foreign markets.Social implications– While internationalization of firms is mainly based on their business commitment towards counterparts or business firms, the study shows how CSR strategy and activities towards the society support their businesses.Originality/value– While internationalization of firms is mainly based on their business commitment towards counterparts or business firms, the study shows how CSR strategy and activities towards the society support their businesses. The study investigates CSR strategy and enlightens activities like education and environmental problems. The study further develops the business network view and includes social aspects. The theoretical view holding the four relationship elements of trust, knowledge, legitimacy and commitment permits deeper understanding of the MNC’s proactive CSR behaviour in new markets.

Internationalization of Firms from New Emerging Markets in other New Emerging Markets: Opportunity Development of a Turkish Firm in Romania

The arena of entrepreneurial behavior of MNCs from new emerging markets and how they develop opportunities in other new emerging markets is almost untouched. This paper tries to answer how firms from new emerging markets manage their entrepreneurships in other new emerging markets. Unlike the internationalization of Western firms, firms from new emerging markets often lack sufficient knowledge and therefore internationalize quickly by acquisitions. This entrepreneurial behavior is contaminated with high risk. How these firms manage the process of opportunity discovery and exploitation becomes an interesting topic for research. The study aims to develop a theoretical frame for analysis of the firms’ entrepreneurial behavior when developing new opportunity. It employs business network view for deeper understanding of opportunity development in the process before and after an acquisition. The process view in this construction grasps the two internationalization elements of knowledge and resource commitment. Network approach is used to analyze the empirical case study of a Turkish firm's international opportunity discovery in Romania during the period of 1998-2014. The study aims to promote new knowledge on how firms from new emerging markets manage such opportunity when acquiring a firm from another new emerging market.

Dual embeddedness, influence and performance of innovating subsidiaries in the multinational corporation

This study adopts a business network view to study the effects of subsidiary embeddedness on both subsidiary influence within the MNC and innovation-related business performance. Through Structural Equation Modeling we analyze subsidiary relationships connected to 85 innovation projects. The results show that external and corporate embeddedness are complementary contexts, although they affect subsidiary influence and performance differently. Whereas external embeddedness directly affects innovation-related business performance, corporate embeddedness strengthens the subsidiary's influence within the MNC, which in turn positively relates to performance. Moreover, as the study also finds that external and corporate embeddedness are positively associated, it stresses the issue of simultaneously balancing both external and corporate relationships (i.e., dual embeddedness) to nurture innovation projects.

The Role of Dual Embeddedness in Subsidiary Competence Creation: A Business Network View

This paper uses a business network view to analyze the role of internal and external embeddedness, i.e., dual embeddedness, in innovation development and the effects on subsidiary competence creati...

Markets as networks: implications for strategy-making

Based on empirical studies of firm exchange activities in business markets, this paper outlines a business network view of the firm-market relationship, which differs fundamentally from the view assumed by neo-classical economic theory. We define business networks as sets of connected business relationships. Thus business relationships and connections between relationships are the critical elements in the business network view. It is assumed, as suggested by the Uppsala internationalization process model, that an interplay between knowledge and commitment development is the mechanism that drives the relationship and network development process. Against this background the paper discusses how strategic change is analyzed in literature on alliances and networks. In conclusion the paper presents a set of propositions about strategy-making in business network settings.

Managing the Embedded Multinational: A Business Network View

Managing the Embedded Multinational: A Business Network View

Balancing subsidiary influence in the federative MNC: a business network view

The contest for intra-organisational power in the multinational corporation (MNC) has gradually become a prominent issue on the research agenda. As long as 25 years ago, Hedlund (1980) investigated the strategic roles of subsidiaries in MNCs, and Doz and Prahalad (1981) raised the issue of how difficult it is for headquarters to remain in control of its subsidiaries and to influence their strategies over time. Since then, several researchers have suggested that MNCs can be considered to be dispersed structures of power in which the top management’s authority does not necessarily result in hierarchical power being the ultimate control mechanism (Hedlund, 1986; Forsgren, 1989; Ghoshal and Bartlett, 1990; Doz and Prahalad, 1993; Ferner and Edwards, 1995; Kristensen and Zeitlin, 2001; Morgan and Whitley, 2003). Birkinshaw and Hood (1998) examined the evolution of capabilities at the subsidiary level and recognised that, in most corporations, there is an ‘internal competition for charter’ that implies a process of change in subsidiary roles (Birkinshaw and Hood, 1998: 782). Case research has also indicated that changes in the charters of divisions or subsidiaries in MNCs constitute a strong feature of horizontal or vertical competition in the corporate ‘marketplace’ (Galunic and Eisenhardt, 1996; Birkinshaw and Fry, 1998). The tension between the headquarters and overseas laboratories caused by the laboratories’ desire for autonomy and influence is an example of such a competition (Asaka wa, 2001).