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Network competence based on resource-based view and resource dependence theory

Author

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  • Shehnaz Tehseen
  • Sulaiman Sajilan

Abstract

The Resource-Based View (RBV) acknowledges that firms' resources contribute a lot to achieve competitive advantage. Therefore, it is critical to gain necessary resources to become more competitive relative to their competitors. Thus, network competence is the mechanism for firms to gain crucial resources. Based on Resource Dependence Theory (RDT), firms have to develop and maintain the relationships with their customers, suppliers and other relevant organisations to achieve important resources. By recognising the important role of network competence in achieving business success, this study aims to improve understanding of the concept of network competence and its relationship with the RBV and RDT, types of networking and their contributions towards small firms' business success. This paper concludes that network competence is an important organisational capability that leads towards competitive advantage and the firm's success. Thus, it is strongly recommended for firms to develop this competence to obtain critical resources for their businesses.

Suggested Citation

  • Shehnaz Tehseen & Sulaiman Sajilan, 2016. "Network competence based on resource-based view and resource dependence theory," International Journal of Trade and Global Markets, Inderscience Enterprises Ltd, vol. 9(1), pages 60-82.
    • Handle: RePEc:ids:ijtrgm:v:9:y:2016:i:1:p:60-82
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    Citations

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    Cited by:

    1. Danik Lidia & Mirońska Dominika, 2022. "Who gains more from networking? A comparative study of Polish exporting and non-exporting SMEs," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 58(1), pages 64-79, March.
    2. Ayman Abu-Rumman & Ata Shraah & Faisal Al-Madi & Tasneem Alfalah, 2021. "Entrepreneurial networks, entrepreneurial orientation, and performance of small and medium enterprises: are dynamic capabilities the missing link?," Journal of Innovation and Entrepreneurship, Springer, vol. 10(1), pages 1-16, December.
    3. Eduardo Sánchez-García & Bartolomé Marco-Lajara & Pedro Seva-Larrosa & Javier Martínez-Falcó, 2022. "Driving Innovation by Managing Entrepreneurial Orientation, Cooperation and Learning for the Sustainability of Companies in the Energy Sector," Sustainability, MDPI, vol. 14(24), pages 1-17, December.
    4. Chi Zhang & Qingjun Zeng & Charles Chen & Stavros Sindakis & Sakshi Aggarwal & Nipun Dhaulta, 2023. "The Strategic Resources and Competitive Performance of Family-Owned and Non-Family-Owned Firms in the Retail Business of Los Angeles," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(1), pages 327-355, March.
    5. Rachael Wambui & Stephen Muathe, 2023. "From Attention to Action: Entrepreneurial Networks and Performance of Women-Owned Enterprises: A Theoretical Review," International Journal of Business and Management, Canadian Center of Science and Education, vol. 16(2), pages 1-82, February.

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