Topic > Network internalization theory - 1997

It has been demonstrated that organizations that are part of a business network achieve a more solid and competitive structure, can access specialized technological services, the purchase of inputs, financing and the improvement of industrial processes, as well as enhancing its competitive progress in terms of processes, products and innovation. However, this network would not be possible without social capital, because it is the real driving force of businesses. This essay will explain the network theory of internalization, social capital on internalization and delve into both terminologies. Michael Porter established a theoretical framework for business application in industries that analyzed the processes and activities that create value in the organization and the dynamics with competition and the market. However, Porter's value chain formulation was limited to the vertical view of organizations, making implementation in non-industrial sectors or horizontal integration flexible. Porter sought human value as a production resource, basing his model on cost optimization, differentiation and profitability. The value chain concept has evolved in recent years to become the concept of value networks in which the links of the value chain are invested. flow management and is part of customer preferences followed by management of all business processes, distribution, product design, etc. To create an agreement appreciated by the market. In this new approach, business networks are intertwined in which the nodes are actors, companies, individuals or entities from which organizations establish interdependent relationships to adopt more horizontal, flexible, configurable and efficient structures. In the past, ... . middle of the paper ......f Weak ties: a network theory revisited. Sociological Theory, vol. 1 (1983), pp. 201-233• Nan Lin (1999). Building a network theory of social capital. XIX International Conference on Social Networking Sunbelt, Charleston, South Carolina, February 18-21, 1999. • Mark Casson and Howard Cox (1993). International trade networks: theory and history. Economic and business history, volume twenty-two, n. 1, fall 1993. • Jeremiah Gonzalez (2010). Understanding the role of social capital and school structure on the academic success of Latinos. LUX: A Journal of Transdisciplinary Writing and Research of Claremont Graduate University, Vol. 2 [2013], ed. 1, art. 16.• Gabriel Yoguel (2000). Creation of skills in local environments and production networks. Revista de la Cepal 71 (2000).• Dr. Tanja Kontinen (2013). Slides on the topic “Corporate strategies for international growth”.