Inter-firm Interactions Research Articles

Enterprises and Ecosystems: Features’ Relational Analysis

The article deals with the analysis of the organizational and institutional differences between the enterprises and ecosystems given in relational key and with the use of four-typed system language of G.B.Kleiner, applied for description of institutions as well. Features of different business-ecosystems with indication of dominated characteristics are analyzed which are as follows: innovation-oriented industrial clusters as objective systems, technological platforms as environmental systems, networks as processed systems and business-incubators as projective systems. An evolutionary logic of the enterprise development is presented with accent on two aspects: existential (enterprises are treated as existing objects, legal entities, as a rule, entering into explicit contractual relations and/or practicing implicit relations within themselves) and transactional (mattered in inter-firm interactions or relations between existing or potential elements of hybrid structures). Other logic connects to networks, especially, innovative – principally non-hierarchical structures, relied on the information power provided by the new technological paradigm. It is confirmed that the main difference between competing and functioning in market environment enterprises and such acting in the frame of ecosystems is the studied in the paper enterprises form functional unity with all types of ecosystems, however with different degree of intensity of this unity connection.

NTERNATIONAL STRATEGIC ALLIANCES: COOPERATION OF COMPANIES IN THE IT SPHERE

Background. The IT market in Ukraine annually demonstrates continuous growth and development. This contributes to the fact that its participants are more in contact with their colleagues from other countries. International strategic alliances are becoming one of the most appropriate forms of partnership between domestic IT companies and leading foreign IT companies. In order to anticipate all the risks of joining the ISA, in particular not to lose its subjectivity due to the acquisition, it is necessary to understand the reasons, essence and consequences of the creation of international strategic alliances. An analysis of recent research and publications has shown that despite the existence of some scientific achievements, the issues of forming international strategic alliances in the field of information technologies and the use of this type of cooperation by domestic IT companies remain unresolved. Theaim of the article is to analyze international strategic alliances as forms of cooperation of companies in the IT sphere and the possibility of including Ukrainian companies in these relations. Materials and methods. The research was conducted using the methods of theoretical generalization and analysis. The information base is domestic and foreign works on the functioning of ISAs, statistical sources and Internet resources. Results. The factors that determine the transition from competition to cooperation and the formation of alliances between companies in the IT sector are identified. The types of alliances are described: tactical, quasi-strategic and strategic. It is noted that each of them can be both internal and external (international). The nature of the strategic alliance is analyzed, its characteristics are revealed. Based on the results of the generalized characteristics of the ISA in the IT sphere, its definition is given, on the basis of which the advantages of the alliance are described. It is noted that the peculiarities of the connections of its participants should be taken into account when solving many tasks related to the participation of domestic IT companies in the ISA for the internationalization of business and management. It is proved that in ISA as a pragmatic union the interests of the participants in the strategic direction of their development coincide: each of the participants focuses its activities on the common goals of the alliance. Conclusion. The ISA of IT-sphere is proposed to be considered as a form of inter-firm interaction of IT companies that maintain independence based on the combination of complementary assets of each of them. If all parties of the alliance pursue strategic goals, then this alliance is created in the form of strategic, if there are other goals, the alliance will be tactical or quasi-strategic. In addition, any of the forms can be used to achieve certain business results. Unlike all others the strategic alliances, especially international strategic ones, require a stricter and more systematic management approach to success. The interest of European and American IT companies in forming strategic alliances with leading Ukrainian companies was noted. However, the ultimate goals of such ISAs are not equal long-term partnership, but the acquisition of promising Ukrainian companies. The necessity of careful substantiation of decisions on the entry of domestic IT companies into the international strategic alliance, tactical and operational participation in its management, etc. is proved.

