Paper info

Network Operation and International Performance of High Tech SME s

Breda Kenny and John Fahy

The paper was published at the 27th IMP-conference in Glasgow, Scotland in 2011.

international performance of High Tech SMEs (HTSME) in the telecommunications industry
in Ireland. The network operation construct for this paper comprises three dimensions:
network initiation, network coordination and network learning. Empirical research was
carried out using a mail survey in which 154 firms completed and returned the questionnaire.
Three hypotheses were analysed using structural equations modelling using LISREL. The
study’s main finding suggests a positive relationship between a firm’s network coordination
and international performance. However, no support was found for the relationship between
network initiation, network learning and international performance. This study is cross
sectional, confined to a single industry and focused on the role of networks in the HTSME
context only. Results from this study provide policy makers and practitioners with additional
insights into specific network operation based factors that are associated with international
performance for HTSMEs. This study offers a multiple dimensionality to the network
resource concept by measuring the direct effect of the network operation capabilities in terms
of network coordination, network learning and network initiation on international
performance of HTSMEs in the telecommunications industry. These findings advance
network research by highlighting the trade-offs that networks impose on firms that seek to
manage and leverage their network operating resources.

Keywords: Network Operation, High Tech SMEs, International Performance