Research On The Influence Of Network Competence On Structuring Resource Portfolio Of New Ventures

Many scholars, such as Barney, believe that the valuable, rare, inimitable, non-substitutable resource has much influence on new firms performance, and such resource is the base of competitive advantages (Barney, 1991). But the growing liability and weakness make new firms facing high-uncertainty in technology and market. Because of lacking the record of performance and asymmetric information, new firms can not be rightly evaluated by resource owners. These reasons also make new firms very hard to get help from other firms and organizations. So comparing with mature firms, new firms often face high-risk of failure and can not obtain resource easily. Many scholars consider that building social network is a good method to deal with this problem. At the early stage of new firms, many entrepreneurs obtain capital, pivotal technique and human resources via social network (Aldrich & Zimmer, 1986; Birley, 1985; Shane& Stuart, 2002; Starr & MacMillan, 1990).In this paper, we solve the problems in China's transitional economy. Resource constraint, faulty market rules and discontiguous policy are the most markable characters of transitional economy (Peng & Heath, 2000). Its environment practises high dynamic. And in this circumstance, new firms may face a big problem for resource restriction. So, how to obtain resource from social network is a significant problem for new firms to survive and develop.Although some researches emphasize that social network influences resource acquisition and new firms performance. But these literatures still have some theoritical gaps. The first gap is the entrepreneurship research on resource based view(RBV) is not maturity, the conventional resource based view is mainly used in the strategy of establishment firms. Though Barney (1991) have made some valuable trial in entrepreneurship research, but the literature is still less and the has not form comprehensive theory system. The second gap is the mechanism of structuring resource portfolio still need further stduy. In the current, many literatures emphasizes possesssing or controling the resource is very vital to the surivial and growth of new firms, but these literatures mainly pay attention to external resource acquisition and overlook the use of internal resource accumulating. According to RBV, possessing valuable and rare resources provides the basis for value creation. This value may be sustainable when those resources are also inimitable and lack substitutes (Barney, 1991). But the resource acquisition from outside of the firm can not be heterogeneity, unless through internal accumulating. The third gap is the influence of network competence on structuring resource portfolio still need further study. The current literatures often pay attention to the influence of some characteristics of social network, but the research about network structuring, maintenance and exploit is much fewer. Network competence not only examine the static feature, but also the dynamic feature of social network.So this paper builds the conceptual model of network competence , structuring resource portfolio and new firm performance, analyzes the relationship among them and points out hypotheses; examines the conceptual model and hypotheses through empirical analysis; discusses the empirical result and point out the significance in theory and practice. This paper includes following parts. Firstly, reviews the relative literature about social network, resource acquisition and evaluates the contribution and shortage, based on this, summarizes the factors this paper will analyze.Secondly, builds the conceptual model of network competence, structuring resource portfolio and new firm performance. Taking the current literature for reference, this paper divides network competence into four dimensions: network vision competence, network structuring competence, network management competence and network exploitive competence; divides structuring resource portfolio into two dimensions: external resource acquisition and internal resource accumulating. Thirdly, based on the theoretical analysis, puts forward sixteen hypotheses about the influence of network competence on structuring resource portfolio; the influence of structuring resource portfolio on new firm performance; influence of external resource acquisiotion and internal resource accumulating.Fourthly, theoretical model and hypotheses we put forward are tested using SPSS software. The data are from questionnaire of 344 new firm in Jinlin Province. Results of the test indicate that the model is well supported and fourteen out of sixteen are supported.Finally, a discussion is made on the test results, which further makes it clear that out research is of great importance both in theory and practice. We analyses the significance of hypotheses, which are supported and analyses the cause of hypotheses which are not supported according to the special development background of Chinese new firm practice. Then put forward some advice about how to building competence, promote resource portfolio structuring. The paper conclude five revelation: building efficient information collect, disposal and feed back systerm; attach much importance to internal resource accumulating; cultimate network competence comprehensively; exploiting the self-reinforced mechanism of network competence and improve firms learing ability.The basic conclusions of the dissertation are as follows:Network vision competence is positvely related to external resource acquisition. Network vision competence is positvely related to network structuring competence. Network size is positvely related to internal resource accumulating. Network intensity is positvely related to external resource acquisition. Network intensity is positvely related to internal resource accumulating. Network diversity is positvely related to external resource acquisition. Network management competence is positvely related to external resource acquisition. Network management competence is positvely related to internal resource accumulating. Network management competence is positvely related to network structuring competence. Network exploitive competence is positvely related to external resource acquisition. Network exploitive competence is positvely related to internal resource accumulating. External resource acquisition is positvely related to new firm performance. Internal resource accumulating is positvely related to new firm performance. External resource acquisition is positvely related to internal resource accumulating.