A Firm’s Strategic Behaviour in Networks

Abstract

Many firms are nowadays engaged in strategic alliances for their success and survival and are therefore determined to maintain or even increase their performance. Various strategy scholars focused on the impact of business strategies on performance; whereas network scholars examined the impact of the network position of the firm on its performance. However, there is a need to integrate both research streams to gain an in-depth insight in the strategic behaviour of firms, network position and firm performance and in how they are related to each other. This may help firms mainly operating in networks within high tech industry sectors to achieve competitive advantage over competitors. This indicates that research aimed at gaining and providing insight in how to investigate or determine if and how strategic behaviour and network position are related and influence the firm performance is needed first. The motivation for this case study research came from that need. The first objective of the research is to focus on whether insight in the strategic behaviour, network position and performance of a focal firm can be obtained from case studies; and if and how strategic behaviour and network position are related and impact the firm performance over time. The second objective is to determine and propose a comprehensive research design for future researchers who may attempt to conduct a case study research to into the possible relationships between strategic behaviour, network position and performance of the firm. To meet the research objectives, a case study approach has been undertaken. A multiple-case study design was chosen, since it allows cross-case analysis and may also enhance the validity of a study. The two sources of evidence included documents and archival records. From the preliminary analysis of available cases for the course MOT9592, two cases were selected based on the selection criteria for cases. The two cases were: (1) Apple iPod vs. Microsoft Zune; and (2) SACS vs. DVD-A. Both cases were about high tech firms within their networks, engaged in technology standards battles with competitors during the technological life cycle of a high tech product category. The aspects of strategic behaviour, network position and firm performance that had to be obtained from the case studies were established after the literature review. From the results obtained from the case studies it became evident that the research outcomes were influenced by practical difficulties, such as research approach, data limitation, bias and theory problem. Therefore the research focus shifted towards determining and proposing a comprehensive research design (research protocol, research scenario and “stylesheet”). This research design includes all recommended steps for successfully undertaking a case study research. From an academic perspective this exploratory case study research contributes to an increase in knowledge, by providing valuable insights in the core concepts strategic behaviour, network positions and firm performance and the possible relationships between those concepts. This research also has social relevance, since it determined and proposed a comprehensive research design, including a research “stylesheet”, which can be used by future researchers who may attempt to conduct a case study research to into the possible relationships between strategic behaviour, network position and performance of the firm. Nevertheless, there were also limitations in this research, which were all related to the research design. Therefore, in further research it is recommended to use the proposed research design.