Validation of the Information-Technology-Enabled Interaction Instrument in Contemporary Chinese Context

Practitioners and researchers have shown great interest in information-technology (IT)-enabled interactions across partnering firms and developed instruments for measuring it. However, those instruments might have been under criticism as they were developed before the widespread adoption of the new IT applications like video conferences, DingTalk and WeChat Moments among Chinese managers for the last five years. The purpose of this study is to validate the instrument of IT-enabled formal and informal interactions for the contemporary Chinese context. First, the study reviews the literature on IT-enabled interfirm interactions and designs an open questionnaire through in-depth interviews. Answers from 85 pairs of suppliers and manufacturers are coded and the preliminary item pool is generated through the qualitative analysis. Next, a small-scale pretest with 120 manufacturing firms is conducted to purify and modify the item pool. Finally, a large-scale analysis with 336 manufacturing firms is conducted to check the reliability and validity of the measurements. The finalized scale yields six items measuring IT-enabled formal interaction and five items measuring IT-enabled informal interaction, among which six are newly derived in this study. The validated instrument reveals satisfactory reliability and validity and can serve as the basic instruments for future research on IT-enabled interactions.

Industry 4.0 in services: challenges and opportunities for value co-creation

Purpose This study aims to recognize industry 4.0 opportunities and challenges associated with the co-creation of value in industrial services and to propose a theoretical framework for smart industrial services systems. Design/methodology/approach The authors carried out a systematic literature review based on the systematic search flow method; thereafter, the authors used the content analysis proposed by Bardin (2011) to analyze the resulting portfolio. Findings The authors identified a total of five industry 4.0 opportunities and five challenges for co-creating value in industrial services. Drawing upon these findings, this paper builds a theoretical framework for the smart industrial services system, in which the industry 4.0 opportunities arise from the digitally mediated inter-firm interactions and the challenges related to the resources of this system. Research limitations/implications This study may not have enabled a complete coverage of all existing peer-reviewed articles in the field of value co-creation in industrial services associated with the industry 4.0 technologies. Also, the framework is constrained by being theoretical rather than empirically grounded. Practical implications The findings give managers support to devise strategies for overcoming the barriers that impede them from taking advantage of the opportunities offered by industry 4.0 for co-creating value in industrial services. Originality/value This paper’s uniqueness is to identify the industry 4.0 opportunities and challenges for value co-creation in the context of industrial services and to propose a framework for the smart industrial services system.

A typology of digital platforms of interfirm interaction

Subject. The article addresses economic interfirm interaction and processes that form digital platforms in the context of sustainable development of the society. Objectives. Our aim is to develop an original typology of digital platforms that provide intercompany interaction. Methods. The study rests on the system comparative analysis of prior research, taking into account our own findings. Results. We expanded the essence and substance of the definition of the digital platform in the field of interfirm interaction, defined new categories of types of digital platforms in the business by the level of integration and knowledge-intensity. We also considered parameters of the cost of implementation and the level of digitalization of interfirm interaction, generated a typology of digital platforms in interfirm interaction. Conclusions. The paper defines aspects of further research aimed at developing a methodology for calculating the digitalization coefficient of intercompany interaction. The theoretical significance of the research is in expanding the theoretical apparatus of digitalization of intercompany interaction. The practical significance of the results is in building a mechanism for evaluating the level of digitalization of intercompany interaction.

ACTIVATION OF THE INVESTMENT ACTIVITIES OF THE AGRARIAN ECONOMY SECTOR BASED ON THE FORMATION OF REGIONAL AGRICULTURAL CLUSTERS

