Literature

Literature Review – Part 1

Based on the readings for this module, the content of previous courses (especially ORG 601 and 602), and your SLP 1, 2 & 3 research questions, hypotheses and model, write a literature review on predictors of your outcome variable (or closely related ones) which were identified in past research.
1.Use a systematic approach (e.g., see paper by Webster) to construct a table.
2.Synthesize the information from the table into 1-4 paragraphs.

SLP Assignment Expectations
1.Answer all questions with clarity and depth. Show your critical thinking ability.
2.Show ability to perform and write literature reviews.
Research Design and Fieldwork (Developing a Research Model)
Jessica T. Billingsley
Trident University International
Dr. Bruce Gillies
RES601- Research Design and Fieldwork
Module 3 SLP
Submission Date: August 23, 2015

This project’s research question is: “How do inter-firm networks hinder firm capabilities?” The specific objective is to investigate the adverse effect of inter-firm connectivity on the capabilities of a firm. In this module, I come up with the independent and dependent variables as I outlined them in the research hypothesis. The difference between the variables is that an independent variable (IV) is modifiable by the model in the quest to transform the output, while a dependent variable (DV) results from the independent variable. The variables include:

Independent variables
 Type of network connection
 Intensity of the inter-firm networks
 Degree of interconnectedness
Dependent variables
 Firm capability
 Firm performance

While applying relevant methodologies to prove or disapprove the hypothesis, there are underlying variables that affect the independent and dependent variables. The mediator variable shows the nature of the connection between independent and dependent variable. In this case, the independent variable will influence the mediator, and in turn, the mediator will affect the dependent variable. The moderator is a variable that affects the strength and direction of the bond or relationship between independent and dependent variables. These variables include:
Mediator variables
 Opportunities for improvement

Moderator Variables
 Technological advancements
 Innovation
All the outlined variables explain the relationships present in inter-firm connectivity. Networks require a stable and reliable connection for them to work, and for two companies to communicate effectively, the system needs complete integration of processes. This integration defines the degree of interconnectedness, and the network’s sharing capabilities describe the intensity of the system. Zaheer, Gulati & Nohria (2010) affirm that these factors will determine how well the connected firms will perform in their activities with the additional information and interaction. They determine how able a company is in meeting its goals to attain its vision.
But for the connectivity attributes to affect the company’s performance and capability, it must first provide opportunities for improvement. Grandori (2012) states that it is these opportunities will then increase of decrease the business’ performance. The efficiency of technological advancements and innovation will determine how well the network connectivity will influence and change company performance.
The hypothesis states that:
Excessive inter-firm connections hurt a company’s performance because it leads to the dominance of smaller firms by the larger ones.
The research question seeks to find out how inter-firm relationships hinder business capabilities. It means that the direction of the hypothesis has to be negative so that it can help the researcher determine the negative aspects of inter-firm connectivity. This theory is easy to prove or disapprove, and it is testable so that it can answer the research question. The researcher will use the independent variables to establish the strength of inter-firm connections so they can fall under excessive, moderate or insufficient connections. The researcher will use performance measures to gauge the degree of the company’s performance by outlining what the company can do through the interconnected networks.
To show the relationship between the variables, I created this diagram, which incorporates the mediator and moderator. It attempts to show all the relationships present among the variables and how they affect one another.
A B

C D
Figure: 1.1 – Relationship among the research variables
From the diagram, the relationship A denotes the effect of the independent variables on the improvement opportunities. Relationship B shows how the affected opportunities will impact company capabilities and performance. If the opportunities increase, performance will improve, and the firm’s capabilities will grow. Relationship C and D denote the effect of independent variables on the dependent variables. But before the independent variables can influence dependent variables, technological advancements, and innovation will determine the strength of the effect.
For my research methodology, I will use quantitative methods like surveys and reports on inter-firm connectivity to study the variable and prove or disprove the research hypothesis. Where applicable, I will use case studies to provide real-life situations of companies that operated using excessive inter-firm connections and show how they led to dominance. The surveys and reports will combine both current and old uses of technology so that I can prove how technological advancements and innovation affect firm capabilities in inter-firm connections. For most companies, inter-firm networks serve as a mechanism of risk sharing (Hagedoorn & Duysters, 2002). It means that when one company in the network faces a problem, it affects other firms on the network so they will work together to eliminate it. The system provides a secure connection between enterprises so that they can share both success and failure (Baxter & Woodside, 2011). In instances such as these, larger firms on a network have more capacity to withstand shocks in the market since they are more established, and they have an excellent financial position. When a crisis arises, it will be very easy for them to control the network and smaller firms because these companies have less power of penetration and influence.
Researchers ascertain that despite the form or intensity, inter-firm networks have consequences (Grandori, 2012). These affect both participating firms and outsiders because when the performance of a company falls, stakeholders feel the letdown. It is, therefore, a relevant area of study since it will enable companies to find the optimal levels of connectivity.

