The role of entry nodes in industrial firms’ internationalization: the significance of network structures for value innovation

Abstract

Purpose The paper explores the links between network structures and internationalization, conceptualized as a process of value innovation. The exploration sets off from the concept of an entry node, i.e. whether network entrance is facilitated by a direct dyadic or an indirect triadic relationship. Design/methodology/approach The paper is mainly conceptual, but also presents an empirical cross-border actor constellation which highlights the implications of the study. Findings Bi-directionality implies that value innovation is contingent on the fit between the actors involved in the entry node, not on the fulfilment of the needs of a focal actor. Further, the attractiveness of an entry node depends on network structures, the network positions of the actors in the entry node, the desired outcomes of entry (immersion or reach), and the actual behavior of the actors. The dynamics of transitivity can influence triadic entry nodes. However, transitivity operates differently in business networks than in social networks constituted by inter-personal ties. Therefore, closure of open triadic entry nodes is neither an automatic outcome of strong ties, nor a normatively better outcome. Research limitations/implications The theorizing offered by this paper must be further explored in different empirical contexts to assess its practical adequacy. Still, the presented empirical case indicates that the expected attractiveness of entry nodes is closely linked to (in)transitivity. Originality/value The paper supports the relevance of expanding from a dyadic to a network perspective in order to capture the dynamics of value innovation in an international setting.

The influence of brokers on networking behaviour during internationalization: a study of Czech SMEs

“…Brokers can help to fill the structural gaps in the dyadic structure; however, this is not always the case. Most of the previous studies mentioned the positive effects of brokers (Leppaaho and Pajunen, 2018;Vedel and Servais, 2019), but only a few highlighted that brokers could be ineffective or even detrimental for networking (Woo, 2020;Yeniyurt and Carnovale, 2017). Findings from this research might explain why sometimes brokers are ineffective and can negatively affect networking.…”

“…Brokers help firms by filling structural gaps in the network structure, although the research studies do not differentiate which type of broker is more useful in accessing information (Tzou, 2017). More specifically, the broker can bridge the structural gaps in the dyadic structure of the network to further assimilate information (Vedel and Servais, 2019). Subsequently, this helps to configure the overall network size and diversity (Rubino et al, 2018).…”

Customer reference marketing in internationalizing SMEs: a service perspective

“…Entry nodes will allow companies to immerse themselves in relevant network structures and grant them insidership (Hilmersson and Jansson, 2011; Sandberg, 2013). A recent study by Vedel and Servais (2019) suggests that the actual benefits provided by entry nodes depend on the fit between suppliers and customers in relevant organizational and strategic dimensions.…”

Structural network embeddedness and firm incremental innovation capability: the moderating role of technology cluster

“…The social network theory (SNT) has been developed by researchers who accounted for relational and behavioral justifications of economics actions and examined the potential of social ties (Kim, 2014). A core principle of SNT is that firms are embedded in a larger network of relationships, comprising other firms that are able to provide access to unique resources and information (Vedel and Servais, 2019;Wang et al, 2018).…”