The process of forming regional agro-industrial clusters in the Cherkasy region as a basis for intensifying investment activity in the agrarian sector of the economy, in our view, can be considered as a priority task, the solution of which will contribute to the realization of strategic goals of socio-economic development of the region. At present, the focus on priority acceleration of economic growth and improving the quality of life of the population requires the use of effective methods and techniques of national economy, the modern development of which is characterized by the occurrence of certain crisis phenomena that have a negative impact on the socio-economic model of the country.In the agricultural sector, a number of agro-industrial units, lacking quality agricultural raw materials, are considering the possibility of creating integrated formations in order to integrate the processes of production of raw materials and finished products and to find means of investing in production processes. For all agro-industrial units, regardless of the form of integration chosen, the key is that they integrate the entire production process - from the agricultural producer to the consumer of the finished product. The members of the system ensure the promotion of the product throughout the technological chain: production - processing - implementation, which ultimately contributes to the effect of crisis management. Without mediocre participation of the state, science, education, developed infrastructure, this technological chain does not produce a positive result. The most relevant and effective tool for crisis management is the cluster approach, recognized in many developed countries, based on taking into account the positive synergistic effects of regional agglomeration, ie geographically adjacent producer and consumer proximity, network effects, application of knowledge and skills at the expense of coaching association.The purpose of the article is to summarize theoretical and practical approaches to the study of investment activity in the process of formation of agro-industrial clusters and to determine the basic conditions for activation of the investment-innovation component of the cluster policy of agro-industrial production.One of the ways of intensifying the investment development of regional agro-industrial clusters can be the introduction of innovations. Economic clusters enable the authorities to implement the strategy of socio-economic development of the region in the direction of providing competitive advantages of the economy, introduction of innovations and specialization of the territorial economic system.The article is devoted to the problem of activation of investment activity of agrarian sector of economy on the basis of formation of regional agro-industrial clusters. Two main organizational and economic models of cluster organization of inter-firm interaction are distinguished: network and centrifugal. It is suggested to use a combined approach to implement the cluster policy.Production of basic crop and livestock products in agricultural enterprises has been analyzed and positive tendencies for increase of production volume have been identified, except for milk production, which has a negative tendency to decrease.The model of interaction of the participants of the regional agro-industrial cluster in the conditions of the investment process is developed and its role in activation of the investment activity of the region is substantiated. It has been found that the main driving force of the cluster is the raw material zones of processing enterprises, which serve as the poles of the concentration of factors of production of raw materials and capital and ensure the effective return on investment within the cluster.The scheme of management of investment-innovation processes of agro-industrial cluster is presented. It is determined that the integration needs to be deepened within the cluster, since agricultural production is not yet ready for consumption.The level of agricultural investment development, which is steadily increasing, is analyzed, although the region occupies the lowest places among the regions of the country in terms of attracting investment resources. The directions of intensification of investment activity of agrarian production are offered.

Integration projects as relational spaces: A closer look at acquired managers’ strategic role recovery in cross-border acquisitions

Acquired and acquiring middle managers are in a central role in mergers and acquisitions (M&As), as they are responsible for the execution of the acquisition's strategy. However, the context of cross-border acquisitions considerably alters the strategy roles of the acquired middle managers. This paper explores the post-acquisition phase as a collection of integration projects. In so doing, the paper contributes to an emerging stream bridging the M&As and project management literatures. Using a mixed methods research design, our findings are based on an international sample of 52 interviews and 65 survey responses. We offer two contributions to extant theorizing. The first contribution is in revealing the role of integration projects as relational spaces wherein inter-firm interaction and post-acquisition strategy execution is undertaken. The second contribution demonstrates that the recovery of acquired middle managers strategic roles is not only linked to the existence of these relational spaces, but further depends on the project type. Our findings are a call for more research connecting the M&As and project management literatures.

Inter-firm collaborations to make or to buy innovation

ObjetivoO objetivo deste artigo é estudar como as redes de colaboração entre empresas estão relacionadas a diferentes estratégias de inovação seguidas pelas empresas. Em particular, concentra-se na chamada distinção entre comprar e fazer inovação.Design/metodologia/abordagemO artigo estuda o cluster industrial de borracha e plásticos do Uruguai, localizado nas regiões metropolitanas de Montevidéu e Canelones. Os dados foram obtidos a partir do trabalho de campo, através de 118 entrevistas face-a-face aplicadas a diretores executivos de empresas. Ele combina análise de redes sociais com técnicas de regressão logística para determinar como a posição nas redes de colaboração influencia as estratégias de inovação.ResultadosOs resultados provam que a rede tem efeitos diferentes pelo tipo de estratégia de inovação: a centralidade dos graus das firmas (isto é, ter muitos links diretos) facilita a compra de inovações externas, enquanto a centralidade entre as posições (estando localizada em uma posição estratégica na rede) é positivamente associado com a inovação dentro da empresa.Originalidade/valorO artigo fornece uma contribuição relevante para a literatura sobre redes de inovação, elucidando a relação entre diferentes formas de colaboração e diferentes estratégias de inovação. Além disso, faz uma contribuição especial, concentrando-se em inovações e interações entre firmas dentro de um caso típico de uma indústria de baixa tecnologia criada sob o chamado modelo de industrialização liderado pelo Estado.Palavras-chaveAnálise de redes sociais, Inovação, Indústrias de baixa tecnologia, Cluster industrial, Borracha e plásticos, Uruguai

