Networks are assumed to enhance small firms' performance and competitiveness. Research indicates that there are various sources of value that could derive from networks, such as cost and time efficiency, quality improvement, flexibility and innovation. However, in most cases these values are associated with a general framework of what Information Communication Technologies (ICT) and network models are supposed to offer to small and medium enterprises (SMEs) and their participating actors. Little empirical research has focused on the real value that participating firms can appropriate and create. Based on an empirical study involving SMEs, this paper analyses the value that SMEs can create and/or appropriate by participating in networks and the extent to which value creation depends on factors such as absorptive capability and social capital. This study demonstrates that SMEs can create and appropriate a great deal of value when they become an integral part of network systems. However, factors such as absorptive capacity and social capital need to be taken into consideration, since they greatly impact and affect the capability of firms to create and appropriate value. It is argued that in order to create and appropriate value through networks, they need to emphasize knowledge assimilation and sharing as well as creating continuous learning capability.
Evaluating the network's value creation and its dependence on absorptive capacity and social capital factors
Passiante G.;Ndou V.
2006-01-01
Abstract
Networks are assumed to enhance small firms' performance and competitiveness. Research indicates that there are various sources of value that could derive from networks, such as cost and time efficiency, quality improvement, flexibility and innovation. However, in most cases these values are associated with a general framework of what Information Communication Technologies (ICT) and network models are supposed to offer to small and medium enterprises (SMEs) and their participating actors. Little empirical research has focused on the real value that participating firms can appropriate and create. Based on an empirical study involving SMEs, this paper analyses the value that SMEs can create and/or appropriate by participating in networks and the extent to which value creation depends on factors such as absorptive capability and social capital. This study demonstrates that SMEs can create and appropriate a great deal of value when they become an integral part of network systems. However, factors such as absorptive capacity and social capital need to be taken into consideration, since they greatly impact and affect the capability of firms to create and appropriate value. It is argued that in order to create and appropriate value through networks, they need to emphasize knowledge assimilation and sharing as well as creating continuous learning capability.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
