The competitiveness of small network-firm: A practical tool

• Published in: Journal of business research 2016-05, Vol.69 (5), p.1769-1774
• Main Authors: Díaz-Chao, Ángel, Sainz-González, Jorge, Torrent-Sellens, Joan
• Format: Article
• Language: English
• Subjects: Competitive advantage; Firm competitiveness; Global knowledge economy; Information management; Likert scale; Small business; Small network-firm; Studies; Value chain
• ISSN: 0148-2963; 1873-7978
• DOI: 10.1016/j.jbusres.2015.10.053

This study presents a model and a practical tool for measuring and managing small network-firm competitiveness. This model, which has three concentric circles, goes beyond the value chain. The first concentric circle represents a small network-firm's results. The second represents the four elements of the firm value. The third represents the set of environmental activities affecting the value elements. In addition, ten working assumptions are present. The findings suggest that the small network-firm competitiveness is manageable through a set of twenty-five entrepreneur or indicators that managers perceive; five for each value element (human resources and work organization, operations and marketing, infrastructure, and innovation) and five for small firm performance. A ten-point Likert scale rates each of these indicators. An empirical analysis corroborates the model and the practical tool. This information system could be especially useful to small firms that do not have practical tools for managing better competitiveness in global knowledge environments.