Study On The Relationship Among Network Orientation, Resource Integration And Corporate Performance Of The New Ventures

Based on the Chinese national conditions, this study puts forward the importance of network orientation and resource integration for new ventures. In this paper, the author describes the relevant studies of social network including the classic social network research, the role of social network for the new ventures and the systematic study of the relevant problems of network orientation; provides an overview of the resource-based view including the relevant study of resource management and the relationship between social network and resource management; summarizes the transaction costs theory and the relevant study of new ventures performance; shows the limitations of the existed research so as to emphasize the importance and necessity of this study. Then based on the above relevant research and theory, this study constructs a conceptual model of network orientation, resource integration and new venture performance. It also describes and inferences the mesomeric effect of resource integration and the relationship between network orientation and corporate performance, between resource integration and corporate performance, between network orientation and resource integration in detail and summarizes 18 research hypothesizes. After that, this study verifies the related hypothesizes and the models discusses and analyzes the analytical data results. This study simply puts forward the specific application of the network orientation in Chinese national conditions and discusses the mesomeric effect of resource integration in corporate performance combined with the resource integration which is the pioneering issue of entrepreneurial studies.The main contents and conclusions of this paper can be concluded as follows: (1) Making a systematic conclusion of the relevant research on network orientation, clearing and defining the concept of network orientation and putting forward the important effect of network orientation on new ventures. The network orientation research has been mainly and early applied in the field of psychology, while in the field of the economic management, it is an advanced study. Based on the previous researches, the author defines the concept of the network orientation which is looked as an attitude and tendency that is used for solving the problems and getting help by building and sustaining the network relationship. Also, referring to the researches of Sorenson and some others (2008), network orientation can be divided into three dimensionalities including cooperation, relational attention and open management. The empirical analysis of this study conforms that the three dimensionalities all play a positive role in new venture. Combined with the transition economy, the important role of the network orientation playing in the new ventures can be seen in two aspects: On the one hand, relational network goes beyond the market. It costs more to acquire resources and information through the market since the market is imperfect, so it is cheaper to get what is needed to create and manage the enterprise through the relational network. On the other hand, it is important to establish stable relationship with business administration departments and other governmental agencies. Under the background of China's transition economy, governmental agencies are important for new ventures, as they can make up the bad effect and loss caused by the imperfection of the market and the instability of the policy for the new ventures. Therefore, the higher network orientation the new ventures are, the better Corporate Performance the new ventures play.(2) This paper has discussed the concept of resource integration and analyzed the different effect on the corporate performance by different forms of resource integration from differential features of new ventures. Referring to the study of Sirmon and others (2007), to regard resource integration as a process of resource distribution and forming ability, and analyze resource integration from its three methods: Stable adjustment, enrichment and refinement and development and creation. Because of the limitation of resources, which urges new ventures to pay more attention to the distribution of the resources, that is to say, they need to integrate resource in order to utilize the existing resource more efficiently. However, for the new ventures, the effect of the three methods cannot be equated with each other. The creators and managers need to choose a reasonable method of resource integration according to their actual situation. Especially, stable adjustment of the resource integration is micro-adjustment of the existing resource which aims at keeping the efficiency of the exiting resource. Facing different kinds of disadvantages, only adopting this method may not help the new ventures to survive and grow. Stable adjustment of the resource integration is not suitable for every new venture. They must take it into account in detail when integrating the resource. (3) Putting forward the mesomeric effect of resource integration on network orientation and new ventures performance in order to better understand the concept of network orientation and its mechanisms. Effect of network orientation on new ventures is indirect, while the resource integration is the important way which can help opening the influence mechanism to the new ventures. This study puts forward the mesomeric effect of resource integration according to the theoretical analysis. It is also tested by the experimentation. The study shows that in the process in which network orientation has an effect on new ventures performance, most of the mesomeric effect of resource integration is verified. Even though it is not supported that the mesomeric effect of enrichment and refinement in the effect of the cooperation on the corporate performance and the mesomeric effect in the effect of relational attention on the corporate performance, we can not deny the important role of the resource integration played. It might also be noted that in order to make network orientation play an active role, the creators and managers of the new ventures should choose the reasonable method of resource integration when cooperating with the network members or adopting their suggestions.The result indicates that network orientation plays an active role in new ventures performance. As the new ventures are quite different from the mature enterprises, the creators and the managers of the new ventures need to fully realize this and choose the reasonable method of resource integration which can make entrepreneurial activity more effective and make more profit for the company combining with their own actual situation under the background of China's transition economy.There are also several deficiencies in this study: (1) Concerning the understanding of the network orientation, this study takes the external relationships as well as the internal relationships into account. There are obviously differences between the internal network and the external network, deficiencies the internal network is complex as it contains the relationship between superior and subordinate, the relationship among the same level, the relationship among the different departments and so on. All of these need to be opened and deeply explored in the further research in order to profoundly understand the concept of the network orientation.(2) The environment which the new ventures confront is complex and has greater effect on the new ventures. This study does not discuss it deeply. It needs to deal with environment variables quantitatively and analyze the effect of environment factors on network orientation and resource integration in future research.(3) With the limitation of various factors, the samples of this study are from Jilin and Guangdong, and most of them are from scientific and technological enterprises. We can choose the samples reasonably from expended region and industry which can make the conclusion more universal and popularized.(4) Either the network orientation or resource integration are in the process of continuous dynamic revolution. As a result of the external environment of new ventures is different in different development phases, which makes network orientation and resource integration change correspondingly. This study analyzes the relationship among the network orientation, resource integration and Corporate Performance by cross-section data. We can discuss the dynamic relationships among different development phases of the new ventures, network orientation and resource integration based on the dynamic tracking research and the case study.