Thomas Ritter

Network competence: Its impact on innovation success and its antecedents

Abstract Past research has consistently shown that companies, which have close relationships with customers, suppliers, research institutions, and competitors are more likely to have higher product and process innovation success. But why and how are these firms able to build up and use technology-oriented interorganizational relationships, which give them a competitive advantage? The authors postulate that the underlying reason is a company-specific ability to handle, use, and exploit interorganizational relationships. We call this skill network competence. Drawing upon a sample of 308 German mechanical and electrical engineering companies, results of a LISREL analysis reveal that network competence has a strong positive influence on the extent of interorganizational technological collaborations and on a firms product and process innovation success. Furthermore, four organizational antecedents have an impact on a companys network competence: access to resources, network orientation of human resource management, integration of intraorganizational communication, and openness of corporate culture.

Functions of industrial supplier relationships and their impact on relationship quality

Abstract Although recent scholarly work on business relationships often discusses relationship quality as a major issue, especially with regard to the phenomenon of vendor stratification, there is still little empirical research on this important construct. In this paper, the authors provide a thorough conceptualization of relationship quality and its possible antecedents, i.e., the direct and indirect functions of the relationship for the customer. Drawing on an empirical base of 230 buyer questionnaires, the authors show that the extent to which a supplier fulfills direct and indirect functions in a relationship has a direct positive impact on the relationship quality perceived by the customer. This impact is especially strong when the customer can easily replace the supplier or, in other words, when the supplier faces competition. The findings are discussed and the authors provide managerial implications for decision-makers from both buyer and supplier organizations.

The impact of a company's business strategy on its technological competence, network competence and innovation success

Abstract This paper discusses the dual nature of the key to competitiveness in the network economy: On the one hand, a company needs technological competence in order to add value to products and processes. On the other hand, companies need to develop network competence in order to link their organization to other players in the market to allow interactions beyond organizational boundaries. In this paper, a basic framework for the successful implementation of a technology-oriented business strategy is developed, consisting of four elements: business strategy, network competence, technological competence and innovation success. The model is empirically tested using a database of 308 German companies. The results show that both network competence and technological competence have a significant positive impact on a companys innovation success. Furthermore, the results suggest that a companys technological strategy supports the development of both network and technological competencies.

The Networking Company: Antecedents for Coping with Relationships and Networks Effectively

Abstract Past research has consistently shown that companies have business and nonbusiness, formal and informal relationships with other actors. With focus on product and process development activities, empirical studies have shown the importance of collaboration with, for example, customers, suppliers, research institutions, and competitors. Research also has highlighted that a companys various relationships are interconnected with each other. But why and how are these firms able to build up and use networks of relationships that give them a competitive advantage? I postulate that a particular skill can be identified and described that allows companies to handle, use, and exploit single relationships and whole networks. The new construct “network competence” is measured by assessing a companys degree of network management qualifications and execution of network management tasks. Drawing upon a sample of 308 German mechanical and electrical engineering companies, I show in the analysis that the four organizational antecedents: availability of resources, network orientation of human resource management, integration of intraorganizational communication, and openness of corporate culture account for the development and establishment of network competence within the networking company.

Interorganizational relationships and networks: An overview

Abstract Relationships and networks have been analyzed with different theoretical backgrounds and methods, at different levels, and with different results and conclusions. This diversity promotes a better understanding of the antecedents, dynamics, and effects of relationships and networks. However, this diversity also creates problems to compare and integrate results and to develop a general theory based on cumulative evidence. Therefore, we want to offer a framework, which gives some overview and orientation by classifying and describing the different levels of analysis, the different theoretical and managerial perspectives, and the different objects of analysis, which have been used. This could guide the process of bringing together the different pieces of the research jigsaw called research in business-to-business markets.

The impact of information technology deployment on trust, commitment and value creation in business relationships

To strengthen their position in todays highly‐competitive and fast‐paced business environment, supplier firms often engage in relationships with their customers. Recent advances in information technology offer new ways of managing inter‐organizational relationships. In this paper, a model conceptualizing the impact of information technology deployment on inter‐organizational buyer‐seller relationships is developed. Using an empirical study of 61 German firms engaged in customer‐supplier relationships, this paper also gives some empirical evidence for the developed framework. With regard to relationship management, intra‐ and inter‐organizational information technology deployment has different effects on relationship atmosphere and on the relationships value creation. The findings give new insight into the role of information technology in value‐creation in business‐to‐business relationships. Managerial implications and future research questions in this area are also discussed.

Measuring network competence: some international evidence

Исследуется компетенция сети фирм, а точнее то, как она проявляется в деятельности сети организаций как единого целого. Статью условно можно разделить на три части. Первая и вторая части посвящены исследованию компетенции германских и английских фирм соответственно, а в третьей проводится сравнительный анализ и обосновывается необходимость измерения компетенции сети организаций как единого целого. Обсуждаются в основном два параметра: принадлежность сети к определенной стране и характер ее рыночной ориентации. Параметр принадлежности есть нечто большее, чем просто географическая близость фирм; он учитывает общность культурных интересов и правовой сферы. Исследование показало, что при измерении компетенции сети фирм фактор принадлежности к одной и той же стране оказывается гораздо менее существенным, чем степень рыночной ориентированности.

Redefining market orientation from a relationship perspective

Many studies have shown that market orientation is important for firms because it has a positive impact on performance. However, several studies have indicated that the relation between a firm’s market orientation and its success is sometimes weak and that moderating variables need to be considered at least under certain circumstances. As such the overall message from the market orientation studies is not clear. The usefulness of the market orientation concept must also be questioned when looking at the realities of business markets. In most if not all cases the firms’ “surroundings” should be seen as a network of inter‐organizational relationships rather than an anonymous market. Therefore, in this paper the notion of market orientation is explored with particular focus on inter‐organizational relationships. Hereby, it is argued that the relationships are important and that the overall market orientation of firms needs to be translated to a relationship level in order to be effective. It is further argued that market orientation on a relationship level can be interpreted in terms of a firm’s employed resources and executed activities dedicated to relational exchange processes.

The knowledge retrieval matrix: codification and personification as separate strategies

Purpose – Proposes that multinational companies (MNCs) establish virtual communities of practice, i.e. intranet‐based collaborative forums, and thereby benefit from a combination of codification and personification strategies in order to solve knowledge retrieval problems for the knowledge worker.Design/methodology/approach – Based on an overview of the problems related to retrieval (i.e. individual decoding and interpretation of knowledge), a literature review on individual memory, databases, social capital and virtual communities of practice reveals a knowledge retrieval means matrix, paying respect to retrieval processes.Findings – Virtual communities of practice are suggested as a strategy for internationally‐operating corporations that cannot develop regular face‐to‐face contact between employees, but still need some degree of personification for efficient knowledge transfers.Research limitations/implications – Being a conceptual paper, quantitative/qualitative integration will enrich the debate furt...

A Framework for Analyzing Interconnectedness of Relationships

Abstract Relationships between organizations do not exist in isolation. Impacts of relationships on relationships are frequently noted but analytical tools to deconstruct this connectedness are still missing. In this paper the effects of inter-organizational relationships on other inter-organizational relationships are analyzed in detail. A framework is developed which can be used as a tool to analyze interconnections in business networks. Some established managerial tools need to be revised to reflect interconnections between relationships.