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Interfirm Relationships (interfirm + relationships)
Selected AbstractsThe Relative Importance of Interfirm Relationships and Knowledge Transfer for New Product Development Success,THE JOURNAL OF PRODUCT INNOVATION MANAGEMENT, Issue 2 2007Mette Praest Knudsen The relationship and network literature has primarily focused on particular partner types, for example, buyer,supplier relationships or competitor interaction. This article explores the nature and relative importance of different types of interfirm relationships for new product development (NPD) success. The underlying premise of the study is that not only the type of interfirm relationships but also the combination of relationships are important for NPD performance. The interaction with a specific type of partner is expected to influence innovative performance by means of appropriate knowledge transfer. Varying needs for external knowledge, and thus types of relationships, are observed depending on the particular stages in the NPD process, the character of the knowledge base of the firm, and the industrial conditions. The absorption of external knowledge is discussed using the degree of redundancy in knowledge, which is defined as the degree of overlap in the knowledge base of the sender and the recipient of knowledge. Hence, the degree of redundancy has direct implications for the ease and, hence, use of knowledge shared with an external partner. The article is based on data from the Know for Innovation survey on innovative activities among European firms, which was carried out in 2000 in seven European countries covering five industries. The article explores the extent of use of external relationships in collaborative product development and finds that customers are involved more frequently in joint development efforts. Second, the industry association of the most important relationship is studied, and the results show that firms tend to partner with firms from their own industry. The danger in this approach is that firms from their own industry tend to contribute similar knowledge, which ultimately may endanger the creation of new knowledge and therefore more radical product developments. The analyses combine the finding that relationships with customers are used most frequently at both early and late stages of the product development process, with a second and more contradictory finding that at the same time customer relationships have a negative impact on innovative success. Moreover, the combination of customers, with both universities and competitors, has a significant negative effect on innovative performance. The potential causes of this apparent paradox can be narrowed down to two: (1) the average customer may be unable to articulate needs for advanced technology-based products; and (2) the average customer may be unable to conceptualize ideas beyond the realm of his or her own experience. Based on this evidence the article cautions product development managers to think explicitly about what certain customers can contribute with and, more importantly, to match this contribution directly with their own sense of what direction product development should go in the future. Finally, the role of complementary as well as supplementary knowledge is investigated for innovative success finding that sharing of supplementary knowledge with external partners in NPD leads to a positive effect on innovative performance. The article is concluded by a discussion of the implication of this finding for building knowledge within the firm and for selecting external partners for NPD. [source] Trust, Transactions, and Information Technologies in the U.S. Logistics IndustryECONOMIC GEOGRAPHY, Issue 2 2007Yuko Aoyama Abstract: How does information technology (IT) alter the organizational dynamics in an industry? In this article, we examine changes in competition and interfirm relations in the U.S. logistics industry, particularly whether "trust-based" interfirm relationships are being substituted by "competition-based" relationships and the rationale for outsourcing. We also examine how new IT tools and outsourcing interact and how logistics contracts, the size of firms, and knowledge lead to integration or disintegration within the industry. The results of our research demonstrate that while the use of IT tools is widespread, traditional trust-based relationships exhibit a considerable resilience in the logistics industry. The industry is also undergoing a complex process of restructuring in response to technological change, on the one hand, and the persistence of geographic and functional specialization, on the other hand. The industry's focus on the delivery of high-quality services, coupled with excess capacity in the industry in the past few years, has contributed to these contradictory trends. As a result, elimination of the middleman has not been as widely observed as expected. [source] Clusters, Power and Place: Inequality and Local Growth in Time,SpaceGEOGRAFISKA ANNALER SERIES B: HUMAN GEOGRAPHY, Issue 2 2002Harald Bathelt The argument of this paper is that a deeper appreciation of the nature of the power relationships between firms and the circuits of power that bind them together is key to understanding how clusters function , including how they might emerge and how they might decline. We begin to develop a conceptualization that allows us to generate a deeper understanding of the processes that enable the production and reproduction of enterprise clusters under some combinations of circumstances but not others. The sections of the paper explore: (1) concepts of power and circuits of power including their spatialities; (2) the temporarily stabilized relationships which occur in clusters of economic activity; (3) the openness and permeability of clusters as a way of understanding conditions that foster cluster growth; (4) a tentative integration of concepts. From this reading of the concepts of clustering and power we draw the conclusion that clusters are, at any particular point in time, temporary and transient conjunctures of interfirm relationships. They depend on specific circumstances in ,time,space' and, because of their very transience and specificity, those conditions might be very difficult if not impossible to create through the blunt instruments of policy. [source] Global networks and the reorganization of production in the clothing industry of post-socialist UkraineGLOBAL NETWORKS, Issue 3 2008CHRISTOS