NETWORKS SYMBIOSIS CAPABILITY AS MEDIATOR BETWEEN STRATEGIC ALLIANCE AND BUSINESS PERFORMANCE: EMPIRICAL STUDY ON IKAT INDUSTRY IN BALI AND EAST NUSA TENGGARA

Year 2017, , 96 - 102, 30.06.2017

Maklon Felipus Killa Norlina R. J. Kalunga Umbu Ho Ara

https://doi.org/10.17261/Pressacademia.2017.464

Abstract

Purpose
-  The trend of increasing
cooperation between companies in the form of strategic partnership is currently
considered as a response to the rapid changes on business environment. However,
there are still contradictions on both the business phenomenon and the research
result. Therefore, the purpose of this research is to examine the mediating
role of networks symbiosis capability in bridging the relationship of strategic
alliance and business performance

Methodology
- The population of this research are tenun ikat businesses in the province
of East Nusa Tenggara and Bali. The samples are 200 respondents in the Region
of Sumba Timur, Kota Madya Kupang, Region of Gianyar and Klungkung. Data were
collected with the use of questionnaires and analyzed using structural equation
analysis with AMOS V.21.

Findings- The results
show that the strategic alliances built by ikat businesses have no impact on
the improvement of business performance. However, the network symbiosis
capability plays a significant mediating role in bridging the relationship
between strategic alliances and business performance. 

Conclusion- Strategically,  SMEs can improve business performance by
developing the network symbiosis capability as a resource for their companies. 

Keywords

Strategic alliance, network symbiosis capability, resource dimension, business performance

