Exploring the relationship between network competence, network capability, and firm performance: A resource based perspective in an emerging economy

preview 1 Exploring the relationship between network competence, network capability, and firm performance: A resource based perspective in an emerging economy. Gert Human University of Cape Town, S.A. Peter Naudé Manchester Business School, UK. Growing attention to business-to-business networks and the demonstrated linkage between firm performance and collaborative efforts within these networks, fuels the continued search for a greater understanding of what is needed to manage in complex business constellations. A key component of this challenge, and the focus of this study, is the competencies and capabilities required at the firm level to engage in meaningful network relationships to enhance performance. Adopting the notion of the resource based view (RBV) of the firm, this paper seeks to confirm the distinctiveness of measures of network competencies and capabilities needed to manage within networks in an emerging economy environment. Secondarily, the paper considers the relationship between these “resources” and subjective measures of firm performance. The analysis is based on data extracted via a multi-informant mail survey of business managers in South Africa. Confirmatory factor analysis, structural equation modelling and multiple regression analysis were employed to test a conceptual model based on prevailing literature. In addition to providing greater clarity on relational effects depicted in the model, the paper also aims to contribute to scale development and the rich debate on network management challenges.