Topological rationality of supply chain networks

In this study, we apply a topologically distributed bounded rationality model to quantify the level of rationality in supply chain networks. We use the averaged Jensen-Shannon divergence values between Nash and Quantal Response equilibria for all inter-firm strategic interactions, which are represented as Prisoner’s Dilemma games, to characterise the average level of rationality in a given supply chain network. This is based on the game theoretic assumption that as the rationality of a particular interaction increases, it converges towards Nash equilibrium, in a certain strategic decision making scenario. Using this model, we demonstrate that hub-and-spoke topologies are collectively more rational compared to scale-free and random network topologies. Finally, we compare our theoretical results against the empirical findings reported for networked systems in various domains. In particular, it is shown that network topologies comprising higher average rationality levels emerge under increasingly competitive environments.

Price premium effect, supply contracts and strategic decision making under environmental considerations

PurposeThe purpose of this paper is to study the impact of collaboration between supply chain entities in a dyadic setting where the manufacturer invests in greening and technology adoption effort leading to a price premium effect for the supply chain players.Design/methodology/approachThe paper uses game theoretic approach to analyze the model of inter-firm interaction in a vertical channel setting consisting of a retailer and manufacturer. The paper studies strategic decisions of the channel members in a decentralized and centralized structure and extends this to decision making under contractual settings.FindingsA two-part tariff completely coordinates the green supply chain, while a cost sharing and revenue sharing contract only achieve partial coordination. Nevertheless, a cost sharing, as well as a revenue sharing contract, increases the greening and technological adoption effort by the manufacturer while yielding the supply chain members a strictly larger profit. Furthermore, a revenue sharing contract in comparison to a cost sharing contract, leads to a larger greening and technological adoption effort by the manufacturer, lower wholesale and retail prices and a strictly larger profit for both the manufacturer and the retailer.Originality/valueThis paper contributes to the green supply chain pricing, technology and contract literature considering strategic interactions between a manufacturer and retailer in a supply chain under price premium effects of greening activities and technological advancements.

Innovative Business Model of the Cluster as an Ecosystem

Business modeling is an innovative form of representation of inter-firm interactions of enterprises and organizations, united by formal and informal economic relations. The business model is a graphic illustration of the structure of these relations, helping to understand their logic and complexity in the context of globalization. Networking and clustering are the responses to the global challenges of the external environment. In these conditions, new variants of an interaction of economic agents arise in conditions of uncertainty and risk. The most common form of intrafirm interaction in the conditions of one territory is clustering, which, as practice shows, have network structures. In our opinion, the purpose of the regional cluster as a network is to implement the key competencies of the territory and improve the quality of the economic situation in the region by improving the business climate of the environment. There are many efforts of scientists and business practitioners to design and make configurations for illustration of the cluster's relations and interactions. The main goal of this article is to show a new way of graphic design of clusters from the position of ecological approach instead of the UML. The article describes the configuration of the cluster business model in its interpretation as an innovative network ecosystem. Theoretical views about the cluster were extended in the direction of the configuration of its business model and the definition of its main structural elements. Particular attention is paid to the partnership interaction of the main groups of economic agents in the cluster, which include: key business structures, key educational organizations, key research organizations, and the state.

The role and place of the procurement process in the functioning of the open innovation model of manufacturing company

To ensure competitiveness in the face of accelerating scientific and technological progress and the digitalisation of socio-economic processes the modern industrial companies should not be limited to internal environment during the process of search and implementation of innovative solutions. These enterprises are conducting an active search for new solutions in the open market and attracting external experts, using the communication potential of the World Wide Web. This model which called as «open innovation», has gained in popularity. Its use leads to the inevitable transformation of the existing business processes in the enterprise, one of which is the procurement process. Open innovation become a new stage in the development of the logistic function, already passed the way from the technical supply function to the procurement division gained the status of one of the key centers of cross-functional and inter-firm interaction on industrial enterprise. An important prerequisite for the success of open innovation, implemented jointly with our suppliers is the availability of long-term partnerships. The further evolution of the procurement function within the model of open innovation should lead to the integration of the procurement division to the acquisition of the results of intellectual activity, not only as a commercial service in company but as the operator of system of knowledge management and network crowd sourcing platform providing information and expert support to take management decisions on those or other innovative solutions offered by external suppliers. The formation of expert community is intended to reduce the risks associated with the procurement of obsolete intangible assets and the illegal use of the results of intellectual activity.