References

• Avlonitis, George J., & Helen E. Salavou, (2007) Entrepreneurial Orientation of SMEs, product innovativeness, and performance, Journal of Business Research, Vol. 60., pp.566-575
• Barabel, Michael., & Meier, Oliver (2010) Combining resources and innovation: symbiosis acquisition, Gestion2000, No. 5., pp. 77-90.
• Bordonaba-Juste, M. Victoria., & Yolanda Polo-Redondo, (2008) Differencess between short and long-term relationship: An empirical analysis in franchise system, Journal of Strategic Marketing, Vol. 16., No. 4., pp. 327-354
• Camison, Cesar., Montserrat Boronat, & Ana Villar (2010) Technical Strategic Alliances and Performance: The Mediating Effect of Knowledge-Based Competencies, Journal of Strategic Management Education, Vol. 6., No. 1.
• Cao, Mie., & Qingyu Zhang, (2011) Supply chain collaboration: Impact on collaborative advantage and firm performance, Journal of Opperations Management, Vol. 29., pp.163-180
• Capaldo, Antonio, (2007) Network structure and innovation: The leveraging of a dual network as a distinctive relational capability, Strategic Management Journal, Vol. 28., pp. 585-608
• Chen, Tser-Yieth., Hsiang-His Liu, & Wei-Lan Hsieh, (2009) The influence of partner characteristics and relationship capital on the performance of international strategic alliance, Journal of Relationship Marketing, Vol. 8., pp. 231-252
• Czakon, Wojciech, (2009) Relational Capabilities of Organizational – Theoritical Advances, Journal of Economics & Management, Vol. 5., pp. 47-65
• Culpan, Refik (2008) The Role of Strategic Alliances in Gaining Sustainable Competitive Advantage for Firms, Management Revue, Vol. 19., No.1., pp. 94-105
• Di Cagno, Daniela., & Emanuela Sciubba, (2010) Trust, trustworthiness and social networks: Playing a trust game when networks are formed in the lab, Journal of Economic Behaviour and Organizations, Vol. 75., pp. 156-167
• Eapen, A. (2012). Social structure and technology spillovers from foreign to domestic firms. Journal of International Business Studies, Vol. 43., No.3., pp. 244–263.
• Fedinand, Augusty, (2014) Metode Penelitian Manajemen: Pedoman Penelitian untuk Penulisan Skripsi, Tesis, dan Disertasi Ilmu Manajemen, Edisi Ketiga, BP Undip, Semarang
• Ferdinand, Augusty & Maklon F. Killa (2014) A Study on Backward Business Partner Networking Advantage and Pareto Distribution Network Accessibility as a Bridging Process for Marketing Performance: Indonesian Evidence, Proceedings of the 14th Euroasia Business and Economics Society Conference - Barcelona
• Ferer, Mario., Paul Hyland., & Phil Bretherton, (2009) The role of relational capabilities in developing the capacity for supply chain innovation, Proceedings of the 7th ANZAM Operation, Supply Chain and Service Management Symposium.
• Forrest, Janet E. (1990) Strategic Alliances and The Small Technology-Based Firm, Journal of Small Business Management, Juli, pp. 3745.
• Fulford, Heather., & Alex Rizzo, (2009) A Conceptual Model for The Strategic Orientation of Small Firms, Journal of Enterprising Culture, Vol. 17., No. 1., pp. 25-54.
• Goerzen, Anthony. (2007) Alliance Networks and Firm Performance: The Impact of Repeated Partnerships, Strategic Management Journal, Vol. 28, pp. 487-509.
• Gulati, Ranjay., Nitin Nohria., & Akbar Zaheer, (2000) Strategic Networks, Strategic Management Journal, Vol. 21., pp.203-215
• Jiang, Ruihua J., Tao, Oingjiu T., & Santoro, Michael D (2010) Alliance portfolio diversity and firm performance, Strategic Management Journal, Vol. 31, pp. 1136-1144.
• Koka, B. R., & Prescott, J. E. (2002). Strategic alliances as social capital: A multidimensional view. Strategic Management Journal, 23(9), 795.
• Lages, Luis Filipe., Graca Silva, & Chris Styles (2009) Relationship Capabilities, Quality, and Innovation as Determinants of Export Performance, Journal of International Marketing, Vol. 17., No. 4., pp. 47-70.
• Lavie, Dovev (2006) The competitive advantage of interconnected firms: An extension of the resource-based view, Academy of Management Review, Vol. 31., No. 3., pp.638-658
• Lavie, Dovev (2007) Alliance portfolios and firm performance: A study of value creation and appropriation in the U.S. software industry, Strategic Management Journal, Vol. 28, pp., 1187-1212.
• Lee, Cheng-Wen, (2007) Strategic Alliance Influence on Small and Medium Firm Performance, Journal of Business Research, Vol. 60., pp. 731-741.
• Lin, Zhiang., Haibin Yang., & Binhu Arya, (2009) Alliance Partners and Firm Performance: Resource Complementary and Status Association, Strategic Management Journal, Vol. 30, pp. 921-940
• Lisboa, Ana., Skarmeas Dionysis., & Carmen Lages, (2011) Entrepreneurial orientation, explorative and exploitation capabilities, and performance outcomes in export market: A resource-based approach, Industrial Marketing Management, Vol. 40., pp.1274-1284
• Lofsten, Hans., & Peter Lindelof, (2005) R&D networks and product innovation patterns – academic and non-academic new technologybased firms on Science Parks, Technovation, Vol. 25., pp. 1025-1037.
• Möller, K., Rajala, A. & Svahn, S. (2005) ”Strategic business nets – their type and management”, Journal of Business Research, Vol. 58, pp. 1274–1284.
• Mort Sullivan, G. & Weerawardena, J. (2006). “Networking capability and international entrepreneurship. How netwoks function in Australian born global firms”, International Marketing Review, Vol 23., No 5, pp. 549–572.
• Murray, Janet Y., & Masaaki Kotabe. (2005) Performance implication of strategic fit between alliance attributes and alliance forms, Journal of Business Research, Vol. 58, pp.1525-1533.
• Oliver, Jose L. Hervas., & Jose Albors, (2008) Absorption capacity, internal and relational capabilities in clusters: When distance and embeddedness are not enough to explain firm innovation, JEL - codes: O18, O18, O31
• Sarkar, MB., Raj Echambadi, & Jeffrey S. Harrison, (2001) Alliance Entrepreneurship and Firm Market Performance, Strategic Management Journal, Vol. 22, pp. 701-711.
• Swan, Jacky., Anna Goussevskaia, Sue Newell, Maxine Robertson, Mike Bresnen, & Ademola Obembe, (2007) Modes of organizing biomedical innovation in the UK and US and the role of integrative and relational capabilities, Research Policy, Vol. 36., pp. 529-547.
• Ritter, Thomas., & Hans G. Gemuden, (2004) The impact of a company’s business strategy on its technological competence, network competence and innovation success, Journal of Business Research, Vol. 57., pp. 548-556.
• Teng, Bing-Sheng, (2007) Corporate Entrepreneurship Activities through Strategic Alliances: A Resource-Based Approach toward Competitive Advantage, Journal of Management Studies, Vol. 44, No. 1., pp. 120-142.
• Tsai, Kuen-Huang., (2009) Collaborative networks and product innovation performance: Toward a contingency perspective, Research Policy, Vol. 38., pp. 765-778.
• Veilleux, Sophie., Nancy Haskell & Frank Pons, (2012),"Going global: how smaller enterprises benefit from strategic alliances", Journal of Business Strategy, Vol. 33 No 5 pp. 22 – 31
• Wang, Catherine L., (2008) Entrepreneurial Orientation, Learning Orientation, and Firm Performance, Entrepreneurship Theory and Practice, Juli, pp. 635-657.
• Wiklund, Johan (1999) The Sustainability of the Entrepreneurial Orientation-Performance Relationship, Entrepreneurships Theory and Practice, Fall, pp. 37-48.
• Yan, Yani., Sophie Hua Zhang., & Fue Zeng (2010) The exploitation of an international firm’s relational capabilities: an empirical study, Journal of Strategic Management, Vol. 18., No.6., pp.473-487.
• Zhao, Fang, (2014),"A holistic and integrated approach to theorizing strategic alliances of small and medium-sized enterprises", Business Process Management Journal, Vol. 20 No. 6 pp. 887 – 905.