An Empirical Study On The Influence Of Network On Enterprise Growth

Since the late of 1980s, with the development of virtual enterprises, enterprise groups, enterprise clusters, strategic alliances and franchise organizations, a growing number of enterprises use external network access to enterprise growth, and the external network has became the primary means of Enterprises seek cooperation and access to resources. In this context, the study of the influence of network on enterprise growth became an important issue. In this paper, samples are the small and medium-sized software enterprises in Jinan; the dependent variables are network structure, network relation and network type; and the independent variable is the possibility of enterprise fast-growing. The research purpose is to analyses the influence of the eco-network on enterprise growth from the perspectives of network characteristics and network types.The data came from the survey to 114 small and medium-sized software enterprises in Jinan. The research used SPSS12.0 of the statistical analysis software to do data processing. Besides social investigation method, the study used indicators provided by social network analysis method to measure the network structure and network relation. Using multiple-case embedded design method to study the evolution of the network types.The research resolved three major issues. The first, building the theoretic framework to guide the research, pointing out the reasons that researching the influence of network on enterprise growth from network structure, network relation and network type. The second, analyzing the influence of network structure and network relation on the possibility of enterprise fast-growing from the perspectives of inter-firm network and the network between firm and non-business organization. The third, studying on the contributions of different network types to enterprise growth and the evolution of network types in the enterprise growth procession.The research drew five main conclusions. First, factors both network-level and enterprise-level affect the influence of network on software enterprise growth in the same time. Network structure, network relation and network types decide the types and quantities of the resources that the firm obtains from the network. In this process, the firm's own networking capacity determines the degree of the effects.Secondly, different characteristics of the software enterprises network have differences influence on the enterprise growth. In the area of network structure, network size, network-centric, network density, and the heterogeneity of the customers in the network, as well as the heterogeneity of complementary enterprises in the network have a significant positive correlation with the the possibility of enterprises fast-growing. In the area of network relation, the intensity of relation between enterprise and customers, complementaries, competitors, as well as the durability of relation between enterprise and customers have significant positive correlation with the possibility of enterprise fast-growing;the number of the type of relation between enterprise and non-enterprise, and the intensity of relation between enterprise and government, intermediary, as well as the durability of relation between enterprise and government have significant positive correlation with the possibility of enterprise fast-growing; the positive effects of the intensity of relation between enterprise and competitors,as well as the durability of relation between enterprise and government on the possibility of enterprises fast-growing are not significant.Thirdly, different network types impact on the software enterprises growth differently. Under the condition of the joint influence of different network types, the knowledge flows of social network, stability of social network, closeness of knowledge and technology innovation network to customers, stability of reputation network, size of reputation network, heterogeneity of division network, as well as size of marketing network have significant contributions to the enterprise growth, all variables have significantly positive correlation with enterprise growth. The study also shows that, under the condition of independent influence of network types on enterprise growth, size of social network has significant negative correlation with enterprise growth.Fourth, the influences of network characteristics and network type on enterprise growth have been affected by the enterprise networking ability. To the strong networking ability enterprises, network size, network-centric, network density have significantly correlation with the possibility of enterprises fast-growing of powerful networking capabilities at the 0.01 level. To the weak networking ability enterprises, only the heterogeneity of complementary has positive correlation with the possibility of enterprise fast-growing at the 0.01 level. Compared with the weak networking ability enterprises, the influences of intensity of relation between trim and competitors and the duration of relation between firm and government on the possibility of strong networking ability enterprise fast-growing are more significantly. In addition, the influences of knowledge flows of social network and stability of reputation network on strong networking ability enterprise growth are significant. The marketing network contribute to the enterprises growth is lower than other networks in strong networking ability firms; the reputation network contribute to enterprise growth is lower than other networks in the weak networking ability firms.Fifth, there is a three-phased network evolution rule in the software enterprise growth cycle. In the embryonic phase, social network and marketing network affect firm success visibly. In the rapid development phase, the number of relation of reputation network increases rapidly. With the interaction of marketing network, division network and reputation network, the marketing network and division network show the trend of rapid development. In the stable development phase, scale expanding of market network becomes a major strategic method to obtain more profits; knowledge, technology, innovation network has turned to a network consists of weak relations.