References
Baxter, R., & Woodside, A. G. (Eds.). (2011). Inter-firm Networks: Theory, Strategy, and Behavior (Vol. 17). Emerald Group Publishing.
Grandori, A. (Ed.). (2012). Inter-firm Networks: Organization and Industrial Competitiveness. New York, Routledge. ISBN 0-415-20404-6.
Hagedoorn, J., & Duysters, G. (2002). Learning in Dynamic Inter-Firm Networks: The Efficacy of Multiple Contacts. Organization Studies, 23(4), 525-548.
Koka, B. R., Madhavan, R., & Prescott, J. E. (2006). The Evolution of Inter-Firm networks: Environmental Effects on Patterns of Network Change. Academy of Management Review, 31(3), 721-737.
Watanabe, T., Uesugi, I., & Ono, A. (2015). The Economics of Inter-firm Networks: Main Issues (pp. 1-12). Springer Japan.
Zaheer, A., Gulati, R., & Nohria, N. (2010). Strategic networks. Strategic Management Journal, 21(3), 203.

Research Design and Fieldwork (Developing Research Hypotheses)
Jessica T. Billingsley
Trident University International
Dr. Bruce Gillies
RES601- Research Design and Fieldwork
Module 2 SLP
Submission Date: August 9, 2015

Introduction
In this paper, I seek to formulate a hypothesis on the basis of the research question: how inter-firm networks hinder firm capabilities. Inter-firm networks have received criticism and applause in almost equal magnitude with respect to their effects on companies’ capabilities. While the proponents have looked at them as an opportunity to scale the heights of success in enhancing the performance of a company, critics see them as a serious impediment.
Variables (DV and IV)
In the conduct of the study, there are two main variables utilized. The dependant and independent variables. By definition, the independent variable refers to those values that are changeable in a given equation or model. In other words, the independent variables provide an input which is modifiable by the model in order to transform the output. On the other hand, the dependant variables normally results from the independent variables. The variables are normally universal whether in scientific or statistical experiments or even mathematics.
In seeking to answer the question on how the interfirm networks hinder firm capabilities, the two variables will have to surface. The main independent variables in the study are the intensity of the inter-firm networks. Aspects of the types of networks and degree of interconnectedness are definitely part of the independent variables. The degree of network connection in a firm is something that can be changed to a desirable level, thus making it an independent variable in the study. On the other hand, the main dependant variable is the capability of the firm, which in this study, is thought to result from the type and level of internet connection. The study hypothesis established that inter-firm connection poses serious threats to a firm’s capability and performance. As such, the task ahead is to test this hypothesis and prove it or disaprove it using the relevant methodologies. In essence, the main purpose of the test will be to see whether the independent variable which in this case is the degree of connection will change the capability of a firm.
Hypothesis Formulation
In formulating the hypothsis for this research, there was need to review the research question, aim and objectives. The overriding question for this research seeks to answer the question on whether inter-firm networks adversely affect a companies’ capabilities. There was need to have a hypothesis that is testable in order to arrive at verifiable data leading to informed conclusion. The first step to developing the hypothesis involved a general observation and review of the available information with regards to the inter-firm connections. A general look at the data related to the concept was considered very critical at this point. The next stage is the refining of the general hypothesis to give it direction and make it testable. The general hypothesis for the research was that inter-firm connection poses serious threats to a firm’s capability and performance. As it is, it may not be easy to test. As such the hypothesis was refined as follows:
Excessive interfirm connections hurt a firm’s performance because it leads to dominance of smaller firms by the larger ones.
The refined formulated hypothesis is testable and easy to prove or disaprove with the use of the suitable methodologies and designs.
Relationship to Research Question
The hypothesis is related to the research questio in the sense that it gives a perceived answer to the question. The task ahead, therefore, is to answer the research question by testing the hypothesis.