Network Experiences Lead to the Adaption of a Firm’s Network Competence

Abstract

Networks become increasingly important as external sources of innovation for firms. Through networks firms get incontact with different actors with whom they can exchange information and collaborate. A firm’s ability to be asuccessful network actor depends on its network competence. This term can be defined as having the necessaryknowledge, skills and qualifications for networking as well as using them effectively. In this paper we investigate thelink between a firm’s network competence and the benefits resulting from it in a two‐way direction. First, thenetwork competence of the firm facilitates the adoption of information from other network actors which may leadto innovation success. Second the perceived network benefits shall in their turn influence the network competenceof the firm. Consequently, firms will adapt their network strategy corresponding their experiences. The objective ofthis paper is to investigate the dynamics of networking and its influence on the firm’s network competence. For thisexploratory research 3 Belgian networks are examined. In‐depth interviews are used in combination with semistructuredinterview guides to conduct the research. Our results indicate that some firms perceive benefits fromtheir network efforts, for others it is more a burden. Furthermore, in some of our cases we found that positiveexperiences with clear benefits motivate the firm to enhance its network competence. This is illustrated by the factthat collaborations are more frequently initiated, trust is more easily build, firms are more open to communicateinformation and the confidentiality threshold is overcome.

Keywords

• network competence
• innovation
• network management