Network competence based on resource-based view and resource dependence theory
by Shehnaz Tehseen; Sulaiman Sajilan
International Journal of Trade and Global Markets (IJTGM), Vol. 9, No. 1, 2016

Abstract: The Resource-Based View (RBV) acknowledges that firms' resources contribute a lot to achieve competitive advantage. Therefore, it is critical to gain necessary resources to become more competitive relative to their competitors. Thus, network competence is the mechanism for firms to gain crucial resources. Based on Resource Dependence Theory (RDT), firms have to develop and maintain the relationships with their customers, suppliers and other relevant organisations to achieve important resources. By recognising the important role of network competence in achieving business success, this study aims to improve understanding of the concept of network competence and its relationship with the RBV and RDT, types of networking and their contributions towards small firms' business success. This paper concludes that network competence is an important organisational capability that leads towards competitive advantage and the firm's success. Thus, it is strongly recommended for firms to develop this competence to obtain critical resources for their businesses.

Online publication date: Tue, 12-Jan-2016

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