Literature Review: B2B Networking and Business Performance

This literature review examines the impact of business-to-business (B2B) networking on business innovation and performance, particularly within the Australian context. It begins with an overview of B2B networking, defining the concept and exploring relevant theories such as social network, resource dependency, and transaction cost theory. The review then assesses the current state of innovation and performance in organizations, identifying both internal and external barriers to innovation. The core of the review focuses on the impact of B2B networking on organizational innovation, highlighting both the positive effects, such as access to resources and knowledge, and potential negative impacts, like uncontrolled costs and rigidity. It explores how B2B networking influences innovation through resource sharing, risk mitigation, and cultural exchanges. The review also discusses how B2B networking affects organizational performance by influencing productivity, profits, and market competitiveness, while also considering potential drawbacks. The review synthesizes existing literature to provide a comprehensive understanding of the complex relationship between B2B networking, innovation, and performance in the business environment.

Literature Review
(Impact of business to business networking on business
innovations and performance in Australia)

Table of Contents
LITERATURE REVIEW................................................................................................................1
Overview......................................................................................................................................1
Concept of business to business networking...............................................................................1
Theories related to B2B networking............................................................................................2
Current innovation and performance of organization..................................................................3
Impact of B2B networking upon organisation's innovation........................................................4
Impact of business to business networking on organisation's performance................................5
Conclusion...................................................................................................................................6
REFERENCES................................................................................................................................7

LITERATURE REVIEW
Overview
Investigators need to carry out an in depth review of all the information. It is very
essential for the researcher to analyse the study that has been carried out in early studies. The
previous literature review helps in conducting analysis in more effective and appropriate way. It
is very helpful in getting reliable and valuable outcomes. This is very useful to understand the
views and opinions of different writers and authors upon research subject. Through this section
several theories and models related to the topic will be discussed. In depth study of the specific
subject is reviewed in detailed and clear manner so that study can be conducted appropriately.
Concept of business to business networking
According to the viewpoints of Schoonjans, Van Cauwenberge and Vander Bauwhede
(2013) networking is a kind of activity which is used by different organizations and
entrepreneurs in order to maintain their business relationships. By adopting this, different
business people will be able to enhance their capital so that social relationship can also be build.
On the basis of relational and structural characteristics it can be identified that whether an
enterprise get benefits from such kind of networking or not. In the structural, organization
provide a favourable or peaceful environment to their staff members by providing them
sufficient resources and information so that they will be able to get aware about different the task
which they need to perform. The another relational is focused on the quality relationship that
exist between different organizations. On the other hand, it has been analysed by Ford and
Mouzas (2013) that networking which is established between businesses is more advantageous
for the small enterprises as through this they will be able to achieve large economy of scale, the
effective distribution, and along with this they can share information to other firm regarding
latest technology and tools. Through this, production capacity can also be enhanced in more
successful manner and an industry will be able to achieve competitiveness.
Mitrega and et. al., (2012) explained that there are some factors which play an important
role in order to established a network between different business organizations. Some of these
are like flow, links, actors and mechanism. Actors are the individuals, links are the one which
connects different enterprises and flow is related to the exchange of information, goods, services,
capital, resources and so on. Mechanism is the mode in which form information is get exchanged
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between different parties. So, information can also be transferred through meetings, face-to-face
interaction, seminars and joint fairs. Apart from this, it is stated by Ebbers (2014) that by using
an effective networking approach number of uncertainty and associated risks can be reduced to
some extent. There are two types of networking which get established between firms like
horizontal and vertical. The horizontal network is established between industries which work in a
same business as through this they will be able to solve common issues. The another one is get
established between the organization which are not performed their operations in same sector. As
through this, they can gain marketing opportunities and enhance their productivity level.
