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Position in inter-organizational networks and profitability and growth potential

Author

Listed:
  • Fumihiko Isada

    (Kansai University)

Abstract

The purpose of this study is to empirically clarify the relationship between a company?s position in the network structure of inter-company collaboration and its profitability and growth potential. In particular, by categorizing and analyzing companies located at the center of the network, we attempted to gain insight into the generation and growth process of so-called platformer companies. According to previous research, companies that are at the center of collaboration among various companies vary by industry and product characteristics. This research focuses on the Internet of Things (IoT), which is an industry in which inter-business relationships are important for collecting and utilizing big data across industries as an object of analysis. As a research method, we extracted the text information of newspaper articles related to IoT and analyzed the transition of the relationship between companies using social network analysis. Network analysis based on newspaper article data showed the possibility of one process to grow from a niche company to a platform leader and eventually to a large company.

Suggested Citation

  • Fumihiko Isada, 2020. "Position in inter-organizational networks and profitability and growth potential," International Journal of Business and Management, International Institute of Social and Economic Sciences, vol. 8(2), pages 73-85, November.
    • Handle: RePEc:sek:jijobm:v:8:y:2020:i:2:p:73-85
    as

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    References listed on IDEAS

    as
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    3. Balagopal Vissa & Aya S. Chacar, 2009. "Leveraging ties: the contingent value of entrepreneurial teams' external advice networks on Indian software venture performance," Strategic Management Journal, Wiley Blackwell, vol. 30(11), pages 1179-1191, November.
    4. Katz, Michael L & Shapiro, Carl, 1985. "Network Externalities, Competition, and Compatibility," American Economic Review, American Economic Association, vol. 75(3), pages 424-440, June.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Inter-organizational network; Platform leadership; Business Ecosystem; Social network analysis; Internet of Things;
    All these keywords.

    JEL classification:

    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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