Research On The Effect Of Network Capability On Business Performance

With the deepening of global integration and the rapid development of science and technology, the living and the management environment that enterprises face has changed greatly. The degree of integration between the organizations have become more sophisticated, companies are increasingly the dive into a variety of external networks. In a network environment, enterprises must remain in the competition and to gradually increase its own advantages, enterprises must fully understand the network environment for enterprise and leverage the impact of the network. Network, as the business environment, its'formation, structure, governance and evolvement affect the evolution of competition among enterprises, so taking full advantage of this "resource" is the key factors for success in the current competition. The value net theory breaks the traditional theory of value chain activities in points of linear thinking and mechanical models of separated valuable activities. The value net theory focus on reconstruction the value chain based on the original value of the customer, so that different taches of the value chain can act considering all aspects of the overall value of different subjects in accordance with the principle of mutual best convergence, integration, dynamic interaction.Stakeholders concerned about their own values at the same time, more attention to the value of each node within the network link between the value chain to break through the barriers and improve the interaction between the network and the main impetus for value creation. In view of this, this subject of the paper about value network outside the enterprise network perspective the impact on business performance, has important theoretical and practical significance. In this study, based on the study, organize, and review articles on social network theory, value network theory, network capacity theory, theory of firm performance, based on interviews with business people, this paper propose the research topic from the perspective of value network studying the enterprise network capacity's influence on enterprise performance. In the extensive reading on the basis of relevant literature, combined with the article's contents and research objectives, the paper defines the network capacity as the enterprise in a network has ability that assemble, integrate, deploy the network resources and combination with internal resources of other business to improve network performance and gain a competitive advantage and the vision from the network capacity, network capacity building, relationship management and portfolio management capabilities in four dimensions to measurement. Secondly, use the network position and absorptive capacity for the intermediate variables to analyze the transmission mechanism that network capacity to impact on business performance. The four dimensions of network capacity were affected location of business in the network and the capacity of new resources, new knowledge. Network location achieve competitive advantage and control of income by controlling the flow of resources and information; the absorption capacity enhance the technological advantage and management and ultimately affect performance through the new resources, new knowledge of the identification, acquisition, digestion and utilization; In addition, the absorption capacity can regulate the use of corporate position on the network, the business be able to use advantages of enterprise network location to obtain full utilization of resources with a strong absorptive capacity. And then, according to the theoretical analysis, this paper give a series of assumptions, and designed the questionnaire to manufacturing base in Shandong Province was discussion of "networked and business performance", we have received 191 valid questionnaires manufacturing enterprises from Qingdao, Yantai and Weihai. We use AMOS and SPSS software to analyze these data, including reliability and validity testing, descriptive statistics, Pearson correlation test, multi-factor analysis of variance, structural equation modeling analysis.Through a series of empirical analysis and testing, we draw the following conclusions:Through the analysis between value network theory and corporate network theory, we find that value network business model is a theoretical category belongs to the corporate network, but the value network is a special advanced stage of the corporate network. The four dimensions constitute of network capacity have a positive effect on network capacity, and the combination of network management capabilities of the network capacity has the greatest impact. The various elements of absorption capacity of enterprises has a positive effect, and the ability to access resources has the greatest impact to absorptive capacity of the enterprise. The network capability has a direct impact on the network position and absorptive capacity of enterprises, and network capability through the network location and regulation of the absorptive capacity of enterprises had a positive effect on performance.This paper has the following aspects of the innovative work:①Through in-depth theoretical analysis of the value network theory and business network theory reveals the close relationship between them. This paper points out that value network, as a mode of operation areas, belongs to the theory of enterprise networks, being a special advanced stage of development. On the one hand, value network business model is recessive to the dominant enterprise network from the development stage. On the other hand, the value net operating mode is the advanced stage of development of the enterprise network. The core business organizers of the value network must have higher levels of network capacity. According to former conclusion, this paper points out that enhancing the network capacity have a very important significance both for the value net business and for the corporate enterprise networks.②This article explores and puts forward the network capability impact on the business performance. Researchers have been most concerned about the static features of the enterprise network, such as network size, network density and other factors impact on business performance. The systematic study on the influence of network capability to the dynamic competitive advantage and the performance is very rare. By building network capacity of the transmission mechanism of business performance, this paper in-depth study and verifies using empirical data that upping business performance can come from identifying, building and managing enterprise network capabilities.③In the enterprise network perspective, this paper uses absorptive capacity and network location for the intermediate variables, integrated using the concept and theories of resources, knowledge, innovative and business growth, makes depth analysis of the impact of network capacity on the transmission mechanism of business performance. And then, establishes the network capacity——network location/ absorptive capacity——the corporate performance framework of analysis. Compared with previous research, this article analyzes the theoretical basis of the framework of a more extensive and comprehensive, the results are more comprehensive.④Draw on existing research results both at home and abroad, combined with targets of this study, this paper designs the corresponding items in order to quantify, measure, and apply the variables in the empirical research. And then apply manufacturing firms in Shandong Peninsula manufacturing base as samples for the empirical study. This paper laid a solid foundation for the after scholars in this field of quantitative study.