It has been identified by Lee, Abosag and Kwak (2012) that B2B networking plays an
important role in achieving the success at marketplace. Through this, different industries will be
able to know about the strategies and techniques which are adopted other large scale firm. There
are some advantages of using networking at business environment like through this operation can
be expand at large scale, firm can grab opportunities in the form of joint ventures & alliances,
connections can be strong, an effective profile can be created and competitiveness can be
achieved. This may affect the organization in positive manner so their brand image can also be
enhanced. On the contrary, it has been explained by Camisón and Villar-López (2014) that there
are some drawbacks of business networking like desirable outcomes will not achieved in future
as expected as due to poor connection which get established between different industries.
Theories related to B2B networking
As per the viewpoints of Hogan and Coote (2014) there are some theories which are
related to networking that is placed between different business organizations. Some of these
theories are like social network, resource dependency and transaction cost theory. By adopting
these, an effective connection can be established and through which they will be able to achieve
success. Resource dependency is used by industries in order to gain more resources so that
innovative and quality products can be manufactured. On the other hand, some companies form
alliances in order to reduce the overall marketing cost so for this they used transaction cost
theory. Through this, they will be able to generate higher profits and revenues which help them
in improving their position at global level. It has been analysed by Bøllingtoft (2012) that some
enterprises are there which use social network in order to build their relations with the other
firms. This is more focused on the commitment, trust and integrity. By considering these, an
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effective connection can be established which will help them in improving their performance at
global as well as domestic level.
Schoonjans, Van Cauwenberge and Vander Bauwhede (2013) confronted that each and
every organization has its own specific goals and objectives. For this, they form some strategies
and approaches by following a particular vision or mission. Through this, an appropriate
guideline can set for all other staff members so that they can perform their operations in an
effective manner. An entity has to select the theory as per their requirement or expectation so
that overall targets can be achieved in successful way. It has been argued by Bock and et. al.
(2012) that there are some factors which can affect an organization in order to establish their
networking with other firms. Some of these are like communication medium, distribution
channel, external environment and so on. Companies have to focus on these so that they will be
able to achieve success in effective manner.
Current innovation and performance of organization
According to the views of Lee, Abosag and Kwak (2012) innovation is related to some
new ideas and thinking which can help the organization in order to achieve competitive
advantage at the marketplace as compare to other marketing players. In order to implement an
innovation, firm has to focus on different financial, technical, scientific requirements so that an
idea can be implemented in an effective manner. This is an essential factor which can help an
enterprise in achieving competitiveness. In order to develop such kind of innovation, companies
can use different models and theories like integrated and coupling model. By adopting these, an
enterprise will be able to offer more innovative services to their customers so in this way their
satisfaction level can be enhanced. On the contrary, it has been analysed by Gronum, Verreynne
and Kastelle (2012) that current performance of an industry can be analysed on the basis of their
productivity level, net profits, sales, revenues, customers base and so on. So by analysing these
aspects, current performance of firm can be identified in more effective manner.
As per the viewpoints of by Huang Lai and Lo (2012) there are some barriers to innovation
and on the basis of these an organization will not be able to perform well. Internal and external
both factors are their which can affect the performance of firm and due to which they will not be
able to achieve their goals. Some internal barriers are related to organization structure,
procedure, lack of resources, lack of motivation among staff members. On the other hand, there
are some external issues like infrastructure, legislation, acts and other training systems. It has
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been analysed by Lambert and Davidson (2013) that an enterprise has to focus on these and
formulate some strategies as per the requirements so that effectiveness can be achieved. Along
with this, cost, resources, skilled workers play a vital role so that innovation can be implemented.
By implementing such innovativeness, companies can provide some quality services to their
consumers so that they can attract customers from Australia and other countries.
It has been analysed by Bøllingtoft (2012) that an innovation is strongly related to the
business organizational performance. Like if an enterprise will perform such kind of process then
through this they can gain competitiveness at marketplace as compare to other rivals. This kind
of innovation can also affect the industry in positive manner as through this they will be able to
gain high profits and high return on investment. By using some measures like patents count and
research & development expenditure, it can be identified that how performance can be enhanced
by using some effective approaches.
