Inter-organizational Network and Firm Performance: The Case of the Bicycle Industry in Taiwan

Author: Samson Wong Yue-Ming

Source: Asian Business & Management, Volume 4, Number 1, March 2005 , pp. 67-91(25)

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Abstract:

The management of inter-firm networks is of paramount importance in the study of company performance. In this paper, we attempt to provide a better understanding of how the competencies of firms in an emerging market may be strengthened through the assiduous manipulation of network relationships. Using research data on 52 firms in the bicycle industry of Taiwan, we explore whether involvement in strategic network organizations can be a valuable aid to competitiveness. In particular, we find that company performance benefits from strong network functions in the technology and marketing made available by such inter-firm relationships. Our findings confirm that those producers with more collaborations with other firms within their industry perform better than otherwise comparable firms with fewer cooperative activities. Consistent with our argument within the supplier–buyer relationship in the industry, our statistical analyses also suggest that suppliers retain a more proactive strategic behaviour in managing business networks than buyers.Asian Business & Management (2005) 4, 67–91. doi:10.1057/palgrave.abm.9200119

Document Type: Research article

DOI: http://dx.doi.org/10.1057/palgrave.abm.9200119

Affiliations: 1: Graduate School of International Development, Nagoya University, Furo-cho, Chikusa-ku, Nagoya 464-8601, Japan., Email: m000103d@mbox.nagoya-u.ac.jp

Publication date: 2005-03-01