Types Of Business Networks Research Articles

Typology of business network models: a proposal based on a systematic literature review

Purpose: to develop a proprietary typology of a business network based on a systematic literature review. Design/methodology/approach: the typology method facilitates the analysis and understanding of the essence of business networks by identifying and characterizing their different types. The systematic literature review (SLR) methodology was used to develop the typology, enriched with the snowball method. Findings: analysis of the content of publications selected during the SLR procedure made it possible to indicate various criteria for the division and types of business networks from widely quoted literature. On this basis, a typology of business networks was proposed, divided into four main types: networks originating from industrial districts, strategic networks, cooperation networks, and global business networks. Practical implications: the possibility of using the proposed concept in assessing various business network models will enable the formulation of diagnostic findings and comparative and dynamic research. Originality/value: at the current stage of scientific reflection, the developed typology enriches the theory of organizational networks by systematizing and comprehensively addressing business network models, which may lead to identifying trends in their development. It is addressed to both researchers dealing with network issues and practitioners. Keywords: business networks, typology, systematic literature review (SRL), typology method. Category of the paper: literature review, viewpoint.

About one of the modern trends of business digitalization

Introduction. Currently, a business both organizes its sales through social networks and solves various business problems for them, for example, finding employees and business partners, expanding sales markets. Companies that want to grow successfully, to be in demand in the market, must pay close attention to social networks. The purpose of the paper is to study the role of social networks in the functioning of business, establishing and maintaining business communications, and assessing the advantages and disadvantages of different types of business networks. Results. Internet penetration in Ukraine in January 2021 is higher than the world average – 67.6 % or 29.47 million users, and the average growth of Internet users in Ukraine – by 7.3 % or 2 million people. A positive trend in the use of social networks in Ukraine has been observed in recent years also. Thus, their use for business communications in Ukraine is a promising way to establish business contacts. Among the most popular social networks in Ukraine in recent years are Facebook, YouTube and Instagram. If the promotion of goods and services is appropriate through non-professional social networks, it is better to address business issues in professional networks, such as business social networks. Their purpose is to establish business contacts for job search, business partners, meet potential employers, announce vacancies and search for employees, investors, exchange experiences, etc. The disadvantages of using social networks for business are: the ability of attackers to access personal data, depersonalization of contacts etc. Business social networks also include corporate social networks. They help to organize and manage the staff distributed by the corporation's branches with the help of modern forms of business communication. Conclusion. Ukraine is characterized by a higher than the world average, Internet penetration. The same trend is observed in relation to the use of social networks in Ukraine. Although social networks for private use serve as a good platform for advertising and selling goods, from a business point of view, business social networks are the most appropriate for solving business issues and establishing business contacts. Their importance is growing due to the growing globalization of the economy, as well as the need for remote communication, which is due to the danger of the spread of Covid-19.

Networks as a moderating factor of the effect of institutional distance on export performance

PurposeThe purpose of this paper is to investigate the moderating effect of business networks on the export performance of firms.Design/methodology/approachFollowing recent studies conducted from a network perspective, this moderating effect is studied for different types of business networks. To do this, a two-step Heckman-probit model is implemented for a sample of more than 2,000 manufacturing companies with information from the years 2006 to 2012. This study analyses the effect of nine variables of institutional distance between Spain and four geographical areas for collaborating and non-collaborating firms.FindingsThe main contribution of this paper is suggesting that vertical networks reduce the negative effects of institutional distance faced by the company in the early stages of its export process.Practical implicationsAccording to the results of this paper, managers should make a greater effort to expand their networks when they want to start exporting to further markets, as some networks reduces the negative effect of distance on export propensity. Moreover, the results also suggest that participating within a network may not be sufficient to increase the propensity to export of a firm, being important the kind of network in which companies participate.Originality/valueThe originality of this paper lies in providing empirical evidence that distinct kind of networks have different effect on the internationalisation process of companies, and that they affect not only directly as previous studies showed but also indirectly moderating the negative effect of the differences between markets.