Impact of B2B networking upon organisation's innovation
According to Lambert and Davidson, (2013), innovation is the concept where the
organisation is involved in exploitation of the new ideas and thoughts. Basically innovation is the
changes that occurs in surrounding and culture of the firm. It involves all those aspects that are
related to scientific approach, commercial, financial and technical elements which is very
essential for development as well as success of a business in Australia. Business networking
plays a very important role in the development of a firm in competitive market so that they can
be able to survive in market. B2B network helps in accessing the various resources such as the
core competencies, talents, knowledges and skills.
As per Bock and et. al, (2012), business to business helps an organisation to innovate new
things and provoke it to introduce such effective products and services that will support in
attracting large number of customers towards its product and services. It is very essential for the
organisation to cope up with the technique of B2B network so that plans and new strategies can
be able to implemented by firm. It also allows to in the rational division of labour, helps in
sharing high rates of risk, cultural exchanges all are the factors that can be considered as the
aspect which is having a direct impact upon innovation capabilities of an organisation in a
positive and effective manner.
As asserted by Huang, Lai and Lo (2012), business networking is for the most
confidential part to a great degree beyond any doubt capacity of the innovative of the "total
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information" spreading out in long range of the business networking. Regardless, in a couple of
cases, in like manner this surge of studies imparts stress for the pointless activity and resources
that the general thought of framework affiliations may suggest: few cases are studied, where
business to business network perform extremely well, when compared with the traditional
approaches of innovation.
Contradictory view given by Boons and et. al, (2013), states that many times there are
chances where business to business impact upon the innovation of an organisation in negative
manner as well. Customers are very rationale they do not rely and trust very quick upon
everything they take time to understand the new concept that has been introduced by company.
This many time affect business as well. Several time the company try to control its networking
which may lead to a negative situation. Customers may resist this and this will reach to a
destructive state of the company's plans and ideas. Here the uncontrolled cost can get incurred
that may lead in bearing high risk. Manpower and the entire management become lazy due to the
network comfort, this will end to the rigidity in working culture. Over exploitation of the public
goods happen which is affecting the business in negative way. Several activities get hinders due
to the business networking that is performed in online basis. Financial fragility also takes place
due to dependency of company upon few and very limited partners.
Impact of business to business networking on organisation's performance
As view point of Chittithaworn and et. al, (2011), business to business networking helps
in enhancing the performance level and the productivity of a firm. It is very essential as it helps
in motivating the employees and the management of the firm to work in more effective and
appropriate manner. There is some writer who states that with its help and support organisation
can be able to improve its attitude towards operations and functions, and it will lead firm to
perform for the society as well. Business networking permits to access the market, which will
lead in identifying the needs and wants of customers. This will help in providing the required
things to clients and will aid in availing proper satisfaction.
According to Bocken and et. al, (2014), the use of effective business to business
networking will lead in attaining appropriate outcomes in work as it become easy to carry out all
its operations and functions in an appropriate and effective manner. It is very essential for the
organisation to make their employees understand about the result of introducing this approach in
business, this will motivate them to perform in most desirable manner which will lead in
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attaining organisation's standards goals and set objectives. With this the financial resources of the
firm will also become strong as a positive impact upon the business' operations. The business
credit scores will also get better and will be able to enhance the quality of services and goods to
the customers which will lead in customer's satisfaction. This will also help in performing work
for the society as well as income is generated in large volume which will lead in corporate social
responsibilities as well. It is also very helpful in obtaining the customers attention and trust
towards the company and this will assist in serving large number of customers.
Watson, (2012), states that B2B networking provides more protection and predictable
environment for company to work in more appropriate and effective manner. This situation will
lead to the situation where firm can be able to avail more resources and materials that they can
use for long term and can also invest in market in effective manner. Contrary to it Lambert and
Davidson (2013), says that this protection and secured environment will result in firm's rigidity
and the manpower of the firm will become resisted and will not accept any kind of changes as
they become very much addicted to the present scenario of work. As this is very new concept of
working the cost incurred in this will also get raised as the entire technology to get implemented
is very expensive. It is very essential for the organisation to meet them unless there are chances
where they can be able to operate their work in the planned and desired manner. He also says
that the competitive advantage that company will attain will also not be able to cover up the cost
that they are getting out of it. Firm could not be able to compensate the drawbacks of cost
through several benefits and advantages.
