Identifying the network capabilities of large and small companies in the process of formation and development of innovation networks

Document Type : Research

Authors

1 Department of Technology Management and Entrepreneurship, Allameh Tabataba'i University

2 Associate Professor, Department of Technology Management and Entrepreneurship, Allameh Tabataba'i University

3 Professor, Department of Technology Management, Malek Ashtar University of Technology, Tehran. Iran

4 Associate Professor, Department of Technology Management and Entrepreneurship, Allameh Tabataba'i University, Tehran. Iran

5 Associate Professor, Department of Industrial Management, Allameh Tabataba'i University, Tehran. Iran

Abstract

 Introduction: One of the most important fields of biotechnology is the pharmaceutical industry, which is of special importance due to its intertwining with public health. Biomedicines, in the production of which biotechnology has been used. They are known as targeted drugs to treat patients in difficult medical conditions. Networks, as a special type of communication, connect a set of people, objects or events and are a very good model for corporate communication.  Innovation networks include government, research and industrial institutions working together for a common innovation goal. Companies need networking capabilities to make the most of the networking platform and benefit from external resources, capabilities, and knowledge streams. The purpose of this study is to identify the types of network capabilities of large and small firms in the biopharmaceutical networks of the country
Methodology: The present study is an applied-descriptive research. The research method used in this research is a combination and research strategy of thematic analysis and confirmatory factor analysis. In this research, first, the literature and theoretical foundations and some existing documents in the field of biopharmaceutical companies were reviewed, and in the second step, in order to complete the data, in-depth qualitative interviews were conducted with 15 experts in government, academia and industry. Sampling in this section has been judgmental and purposeful. Regarding sample size, sampling continued until the theoretical saturation stage. Accordingly, after the fifteenth interview, no new data and information were identified by the researchers, and in fact, the coding process took place until the realization of theoretical adequacy. The interviews were conducted in a semi-structured manner and without directing the interviewee in person. Given that the statistical population of the research in the second phase, biopharmaceutical companies are active in innovation networks, the number of companies is equal to 70 companies and the sample size was determined based on Morgan table equal to 58 companies. 60 questionnaires were distributed among bio-pharmaceutical companies and finally 32 questionnaires that could be analyzed were received.
Results and DiscussionIn this research, observing the ethical principles of qualitative research, the text of the interviews was transcribed and by carefully studying these texts, open coding was done sentence by sentence. The concepts and codes extracted, considering the duplicate codes, are 37 items, which were reduced to 9 sub-themes in the first step and four sub-themes in the second step by categorizing similar and well-understood items, and finally, According to the research findings, network capabilities can be divided into two categories: general capabilities of active presence in the network and networking or network management capabilities. The results of confirmatory factor analysis show that "active presence in the network" is more related to the network capabilities of companies than "network management" in terms of factor load. Also, other findings obtained from factor analysis show that among all the dimensions related to the network capabilities of companies, extra-organizational capabilities have the highest priority. Findings also show that small firms have more general capabilities of active presence in the network and network management capability is related to larger firms, which are often known as hub.
 Conclusion: In general, the role of large and central companies (hubs) is very important in networks, both during and after their formation. In fact, the networks studied in the country show that in the field of biopharmaceuticals, networks have been formed around these companies and have continued their activities and even expanded their activities, and considering the recent significant developments. In this area, the findings of this study can be a good model for other technological areas and provide useful lessons for companies. For future research, it is suggested that the role of corporate network capabilities, including general capabilities and managerial and orchestral capabilities in the development of corporate performance and outputs in innovation networks in other areas. To be examined technologically. Another suggestion of the research is to investigate the role of effective variables in the development of corporate network capabilities in networks and according to the theories of relationship between industry and academia, followed by the three-helix theory of the role of regulatory institutions. And the facilitator should be considered in the networks. It is also suggested that the challenges of corporate cooperation in innovation networks and how the role of network capabilities in solving them be examined.

