KOREASCHOLAR

This study is concerned with the extent to which network-oriented behaviors directly and/or indirectly affect firm performance. We posit that a firm’s interactive behaviors in relation to an embedded network structure are key mechanisms that facilitate the development of important organizational capabilities in dealing with business partners. Such network-oriented behaviors, which are aimed at affecting the position of a company in the network, are consequently important drivers of firm performance, rather than the network structure alone. We develop a conceptual model that captures network-oriented behaviors as a driving force of firm performance in relation to three other key organizational behaviors, i.e. customer-oriented, competitor-oriented and relationship-oriented behaviors. We test the hypothesized model using a data set of 354 responses collected via an on-line questionnaire from UK managers, whose organizations operate in business-to-business markets in either manufacturing or services sectors. Based on the research results all the hypothesized relationships are supported, except the moderation effect of technological turbulence on the relationship of network-oriented behaviors and relationship portfolio effectiveness. The research results indicate that a firm’s network-oriented behaviors positively impact on the development of customer-oriented and competitor-oriented behaviors. They also foster relationship coordination with its important business partners within the network. In addition, the effective management of the firm’s portfolio of relationships is found to mediate the positive impact of network-oriented behaviors on firm profitability.

• Sabrina C. Thornton(University of Huddersfield Business School)
• Stephan C. Henneberg(University of London)
• Peter Naudé(Manchester Business School)