FORMATION OF THE RELATIONSHIP MARKETING MANAGEMENT SYSTEM BASED ON THE CONCEPT OF VIABLE SYSTEMS

The article deals with the main tools for managing the marketing interaction of the enterprise with different partners. The research of relationship marketing management at enterprises is important both in the theoretical and in practical terms. The purpose of the research is to improve the theoretical foundations of the formation of a general management system for relationship marketing for the enterprise and the main groups of subjects of the relationship, which takes into account the relationship with all groups of partners of the enterprise. The model of the relationship marketing management system of the enterprise is proposed based on the metodynamic apparatus of cybernetic modeling of viable systems. The management system for the enterprise’s marketing relationships is presented as a subject (metasystem) and an object of management (operating element), which is proposed as a management process of marketing interaction with major groups of partners. The system of inter-firm interaction, which reflects the formation of individual relationships with a specific partner, is presented. It allows us to coordinate the relationship between the company and each partner group, it also provides viable means of development and helps support long-term business relations and obtain synergistic effects from cooperation with partners. The system of total management of relationship marketing can be applied to any enterprises and organizations. This allows us to coordinate the relationship between the company and each partner group, it also provides viable means of development and helps support long-term business relations and obtain synergistic effects from cooperation with partners.

Managing differences, interaction, and partnership quality in global inter-firm relationships

PurposeThe purpose of this paper is to develop and to empirically test a model that explains how managing differences between an information technology (IT) provider and an overseas client influences partnership quality and ultimately affects the continuity of the relationship.Design/methodology/approachA field survey by distributing questionnaires to Indonesian IT providers was conducted over four months, yielding 78 completed responses. These empirical data were analyzed by the partial least squares–structural equation modeling technique to examine the measurement and structural models.FindingsManaging differences, i.e. cultural, temporal and standards differences, has a positive impact on partnership quality through inter-firm interaction, i.e. information exchange, coordination and participation. Partnership quality, consisting of the dimensions of commitment, trust and integration, has a substantial positive impact on the continuity of the relationship.Research limitations/implicationsThis study was limited by the use of a limited number of samples, reducing the precision of the results.Practical implicationsThis study suggests that if the IT provider is able to manage the cultural, temporal and standards differences with the overseas client, it increases information exchange, coordination and participation between both parties, which are necessary for establishing a high-quality partnership.Originality/valueThis study is the first empirical examination of how the management of differences between an IT provider and an overseas client influences the continuity of their relationship through interaction and partnership quality.

NETWORK STRUCTURE AS TOOL FOR DEVELOPING INFORMATION NETWORK ECONOMY

This article is devoted to the process of establishing a network’ structures and their management, which based on the different methodological approaches. The modern development of economic relations are closely connected with the changing of market relations and economic orientation of the enterprise, it affected at the development of network entities. The interest of scientific community to the processes of networking organizations was caused by the deepening of integration processes and using of various forms of inter-firm interaction. According to the analysis of the professional literature, it was installed that there were no attempts to substantiate the essential functioning of characteristics and the process of phenomenon of the network economy. Effective management of network structures based on use the relationship between the features of the network economy and the process of phenomenalization of this economy. The statement of basic materials: interpretation of scientific views and the definition of “network economy”; logic in the network economy; the investigation або study of the formation, development and functioning of the network economy; discovery (education) the phenomenon of the network economy. Conclusions: formed a general idea about the network structure; described the interconnection of functioning the essential characteristics and phenomenal network economy; the use an arsenal of methodological approaches secured the effective management of network structures.