Keywords


  1. Aarikka-Stenroos, L., Sandberg, B., & Lehtimäki, T. (2014). Networks for the commercialization of innovations: A review of how divergent network actors contribute. Industrial Marketing Management, 43(3), 365-381.
  2. Alinaghian, L., & Razmdoost, K. (2018). How do network resources affect firms' network-oriented dynamic capabilities? Industrial Marketing Management, 71, 79-94.  
  3. Asadifard, R., Mazarei, S. (2019). Analyzing the Intra-Network Relationships of the Members of Science and Technology Collaborative Networks Using Social Networks Analysis (Case of Study: Iran Nanotechnology Laboratory Network). Public Policy, 5(1), 117-145.
  4. Aujirpongpan, S., & Hareebin, Y. (2020). The effect of strategic intuition, business analytic, networking capabilities and dynamic strategy on innovation performance: The empirical study Thai processed food exporters. The Journal of Asian Finance, Economics, and Business, 7(1), 259-268.  
  5. Bai, O., & Wei, J. (2019). Alliance management capability of entrepreneurial nonprofit organizations and cross-sector alliance performance: an fsQCA approach. IEEE International Symposium on Innovation and Entrepreneurship (TEMS-ISIE) .1-8.
  6. Belderbos, R., Carree, M., Diederen, B., Lokshin, B., & Veugelers, R. (2004). Heterogeneity in R&D cooperation strategies. International journal of industrial organization, 22(8-9), 1237-1263.
  7. Bianchi, M., Cavaliere, A., Chiaroni, D., Frattini, F., & Chiesa, V. (2011). Organisational modes for Open Innovation in the bio-pharmaceutical industry: An exploratory analysis. Technovation, 31(1), 22-33.
  8. Bohlmann, J. D., Calantone, R. J., & Zhao, M. (2010). The effects of market network heterogeneity on innovation diffusion: An agent‐based modeling approach. Journal of Product Innovation Management, 27(5), 741-760.
  9. Büchel, B., & Raub, S. (2002). Building knowledge-creating value networks. European Management Journal, 20(6), 587-596.
  10. Shih-Hsin (2014). Knowledge Transfer and Innovation Networks in the Taiwanese Biopharmaceutical Innovation System. Thesis Submitted to the University of Nottingham for the Degree of Doctor of Philosophy.
  11. Cabanelas, P., Omil, J. C., & Vázquez, X. H. (2013). A methodology for the construction of dynamic capabilities in industrial networks: The role of border agents. Industrial Marketing Management, 42(6), 992-1003.
  12. Chuluun, T., Prevost, A., & Upadhyay, A. (2017). Firm network structure and innovation. Journal of Corporate Finance, 44, 193-214.
  13. Cowan, R., & Jonard, N. (2004). Network structure and the diffusion of knowledge. Journal of economic Dynamics and Control, 28(8), 1557-1575.
  14. Corsaro, D., Ramos, C., Henneberg, S. C., & Naudé, P. (2012). The impact of network configurations on value constellations in business markets—The case of an innovation network. Industrial Marketing Management, 41(1), 54-67.
  15. Corsaro, D., Cantù, C., & Tunisini, A. (2015). Actors' heterogeneity in innovation networks. Industrial Marketing Management, 41(5), 780-789.
  16. Dhanaraj, C., & Parkhe, A. (2006). Orchestrating innovation networks. Academy of management review, 31(3), 659-669.
  17. Dhir, S., Aniruddha, & Mital, A. (2014). Alliance network heterogeneity, absorptive capacity and innovation performance: a framework for mediation and moderation effects. International Journal of Strategic Business Alliances, 3(2-3), 168-178.
  18. Dosi, G., & Nelson, R. R. (2010). Technical change and industrial dynamics as evolutionary processes. In Handbook of the Economics of Innovation, Vol. 1. 51-127.
  19. Eiriz, V.Gonçalves, M.and Areias, J.S. (2017), "Inter-organizational learning within an institutional knowledge network: A case study in the textile and clothing industry", European Journal of Innovation Management, Vol. 20 No. 2, pp. 230-249.
