Chapter 6: Network Advantage and Successful Firms
_____________________________________________________________ The basis for firm strategy among successful Chinese and Irish software firms concerns matching firms’ resources to the opportunities that arise in the evolving industry environment. As the competitor and customer variables tend to share similar characteristics across the software industry environment, the resources of the Chinese and Irish firms that enable them to accumulate marketing and technological capabilities will therefore be crucial ingredients for firm strategies during their early development and subsequent success. The preceding chapter has discussed the influence of network advantages on the tangible (e.g. financial capital) and intangible resources (e.g. human capital and cultural capital) of new software firms, and demonstrated how vertical individualism and vertical collectivism have led to different strategic process in relation to the building of founding teams, securing early finance, accessing new markets and elaborating firm structure. This chapter will focus on the entrepreneurial firm culture in successful firms, which is associated with firms’ longterm competitiveness. As tangible firm resources will become, over time, less important, the investment in intangible resources such as firm culture and human capital is of prime importance in creating a competitive advantage. In fact, firm strategy that leads to the evolution of technological capabilities as well as innovative marketing that underlies the success of technology-intensive firms is formulated and implemented by talented employees. Hence, firm culture which plays a key role in attracting, motivating and retaining human resources, will be the key driver for competitive advantage in successful software firms (Schneider 1988; Barney 1986 & 1991). Johannisson and...
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