Conclusion
On the basis of above evaluation of the studies and discussions of different writers and
authors, it can be concluded that business to business networking is very important aspect at
present time. It is very effectively supporting different organisations in Australia to carry out
their operations and functions in the desired manner. This research has found that B2B
networking has a very great impact upon innovation and performance of an organisation.
Different theories have been concluded regarding networking to understand the effectiveness of
it upon organisation's operations and activities.
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REFERENCES
Books and Journals
Bock, A. J. and et. al., 2012. The effects of culture and structure on strategic flexibility during
business model innovation.Journal of Management Studies. 49(2). pp.279-305.
Bocken, N. M. P. and et. al., 2014. A literature and practice review to develop sustainable
business model archetypes.Journal of cleaner production. 65. pp.42-56.
Bøllingtoft, A., 2012. The bottom-up business incubator: Leverage to networking and
cooperation practices in a self-generated, entrepreneurial-enabled environment.
Technovation. 32(5). pp.304-315.
Boons, F. and et. al., 2013. Sustainable innovation, business models and economic performance:
an overview.Journal of Cleaner Production. 45. pp.1-8.
Camisón, C. and Villar-López, A., 2014. Organizational innovation as an enabler of
technological innovation capabilities and firm performance. Journal of business
research. 67(1). pp.2891-2902.
Chittithaworn, C. and et. al., 2011. Factors affecting business success of small & medium
enterprises (SMEs) in Thailand.Asian Social Science. 7(5). p.180.
Ebbers, J. J., 2014. Networking behavior and contracting relationships among entrepreneurs in
business incubators. Entrepreneurship Theory and Practice. 38(5). pp.1159-1181.
Ford, D. and Mouzas, S., 2013. The theory and practice of business networking. Industrial
Marketing Management. 42(3). pp.433-442.
Gronum, S., Verreynne, M. L. and Kastelle, T., 2012. The role of networks in small and
medium‐sized enterprise innovation and firm performance. Journal of Small Business
Management. 50(2). pp.257-282.
Hogan, S. J. and Coote, L. V., 2014. Organizational culture, innovation, and performance: A test
of Schein's model. Journal of Business Research. 67(8). pp.1609-1621.
Huang, H. C., Lai, M. C. and Lo, K. W., 2012. Do founders' own resources matter? The
influence of business networks on start-up innovation and performance.Technovation.
32(5). pp.316-327.
Lambert, S. C. and Davidson, R. A., 2013. Applications of the business model in studies of
enterprise success, innovation and classification: An analysis of empirical research from
1996 to 2010.European Management Journal. 31(6). pp.668-681.
Lee, J. W., Abosag, I. and Kwak, J., 2012. The role of networking and commitment in foreign
market entry process: Multinational corporations in the Chinese automobile industry.
International Business Review. 21(1). pp.27-39.
Mitrega, M. and et. al., 2012. Networking capability in business relationships—Concept and
scale development. Industrial Marketing Management. 41(5). pp.739-751.
Schoonjans, B., Van Cauwenberge, P. and Vander Bauwhede, H., 2013. Formal business
networking and SME growth. Small Business Economics. 41(1). pp.169-181.
Watson, J., 2012. Networking: Gender differences and the association with firm
performance.International Small Business Journal. 30(5). pp.536-558.
Online
What Is Business Networking, Anyway?. 2017. [Online]. Available through: <
https://www.entrepreneur.com/article/196758>. [Accessed on 18th August 2017].
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Benefits and Drawbacks of Business Networking. 2017. [Online]. Available through: <
http://ezinearticles.com/?Benefits-and-Drawbacks-of-Business-
Networking&id=4756415>. [Accessed on 18th August 2017].
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