  20. Frenz, M., & Ietto-Gillies, G. (2009). The impact on innovation performance of different sources of knowledge: Evidence from the UK Community Innovation Survey. Research policy, 38(7), 1125-1135.
  21. Forkmann, S., Henneberg, S. C., & Mitrega, M. (2018), Capabilities in business relationships and networks: Research recommendations and directions, Industrial Marketing Management, 74, 4-26.
  22. Fritsch, M., & Kauffeld-Monz, M. (2010). The impact of network structure on knowledge transfer: an application of social network analysis in the context of regional innovation networks. The Annals of Regional Science, 44(1), 21.
  23. Gardet, E., & Mothe, C. (2012). SME dependence and coordination in innovation networks. Journal of Small Business and Enterprise Development, 19(2), 263-280.
  24. Gausdal, A. H., & Nilsen, E. R. (2011). Orchestrating innovative SME networks. The case of “HealthInnovation”. Journal of the Knowledge Economy, 2(4), 586-600.
  25. Hogenhuis, B. N., Van Den Hende, E. A., & Hultink, E. J. (2017). Unlocking the innovation potential in large firms through timely and meaningful interactions with young ventures. International Journal of Innovation Management, 21(01), 1750009.
  26. Hurmelinna-Laukkanen, P., & Nätti, S. (2018). Orchestrator types, roles and capabilities–A framework for innovation networks. Industrial Marketing Management, 74, 65-78.
  27. Kargar Shahamat, B., Taghva, M., Tabtabaiean, S. (2017). Functions of Innovation Network: An Analysis of Technological Learning in Iran’s Pharmaceutical Sector. Journal of Technology Development Management, 5(2), 9-39.
  28. Kim, Y., & Lui, S. S. (2015). The impacts of external network and business group on innovation: Do the types of innovation matter? Journal of Business Research, 68(9), 1964-1973.
  29. Kim, J., & Yoo, J. (2019). Platform growth model: The four stages of growth model. Sustainability, 11(20), 5562.
  30. Martin, E.T., Nolte, I., & Vitolo, E. (2016). The Four Cs of disaster partnering: communication. coordination and collaboration. Disasters, 40 (4), 621-643.
  31. Mashhadi Hajiali, F., Alvani, S., Kameli, M., Memarzade Tehran, G. (2020). Analysis of the Types of Collaboration Networks in the Defense Innovation Process. Management Researches, 13(47), 5-30.
  32. Mitrega, M., & Pfajfar, G. (2015). Business relationship process management as company dynamic capability improving relationship portfolio. Industrial marketing management, 46, 193-203.
  33. Moazzez, H., Torabi Khargh, M., Nilforoushan, H., Sahebkar Khorasani, S. (2018). Identifying and analyzing challenges of forming of the engineered collaboration network (a Case study of collaboration network of Poyandeghan Rah Saadat). Innovation Management Journal, 7(3), 85-112.
  34. Mohammadi, M., Hamidi, M., Mahmoudi, B., Javadi, S. (2015). Identifying, Analyzing and Categorizing Factors Affecting the Formation of Innovation Networks in Knowledge-Based Firms: A Case Study of the University of Tehran Science and Technology Park. Innovation Management Journal, 3(4), 1-24.
  35. Mohammadian, A., Khodadad Beromy, M. (2020). Explaining the Process of Forming a Network Capability in Governmental Organizations in the Case of Iran Single Window for Trade Using Grounded Theory. Journal of Public Administration, 12(1), 88-119.
  36. Mu, J. (2017), Dynamic Capability and Firm Performance: The Role of Marketing Capability and Operations Capability, IEEE Transactions on Engineering Management, 64(4), 554 – 565.
  37. Nambisan, S., & Sawhney, M. (2011). Orchestration processes in network-centric innovation: Evidence from the field. Academy of management perspectives, 25(3), 40-57.
  38. Oksanen, K., & Hautamäki, A. (2014). Transforming regions into innovation ecosystems: A model for renewing local industrial structures. The Innovation Journal, 19(2), 1.
  39. Partanen, J., Kohtamäki, M., Patel, P. C., & Parida, V. (2020). Supply chain ambidexterity and manufacturing SME performance: The moderating roles of network capability and strategic information flow. International Journal of Production Economics, 221, 107470.  
