Martin Pech, Ing., Ph.D., Senior Assistant Professor, University of South Bohemia in České Budějovice/Faculty of Economics/Department of Management, Studentská 13, 370 05 České Budějovice, Czech Republic, email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Drahoš Vaněček, Prof., Ing., CSc., Professor, University of South Bohemia in České Budějovice/Faculty of Economics/Department of Management, Studentská 13, 370 05 České Budějovice, Czech Republic, email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Jaroslava Pražáková, Ing., Ph.D., Senior Assistant Professor, University of South Bohemia in České Budějovice/Faculty of Economics/Department of Accounting and Finances, Studentská 13, 370 05 České Budějovice, Czech Republic, email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Abstract
PURPOSE: Current research seeks to create an economic model that connects strategic management and network theory. However, most theoretical models do not provide empirical evidence of network relationships’ real structure and attributes. The purpose of the paper is to explore the relation between enterprise characteristics and the characteristics of buyer–supplier relationships in supply chain networks. We are specifically interested in business relationships in networks with respect to the various enterprises’ sizes and sectors of industry. The subject of our research was characteristics, such as network relationship complexity, continuity of relationships, and strategic management in networks. The paper summarizes the results of an empirical study on buyer-supplier networks and accentuates the importance of developing and fostering business collaboration for strategic management. METHODOLOGY: We conducted the questionnaire research in 2016–2019 on 360 enterprises from the Czech Republic. We selected the research sample based on the non-probability purposive sampling method. The members of the research team collected data from an online survey and personal visits to enterprises. The statistical analysis of hypotheses is based on the frequency of managers’ answers. To evaluate results, a two-proportion Z-Test is used for comparing different categories of enterprises according to their enterprise size or prevailing sector of the industry. FINDINGS: The main results show that the differences between enterprises involved in the buyer–supplier structures lie mainly in their size. The survey did not identify differences between industry sectors. The findings show that the complexity of networks in the Czech Republic is not high in terms of the number of suppliers or involvement in many supply networks. The continuity of relationships with partners in buyer–supplier networks is relatively long-term oriented. Long-term partnerships reflect the higher quality of relationships and support future integration. However, large enterprises prefer to build contracts for shorter or longer periods. An overall decentralization strategy characterizes the strategic management of buyer–supplier networks. This finding means dividing competencies such as planning, managing, sourcing, decision-making, transporting (delivering) among more enterprises. IMPLICATIONS FOR THEORY AND PRACTICE: The paper provides an insight into understanding how the buyer–supplier network functions. The theory’s implication builds on the connection of supply chain management and strategic management from the network perspective. Supply chain management is viewed as a part of strategic management, and the synthesis of both research areas opens an innovative view to business theory. ORIGINALITY AND VALUE: The paper’s principal value is the connection between contemporary ideas of strategic management and supply chain management. The synthesis of supply chain management and network approach enhances strategic management theory.
Keywords: network, buyer–supplier relationships, strategic management, complexity, continuity, supply chain management
Jesse Karjalainen, D.Sc. (Tech.), Researcher, Aalto University School of Science, Department of Industrial Engineering and Management, P.O. Box 11000, FI-00076 Aalto, Finland, email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Aku Valtakoski, Ph.D., Senior Lecturer, Linköping University, Department of Management and Engineering, SE-581 83 Linköping, Sweden, email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Ilkka Kauranen, D.Sc. (Tech.), Professor Emeritus, Aalto University School of Science, Department of Industrial Engineering and Management, P.O. Box 11000, FI-00076 Aalto, Finland, email: This email address is being protected from spambots. You need JavaScript enabled to view it.
Abstract
PURPOSE: The objective of this paper is to propose a concept of network resource distribution that systematically unifies the resource-based and network-based perspectives on interfirm networks and enables integrated analysis of how firm resources and network structure interact to affect firm performance. METHODOLOGY: This conceptual paper first reviews the extant literature on interfirm networks and then develops the unifying concept of network resource distribution. FINDINGS: The literature review indicates that strategy scholars have long sought to integrate the resource-based view and the social network explanations of firm performance but, thus far, only a partial integration has been achieved. In particular, studies on the resource-level heterogeneity of interfirm networks have largely been limited to the analysis of firm dyads. How firm resources and network structure beyond the immediate network partners interact to affect firm performance has not yet been adequately addressed. The proposed unified concept of network resource distribution systematizes prior research and illuminates how network structure and firm resources interact to affect firm performance beyond the immediate network partners. IMPLICATIONS FOR THEORY AND PRACTICE: For theory, this paper highlights gaps in the extant literature on interfirm networks and proposes a unifying concept that can be utilized to address these gaps and to develop further theory in the area. For practice, this paper encourages managers not to limit their analyses of strategic alliances to immediate partnerships; it is also crucial to consider the partners and their resources, and reflect on how they are related to one another outside of the immediate partnership portfolio. ORIGINALITY AND VALUE: Network resource distribution is a novel concept that ties together and systematizes various strands of research on interfirm networks, thus providing a foundation for future research in the area. The concept is also amenable to detailed operationalization, facilitating subsequent quantitative testing of theoretical arguments combining firm resources and the structure of a network.
Keywords: resource-based view, strategic networks, interorganizational relations, alliances, firm performance