Business networking in organisationally thin regions: a case study on network brokers, SMEs and knowledge-sharing

PurposeResearch on business networks in organisationally thin regions, which are characterised by a low density and quality of business networks, is still in its infancy, while the facilitation of business networks receives increasing interest. The present paper combines both perspectives by investigating how different types of network brokers facilitate business networking and knowledge-sharing in organisationally thin regions.Design/methodology/approachBurt's theory on brokers in social networks is applied to knowledge-sharing in business networks for organisational thinness as context. A qualitative case study represents the empirical basis that describes network brokers from various domains in three different German case regions, which are characterised by organisational thinness.FindingsThe network brokers studied facilitate different types of business networks, and they use various levers to increase knowledge-sharing among companies in business networks. Two broker types emerge, private business-driven versus public policy-driven network brokers with distinct approaches to the facilitation of business networking and knowledge-sharing and different limitations due to organisational thinness.Practical implicationsCompanies, notably SMEs, in contexts characterised by low networking density and quality may benefit from various types of network brokers that foster business networking and instigate knowledge exchange. Public policy should embed activities of private brokers in existing SME assistance programmes to increase the quantity and quality of business networks.Originality/valueNetwork facilitation in regions with weaknesses in their endowment with industry clusters, business networks and innovative knowledge exchange is under-explored, and this paper contributes to shedding light on this topic with a case study.

Business Networks Associated with Sustainability of SMEs in Uganda

This research was carried out with an intention of establishing association between business networks and sustainability of SMEs in Uganda. A total of 384 SMEs were sampled for this purpose. From each SME, one respondent was considered. This respondent was either the owner or the manager. Survey method with specific focus on the use of closed ended questionnaire was employed in the study. Based on the factor analysis conducted on the data collected, three important components of business networks were established namely; quality of suppliers, operations of business associations and SACCOs as well as existence of loyal customers. To test the association, correlation and regression analyses were conducted. Results indicated that all components of business networks had significant association with SME sustainability in Uganda. Out of the three, quality of suppliers had the highest degree of association while operations of business associations and SACCOs had the lowest association. The same trend was reflected in the results from regression analysis with the exception of operations of business associations and SACCOs which did not have significant influence onto SME sustainability. Based on these results, it was concluded that quality of suppliers and existence of loyal customers had significant influence onto SME sustainability in Uganda. It was recommended that SMEs in Uganda need to focus on quality of suppliers as well as loyal customers in order to realize sustainability. These two types of business networks are therefore crucial to the sustainability of SMEs in Uganda. Though they did not have significant influence, business associations and SACCOs need not be ignored considering that they too had a significant association with SME sustainability.

Trade show networks, trust and organizational learning: the effect of network ties

Purpose This paper aims to evaluate the behavior of micro and macro business networks in a trade show context. The following questions are addressed: How do business networks impact organizational learning at trade shows? Can relational ties between networks influence organizational learning? Does trust play a role between different network types and organizational learning? Design/methodology/approach The theoretical framework for this research is based on the broad spectrum of social exchange theory (Cropanzano and Mitchell, 2005; Foa and Foa, 1974, 1980; Kelley and Thibault, 1978; Kelley, 1997). Social exchange theory has several different interpretations; one common view of this theory involves a series of interactions that result in obligations for the participating members (Emerson, 1976; Cropanzano and Mitchell, 2005). This model extends the Levin and Cross (2004) model presented in their article, “strength of weak ties you can trust: the mediating role of trust in effective knowledge transfer”. Findings This paper is a review and synthesis of trade show, trust, organizational learning and business network literature. This conceptual paper concludes with eight propositions, which delve into connections between micro and macro networks, strong and weak ties in these networks and the effect on organizational learning. Trust is the mediating variable between networks and organizational learning. High levels of trust could change the learning approach (adaptive, generative or transformative) of the different networks. Research limitations/implications The propositions integrate extant research on trade shows and will guide future research regarding the relationship between types of business networks, trust and organizational learning. Practical implications This conceptual paper looks at trade shows from a network perspective; specifically, how do trade show networks impact organizational learning. Trade show participation results in different approaches to organizational learning, which can be modified based on the level of trust that exists between network members. Trade show participation enables both adaptive and generative learning. However, atypical interactions between business networks occasionally produce transformative learning. Originality/value This conceptual paper offers an innovative approach to trade show research by analyzing the relationship between trade shows and organizational learning from a network perspective, using trust as the mediating variable.

