The influence of external network ties on organisational performance: evidence from Japanese manufacturing subsidiaries in Europe

Kawai, Norifumi (2012) The influence of external network ties on organisational performance: evidence from Japanese manufacturing subsidiaries in Europe. European Journal of International Management, 6 (2). pp. 221-242. ISSN 1751-6757

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Abstract

By extending Dyer and Singh's relational view of the firm, this paper aims to expand upon the knowledge of the impact of external network ties on firm performance. Using a sample of 85 Japanese manufacturing subsidiaries operating in the European market, the findings of this study reveal that network ties with local firms have a significant impact on firm performance. The empirical results also show that cost leadership, firm size and ownership structure play key roles in enhancing firm performance. One major practical implication is the importance of managers paying attention to types of network ties. As the empirical results of this study suggest, firms fostering close network ties with indigenous business actors rather than with political interest groups can achieve successful organisational performance in the European market. Another important implication is that developing relational capital only is not sufficient to explain the level of organisational performance. Managers need to pay much attention to the relationship between firm-level strategic choices and the success of multinational business activities.

Item Type: Article
Keywords: external network ties; strategic orientation; firm performance; Japan; organisational performance; Japanese manufacturing subsidiaries; Europe; cost leadership; firm size; ownership structure; business networks.
Schools and Departments: School of Business, Management and Economics > Business and Management
Subjects: H Social Sciences > HF Commerce > HF5001 Business
Depositing User: Catrina Hey
Date Deposited: 01 May 2012 13:47
Last Modified: 01 May 2012 13:47
URI: http://sro.sussex.ac.uk/id/eprint/38910
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