  40. Powell, W. W., Staw, B. M., & Cummings, L. L. (1990). Research in organizational behavior. Neither market nor hierarchy: Network forms of organizations, 12, 295-336.
  41. Priyono, A., Nursyamsiah, S., & Darmawan, B. A. (2020). Network-based dynamic capabilities in internationalisation of SMEs: case studies in emerging economy. International Journal of Trade and Global Markets, 13(1), 11-20
  42. Rampersad, G., Quester, P., & Troshani, I. (2010). Managing innovation networks: Exploratory evidence from ICT, biotechnology and nanotechnology networks. Industrial marketing management, 39(5), 793-805.
  43. Sabatier, V., Mangematin, V., & Rousselle, T. (2010). Orchestrating networks in the biopharmaceutical industry: small hub firms can do it. Production Planning and Control, 21(2), 218-228.
  44. Saghafi, F., Mazarei, SH, Khansari, M., Mohammadi Kangarani, H., Asadifard, R. (2019). Meta synthesis of factors influencing strengthening the relationships among the members of S&T collaborative networks from the perspective of social capital theory. Innovation Management Journal, 8(3), 23-52.
  45. Sakhdari, K. (2015). Networking Capability and Organizational Entrepreneurial Performance: Explaining the Role of Organizational Strategic Trends (Case Study: Companies Providing Technical and Engineering Equipment and Services to Iran's Mining and Mining Industries).  Journal of Entrepreneurship Development, 8(1), 159-174.
  46. Samimi, A., ghazinoori, S., Moazzez, H., Keshmiri, M. (2019). Investigating the capabilities of the SME firms in the formation and continuation of technological collaborations: a multi case study. Innovation Management Journal, 7(4), 1-25.
  47. Sammarra, A., & Biggiero, L. (2008). Heterogeneity and specificity of Inter‐Firm knowledge flows in innovation networks. Journal of Management Studies, 45(4), 800-829.
  48. Sandberg, J., Holmström, J., Napier, N., & Levén, P. (2015). Balancing diversity in innovation networks: Trading zones in university-industry R&D collaboration. European Journal of Innovation Management, 18(1), 44-69.
  49. Santoro, G., Bresciani, S., & Papa, A. (2018). Collaborative modes with cultural and creative industries and innovation performance: the moderating role of heterogeneous sources of knowledge and absorptive capacity. Technovation.
  50. Svare, H., & Gausdal, A. H. (2017). Dynamic capabilities and network benefits. Journal of Entrepreneurship, Management and Innovation, 13(1), 117-146.
  51. Söderholm, P., Hellsmark, H., Frishammar, J., Hansson, J., Mossberg, J., & Sandström, A. (2019). Technological development for sustainability: The role of network management in the innovation policy mix. Technological Forecasting and Social Change, 138, 309-323.
  52. Trotter, R. T., Briody, E. K., Sengir, G. H., & Meerwarth, T. L. (2008). The life cycle of collaborative partnerships: Evolution of structure and roles in industry-university research networks. Connections, 28(1), 40-58.
  53. Tsai, K. H. (2009). Collaborative networks and product innovation performance: Toward a contingency perspective. Research policy, 38(5), 765-778.
  54. Vesalainen, J., & Hakala, H. (2014). Strategic capability architecture: The role of network capability. Industrial Marketing Management, 43(6), 938-950.  
  55. Wang, L., Yan, J., Chen, X., & Xu, Q. (2021). Do network capabilities improve corporate financial performance? Evidence from financial supply chains. International Journal of Operations & Production Management, 41 (4). pp. 336-358
  56. Weiblen, T., & Chesbrough, H. W. (2015). Engaging with startups to enhance corporate innovation. California management review, 57(2), 66-90.
  57. Xie, X., Fang, L., & Zeng, S. (2016). Collaborative innovation network and knowledge transfer performance: A fsQCA approach. Journal of business research, 69(11), 5210-5215.