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The influence of external network ties on organisational performance: evidence from Japanese manufacturing subsidiaries in Europe
journal contribution
posted on 2023-06-08, 11:28 authored by Norifumi KawaiBy 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.
History
Publication status
- Published
Journal
European Journal of International ManagementISSN
1751-6757Publisher
IndersciencePublisher URL
External DOI
Issue
2Volume
6Page range
221-242Department affiliated with
- Business and Management Publications
Full text available
- No
Peer reviewed?
- Yes
Legacy Posted Date
2012-05-01Usage metrics
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