Формальные признаки территориального кластера и подход к анализу региональной кластерной политики с помощью деловой игры

The article proposes formal definitions and signs of a territorial cluster and similar forms of interfirm cooperation (consortium, territorial production complex, holding, cluster initiative), formed with the help of elements of graph theory, introduced with the purposes of analyzing regional cluster policy and forming a scenario of a business game modeling dynamics interfirm interactions.

ОХРАНА И ГУМАНИЗАЦИЯ ТРУДА: ПРИНЦИПЫ ИНТЕГРАЦИИ В ИНСТИТУЦИОНАЛЬНОЙ СТРУКТУРЕ СОЦИАЛЬНО-ТРУДОВЫХ ОТНОШЕНИЙ В ЦЕЛЯХ РЕШЕНИЯ ПРОБЛЕМ ТРУДОВОГО ОППОРТУНИЗМА НА ПРЕДПРИЯТИЯХ И В ЦЕПЯХ МЕЖФИРМЕННЫХ ВЗАИМОДЕЙСТВИЙ

The article is devoted the problems of overcoming labor opportunism in the field of labor protection the causes of which are explained by the contradictions between the humanistic goals in this field of management and the economic interests of management of both enterprises and their cooperative associations. Financial benefit is only in reducing the cost of measures to improve labor conditions and ensure its safety. As a result, instead of the benefits, enterprises and cooperative networks suffer very significant losses. The authors point of view is in the solution of the problem in the institutional transformation of social and labor relations of enterprises and networks aimed at strengthening such types of social and labor relations as partnership, and the weakening of such types as opportunism (institutional and labor). Institutional transformation is proposed to be carried out on the principles of humanization of labor, which should be integrated into the existing system of labor protection. This methodological approach is recommended to be used both in individual enterprises and in networks of interfirm interactions, organized and functioning in the form of value chains.

Interactive learning for upgrading and growth: Case of Indonesian fishery firms

This paper intends to reveal the interactive learning for upgrading and growth in Indonesian fishery firms. The main question is how learning and innovation have occurred in Indonesian fishery firms. The study was conducted in two categories of fishery firms: fish processing and aquaculture (shrimp). The interfirm interactions contain knowledge flows and feedback in local production network involving local suppliers and foreign buyers. The study found that the model of interactive learning for upgrading and growth work as a coupling of three loops: the upgrading capability, the growth formation, and limiting elements. The upgrading capability is subject to growth formation, which is determined by limiting elements. The limiting elements will control the quantity and quality of materials supply that affect inter-firm interaction. The model suggests that the dynamics of upgrading and growth through interactive leraning will continue in a stable manner by easing the constraints of limiting elements through: combating illegal fishing, encouraging interaction with universities, shifting to higher added value products, institutional support for global trading, preventing shrimp disease, providing infrastructure, business facilities, and regulation information.

Promoting the Opportunity Identification of Industrial Symbiosis: Agent-Based Modeling Inspired by Innovation Diffusion Theory

Promotion of the emergence of synergistic linkages between different firms is crucial in the development of Industrial Symbiosis (IS) networks or Eco-Industrial Parks (EIP). Appropriate strategies for the promotion of inter-firm interactions are required to enhance the emergence of IS networks through institutional capacity building. This research draws on insight from Diffusion of Innovations (DoI) theory, and considers the emergence and development of IS as a process where the knowledge, attitude and implementation of IS synergies are gradually adopted by firms. Accordingly, we propose an Agent-Based Model (ABM) to investigate the influence of promoting strategies associated with various dimensions of institutional capabilities, on the identification of opportunity sets for IS synergies. The simulation results show that both “Knowledge Coordination” and “Relationship Coordination” have a positive impact on the identification of IS opportunities (represented by the adoption of positive attitudes). However, the performance of promoting strategies depends to a great extent on the mobilization capacity and the characteristics of the specific IS solutions. We believe the proposed research provides insights and implications for the design of the strategies to promote effective IS practice.

The impact of the resource specificity on the interfirm interaction

The transactional nature of hybrid organisations in the Russian industrial market is analysed with the help of conceptual tools drawn from transaction cost theory. The dependency of the impact of the specificity of resources on the transactions of hybrid organisations is empirically determined. An outline of the specific character of the organisation of inter-firm cooperation in the Russian industrial market is presented.