Absorptive Capacity Essay

937 WordsJan 4, 20134 Pages
Small Firm networks: a successful approach to innovation? (Victoria hanna and kathryn Walsh,2002) increase trend of inter- working among small firm in co-operating with certain activities like Marketing, purchasing , R&D, training or manufacturing interview with 3 network brokers which funded by regional government and facilitated co-operation between small firms competitive response evolve into a mechanism to enable small firm to develop innovation product and process jointly Large firm not only depend on the supply chain to manufacture product , but also the concern on the develop on the core competence and devote component design and manufacturing Co-operating in a network can enable small firms to deliver complex sub-assemblies and maintain their competitive position In order to survive, small firm need to changing in identify ;adapt to alternative technology need to be upl=date with collaboration innovate to remain competitive and minimise the cost Innovation is the introduction of products , process or services new to the firm : novel innovators introduce products, processes or services that are completely new to the industry (Cosh and Hughes,1998) when small firms group together for mutual competitive advantage , they often exclude their competitors (Hanna and Walsh,2000) The formation of network to provide a new service is innovative , However, small firm networks developing new products are extremely rare. Innovation in product and possibly process seem to remain inside small firms Small firm networks The drivers of networking derived from business need and inter-working between small firms has evolved. There are few firms that network with peers ( competitiors), and those relationships are often related to subcontracting rather than joint R&D Horizontal alliances seems to be a difficult process even with the aid of

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