Exploring Business Networks and its impact on firm Performance in an Auto-Component Cluster: A Study of Gurgaon Auto-Component Cluster

This paper aims to answer two research questions: first, what are the different types of business networks formed by firms with the stakeholders present in a cluster and second, to explain the relationship between business networks and the performance of firms. To answer the first research question, this study uses an exploratory research design which involves survey research method where data was collected through survey questionnaire. Data for questionnaire was collected from managers and owners of firms operating in the cluster at their offices. To answer the second question, this study uses a descriptive research design which makes use of survey research method to examine the relationship among business networks and firm performance by collecting data through survey questionnaire. With respect to exploration of different types of business networks, the study has identified two types of business networks with local associations and government agencies, only one type of business network with the educational institutes and suppliers, and lastly four different types of business networks between a firm and its buyers. However, with respect to network with other stakeholders like financial institutes (banks), research institutes, and competitors, the study shows that the interaction between a firm and these stakeholders is weak. With respect to impact of business networks on firm performance, the study suggested that majority of the formed business networks are significantly and positively related to firm performance. The business networks identified in the study provide a much deeper understanding of how firms connect with its suppliers, its buyers, government agencies, and educational institutes operating in an auto-component cluster.

Business Networks in an Auto-Component Cluster of India: A Study of Gurgoan Auto-Component Cluster

The purpose of this paper is to find out the different types of business networks formed by firms with the stakeholders present in a cluster, i.e. how firms in a cluster interact with the cluster stakeholders? This study uses an exploratory research design which is carried out in two stages, first stage involves use of primary data which was collected through semi-structured personal face-to-face interview mode and second stage involves survey research method where data was collected through survey questionnaire. The study has identified four types of business networks between a firm and its buyers, only one type of business network with the suppliers and educational institutes respectively, and lastly two types of business networks with government agencies. However with respect to business networks with other stakeholders like research institutes and competitors, the study shows that the interaction between a firm and these stakeholders remains largely unfilled.

Business networks in an auto-component cluster of India: a study of Gurgoan auto-component cluster

The purpose of this paper is to find out the different types of business networks formed by firms with the stakeholders present in a cluster, i.e. how firms in a cluster interact with the cluster stakeholders? This study uses an exploratory research design which is carried out in two stages, first stage involves use of primary data which was collected through semi-structured personal face-to-face interview mode and second stage involves survey research method where data was collected through survey questionnaire. The study has identified four types of business networks between a firm and its buyers, only one type of business network with the suppliers and educational institutes respectively, and lastly two types of business networks with government agencies. However with respect to business networks with other stakeholders like research institutes and competitors, the study shows that the interaction between a firm and these stakeholders remains largely unfilled.

Когда и почему региональные кластеры становятся базовым звеном современной экономики

In this paper, we examine the modern cluster theory and the specific features of regional innovation clusters as complex adaptive systems. Clusters have become a typical pattern of industrial organization in national economies under their transition to innovation-driven model of growth. We provide an overview of the contribution of various theoretical frameworks (evolutionary theory, spatial development theory, theory of technological change and system innovation, and Porter’s competitiveness theory) to the cluster concept and consider the latter from the perspective of complexity economics. On this basis, we differentiate true clusters from their nominal counterparts and propose three analytical dimensions to explore clusters, namely, as a special class of industrial agglomerations, as a special class of innovation ecosystems, and as a special class of economic projects (cluster initiatives). We examine the properties of clusters corresponding to each class and demonstrate their role in the geographical and functional fragmentation of production, in the integration of local exporters into global value chains, and in bridging communication gaps and developing collaboration among economic agents. We show that clusters occupy a central place among various types of business networks and have a comparative edge making them key building blocks of the modern industrial landscape. Further, we explain how the innovation capacity of clusters is affected by network synergy effects arising from the triple-helix pattern of collaboration among their participants. Finally, we draw conclusions regarding national cluster supporting policies, including those applied in modern Russia.

