Effects of Network Capabilities on Firm Performance across Cultures

Abstract

The purpose of this study is to identify key factors related to network capabilities that enhance the performance of Chinese, Turkish and German firms. Chinese (n = 107), Turkish (n = 129) and German (n = 109) MBA-students completed a questionnaire, based on an earlier version developed by Kenny [2009], which included questions on the respective firm, its performance and network capabilities. The predictors of firm performance varied by country: in China "information sharing" and "trust" were important, in Turkey "network coordination" and in Germany "human capital resources. " In addition, each country had its own specific drivers of firm performance. The findings of this paper should enhance understanding of the cross-cultural differences and assist managers when planning to join foreign corporations.

Determinants of Marketing Performance and Company Performance: The Role of Employee Creativity As Moderating Variable

“…Where the better the network capability, the better the firm performance. This is in accordance with research by Papastamatelou et al (2016) in his research suggests that network capability affects the companies performance in several countries such as China, Turkey, and Germany. So the role of network capability on company performance is affected by culture.…”

Examining network characteristic dynamics of kinship-based families on performance within Indonesian SMEs

“…In general, some studies have found that network centrality (Liu et al , 2011; Kim and Lee, 2018; Das and Goswami, 2019; Wang et al , 2019), network density (Kim and Lee, 2018; Das and Goswami, 2019) and tie strength (Liu et al , 2017; Korir, 2018) have a significant and positive effect on firm performance. However, other studies have found a non-significant relationship between network centrality (Li et al , 2013), network density (AlKuaik et al , 2016) and tie strength (Li et al , 2013; Papastamatelou et al , 2016) on firm performance. Liu et al (2017) further state that the different findings are closely related to contextual or contingency factors, namely, organizational and environmental context.…”

“…Liu et al (2017) further state that the different findings are closely related to contextual or contingency factors, namely, organizational and environmental context. Organizational factors that need to be examined include firm age and size (Bhushan and Pandey, 2015; Papastamatelou et al , 2016; Corredoira and Mcdermott, 2018). Meanwhile, the environmental factor that needs to be examined in relation to the use of closed and open networks is the cultural nature inherent in entrepreneurial activities (Szkudlarek and Wu, 2018).…”

The Role of Networking Capability on Organization Performance: A Perspective of Private Universities in Kenya

“…Networking capability is positively correlated with business performance [11]. It is also alluded that networking capability improves firm performance [18][19].…”

“…In a longitudinal case study of manufacturing firms in New Zealand, the researcher sought to establish the role of business networks in the internationalization of manufacturing firms [29]. Further, a study seeking to determine the networking capability related factors that improved the performance of German, Chinese, and Turkish companies concluded that factors affecting performance varied across countries [18]. On the other hand, it was concluded that in cases of environmental uncertainties, network capability help improve the performance of architectural companies while managerial capability help in the real estate firm's performance [19].…”