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Depth vs. Breadth: Network Strategy in Emerging Markets

Published online by Cambridge University Press:  20 January 2020

Shameen Prashantham*
Affiliation:
China Europe International Business School, China
Abby Jingzi Zhou
Affiliation:
University of Nottingham Ningbo, China
Charles Dhanaraj
Affiliation:
Temple University, USA
*
Corresponding author: Shameen Prashantham (sprashantham@ceibs.edu)

Abstract

Using survey data from China and India, we explore the impact of network strategy of new ventures in emerging markets. We focus on two critical dimensions of network strategy, namely, broadening and deepening the network and two types of knowledge: market knowledge and technological knowledge. We find that proactive network deepening is associated with market knowledge and network broadening with technological knowledge. From a network perspective, our work highlights the counterintuitive outcomes of breadth versus depth orientation in network strategy, highlighting differences between advanced and emerging economies. We use a post-hoc multi-group analysis to show the differences even within the two emerging markets: India and China. The direct effect of partnering proactiveness on market knowledge in India is significantly higher than that in China but there is no significant difference as to the effect of technological knowledge. We use this exploratory study to highlight the opportunities for network and entrepreneurship scholars to study emerging markets and, in particular, undertake comparative studies between new ventures in China and India.

摘要

摘要

基于中国和印度的调查数据,我们探讨了新兴市场中新创企业网络战略的影响。我们重点研究了网络战略的两个关键维度:网络拓宽和网络深化,以及两类知识:市场知识和技术知识。我们发现,前瞻性的网络深化与市场知识相关,同时,积极的网络拓宽与技术知识相关。从网络的角度来看,我们的研究突出了网络战略中广度和深度目标与直觉相反的结果,并突出了发达经济体和新兴经济体之间的差异。我们通过后续的多群组分析来显示印度和中国两个新兴市场之间的差异。在合作主动性对市场知识的直接影响方面,印度明显高于中国,但其对技术知识的影响则没有显著差异。

Аннотация

АННОТАЦИЯ

На основании данных опроса из Китая и Индии, мы изучаем влияние сетевой стратегии, которую используют новые предприятия на развивающихся рынках. Мы рассматриваем два важных аспекта сетевой стратегии, а именно расширение и углубление сети, а также два типа знаний: знание рынка и технологическое знание. Мы обнаруживаем, что активное углубление сети связано со знанием рынка, а расширение сети с технологическими знаниями. С точки зрения сетевой теории, наша работа приходит к противоречивым выводам, которые связаны с аспектами широты и глубины в сетевой стратегии, подчеркивая различия между развитыми и развивающимися странами. Мы применяем ретроспективный анализ нескольких групп, чтобы показать различия даже на двух развивающихся рынках: в Индии и Китае. Прямое влияние партнерской активности на знание рынка в Индии значительно выше, чем в Китае, однако нет никаких существенных различий в отношении влияния технологических знаний. Мы проводим это предварительное исследование, чтобы показать возможности для изучения в сфере связей и предпринимательства на развивающихся рынках и, в особенности, для сравнительных исследований новых предприятий в Китае и Индии.

Resumen

RESUMEN

Usando datos de encuestas en China y en India, exploramos el impacto de la estrategia de redes en operaciones nuevas en mercados emergentes. Nos enfocamos en dos dimensiones críticas de la estrategia de redes, concretamente, ampliación y profundización de la red y en dos tipos de conocimiento: conocimiento del mercado y conocimiento tecnológico. Encontramos que una profundización proactiva de la red está asociada con un conocimiento del mercado, y una ampliación de la red con conocimiento tecnológico. Desde una perspectiva de redes, nuestro trabajo resalta los resultados contraintuitivos de la orientación de ampliar versus profundizar en la estrategia de redes, resaltando las diferencias entre economías avanzadas y emergentes. Usamos un análisis de grupos múltiples post hoc para mostrar las diferencias incluso entre dos mercados emergentes: India y China. El efecto directo de la proactividad de asociación en el conocimiento de mercado en India es más alto significativamente que en China, pero no hay una diferencia significativa en cuanto al conocimiento tecnológico. Usamos este estudio exploratorio para resaltar las oportunidades para estudiosos de las redes y el emprendimiento para estudiar mercados emergentes y, en particular que emprendan estudios comparados entre nuevas operaciones en China e India.

Type
Article
Copyright
Copyright © 2020 The International Association for Chinese Management Research

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Footnotes

Accepted by: Senior Editor Jiangyong Lu

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