Leveraging complexity for ecosystemic innovation

This paper looks at innovation ecosystems through the lens of complexity science, considering them as open non-linear entities that are characterized by changing multi-faceted motivations of networked actors, high receptivity to feedback, and persistent structural transformations. In the context of the growing organizational complexity of economies, driven by their adaptation to high uncertainty, and the central role of collaboration, we differentiate the innovation capacity of various types of business networks by the complexity of their internal interactions, thus identifying the place of innovation ecosystems in the world of business networks, as well as the place of innovation clusters among other innovation ecosystems. We observe how innovation ecosystems have been viewed in four different research streams: management literature; the inter-firm and business network stream of economic and sociological literature; the innovation policy and competitiveness agenda in economic literature; and the dichotomy of localized and economy-wide innovation ecosystems in policy studies (in economic literature, evolutionary geography, and regional research). We then describe generic properties of innovation ecosystems in terms of complexity science, viewing them as complex adaptive systems, paying special attention to the complexity of innovation clusters. We compare complexity thinking of modern economies, deriving from their emerging ecosystem design, with traditional thinking conceived for industrial era, drawing insights for a better transition to innovation-led growth. We conclude with a summary of key findings, practical and policy implications and recommendations for further study.

Developing and managing digital service ecosystems: a service science viewpoint

Purpose – The need for modern enterprises to seamlessly interoperate poses significant challenges on their capabilities for engaging in multiple business networks. This paper considers a particular type of business network, namely, “service ecosystems”, and proposes architecture for enabling business firms to: control dissemination and usage of the resources they contribute to the ecosystem; and develop corresponding service offerings. Design/methodology/approach – A literature review informed our research work and contextualized the development of relevant research questions. The research questions were based on unstructured, creative techniques (e.g. brainstorming), combined with rigorous requirements specification for software tools developed as part of this research. Overall development was based on service science and enterprise interoperability research, distilled in four principles that provided the context and direction for this work. Findings – Three key components of the proposed architecture were developed: service map, which identifies the building blocks needed to construct a service ecosystem; interoperability model, as a decision-making mechanism for dynamic (re-) arrangement of a service map’s building blocks; and shared service infrastructure for the provision of support services to all ecosystem participants. Originality/value – This research has advanced current thinking in developing and managing service ecosystems. By adopting a service science viewpoint (service value co-creation, value-in-use), a holistic approach for building collaboration capabilities is described: at the enterprise level, it pertains to decision-making mechanisms for service provision; at the ecosystem level, it pertains to a software platform for managing common collaboration tasks.

Exploring clusters and their value as types of business networks in the agricultural sector

The undisputed link of the agricultural sector with regional economies, along with the increased competition, fosters agri-business companies to rethink their business philosophy and to transform from isolated firms to members of more extended business formations. The paper examines a particular type of business network, the cluster. It focuses on the concept of clusters and on cluster-based strategies in the context of agriculture. In particular, the paper explores the value of clusters by taking into consideration the particularities of the agricultural sector. Potential benefits and constraints of agri-business cluster development are also presented.

The Value of Information Integration in Meeting Delivery Dates

In this article, we consider the value of shared information within a business network. To make the problem concrete, we focus on a specific operational problem: How the final supplier to the customer determines promised delivery dates. In a traditional supply chain, the final supplier has little or no information on the delivery performance of intermediate suppliers and thus, has limited information with which to set delivery dates. On the other hand, in an information-integrated business network, the final supplier's enterprise resource planning (ERP) system can interact with all the intermediate suppliers' ERP systems to determine exactly how far ahead or behind schedule the network is in meeting the needs of a specific customer. This information should improve the final supplier's ability to set realistic delivery dates. We attempt to quantify the value of this information and determine precisely why it is valuable so that management can best exploit information integration. We use a modeling approach in this research, beginning with simple analytic models and progressing to more realistic simulation models. Our analytic model establishes an important principle: Information integration not only significantly improves the average on-time delivery performance of a business network, but also dramatically improves its worst-case performance. Because customer dissatisfaction is generally associated with worst-case performance, information integration may be highly beneficial even if its effect on average on-time delivery is small. Simulation models allow us to compare the performance of more realistic business networks. These models suggest, for example, that the value of information integration is dependent on both the structure of the network itself (whether serial or arborescent) and on the typical customer order date in the production cycle. These insights allow us to begin to identify the types of business networks in which information integration will have the highest value.