KALANTARIDIS Abstract In this article we examine how processes of globalization and the nature of emerging inter-firm relationships influence the organization of production in a post-socialist region, using the case of the clothing industry in Transcarpathia, Western Ukraine. We combine insights from two perspectives, the global commodity chain approach and the new regionalism. The focus on both institutional setting and interfirm relationships is essential in regions undergoing rapid change. In the article we also use Burt's concept of structural holes and the idea of a competence-difficulty gap to examine the nature of relationships within networks of firms, arguing that global integration can be viewed as a bridging process. The evidence comes from surveys and fieldwork conducted between 1997 and 2004, providing a longitudinal analysis of the same firms. Among other findings, we show that the difficulty of doing business locally may make relationships more stable. With respect to industrial structure, international subcontracting and joint-venture arrangements enable technological modernization in assembly and parts of preassembly, but also result in the demise of high-value added competences. [source] Outsourcing relationships between firms and their training providers: The role of trustHUMAN RESOURCE DEVELOPMENT QUARTERLY, Issue 1 2005Thomas W. Gainey Firms increasingly use external vendors to provide training for their employees. And because trust has been found to be essential in successful interfirm relationships, this study identified a number of factors thought to be associated with both self-interested trust and socially oriented trust between firms and their training suppliers. Using data obtained from 323 organizations, regression analysis suggests that idiosyncratic training, program uncertainty, vendor dependency, contractual specificity, and communication accuracy and frequency were significantly related to higher levels of trust in outsourcing relationships. [source] The Inside Track: On the Important (But Neglected) Role of Customers in the Resource-Based View of Strategy and Firm Growth*JOURNAL OF MANAGEMENT STUDIES, Issue 8 2005Ivo Zander abstract This paper argues for the important role of customers as a source of competitive advantage and firm growth, an issue which has been largely neglected in the resource-based view of the firm. It conceptualizes Penrose's (1959) notion of an ,inside track' and illustrates how in-depth knowledge about established customers combines with joint problem-solving activities and the rapid assimilation of new and previously unexploited skills and resources. It is suggested that the inside track represents a distinct and perhaps underestimated way of generating rents and securing long-term growth. This also implies that the sources of sustainable competitive advantage in important respects can be sought in idiosyncratic interfirm relationships rather than within the firm itself. [source] The Relative Importance of Interfirm Relationships and Knowledge Transfer for New Product Development Success,THE JOURNAL OF PRODUCT INNOVATION MANAGEMENT, Issue 2 2007Mette Praest Knudsen The relationship and network literature has primarily focused on particular partner types, for example, buyer,supplier relationships or competitor interaction. This article explores the nature and relative importance of different types of interfirm relationships for new product development (NPD) success. The underlying premise of the study is that not only the type of interfirm relationships but also the combination of relationships are important for NPD performance. The interaction with a specific type of partner is expected to influence innovative performance by means of appropriate knowledge transfer. Varying needs for external knowledge, and thus types of relationships, are observed depending on the particular stages in the NPD process, the character of the knowledge base of the firm, and the industrial conditions. The absorption of external knowledge is discussed using the degree of redundancy in knowledge, which is defined as the degree of overlap in the knowledge base of the sender and the recipient of knowledge. Hence, the degree of redundancy has direct implications for the ease and, hence, use of knowledge shared with an external partner. The article is based on data from the Know for Innovation survey on innovative activities among European firms, which was carried out in 2000 in seven European countries covering five industries. The article explores the extent of use of external relationships in collaborative product development and finds that customers are involved more frequently in joint development efforts. Second, the industry association of the most important relationship is studied, and the results show that firms tend to partner with firms from their own industry. The danger in this approach is that firms from their own industry tend to contribute similar knowledge, which ultimately may endanger the creation of new knowledge and therefore more radical product developments. The analyses combine the finding that relationships with customers are used most frequently at both early and late stages of the product development process, with a second and more contradictory finding that at the same time customer relationships have a negative impact on innovative success. Moreover, the combination of customers, with both universities and competitors, has a significant negative effect on innovative performance. The potential causes of this apparent paradox can be narrowed down to two: (1) the average customer may be unable to articulate needs for advanced technology-based products; and (2) the average customer may be unable to conceptualize ideas beyond the realm of his or her own experience. Based on this evidence the article cautions product development managers to think explicitly about what certain customers can contribute with and, more importantly, to match this contribution directly with their own sense of what direction product development should go in the future. Finally, the role of complementary as well as supplementary knowledge is investigated for innovative success finding that sharing of supplementary knowledge with external partners in NPD leads to a positive effect on innovative performance. The article is concluded by a discussion of the implication of this finding for building knowledge within the firm and for selecting external partners for NPD. [source] | |||||||||||||