Proceedings of the 2nd International Scientific conference on New Industrialization: Global, national, regional dimension (SICNI 2018)

The Network Potential of IT Firms

Evgeny Popov, Viktoriya Simonova
Corresponding Author
Evgeny Popov
Available Online January 2019.
DOI to use a DOI?
network potential, assessment of network potential, IT-sector firms
In today’s world, the key factor of competitive advantage consists in the ability of economic agents to integrate, exchange information and generate knowledge. In this paper, we set out to investigate networks formed between firms with the purpose of facilitating mutually beneficial collaboration between them. To this end, we develop a multi-factor model of the network potential of such structures, which can be applied in practice for maximizing the outcome of networking between firms. It is shown that the network potential of firms involved in such interactions can be represented by all the tangible and intangible resources of the agents consolidated with the purpose of increasing the mutual efficiency of their collaboration. The development of the model involved the analysis of networking collaborations in terms three conditions determining their efficiency. We refer to these conditions as assignment, coordination and affirmation. The condition of assignment characterizes the quality of resources contributed by all the parties; it is an ‘existential’ condition forming the basis for a further productive collaboration. The condition of coordination implies all management strategies and tactics aimed at optimizing the interaction processes and ensuring the synergistic effect. The affirmation condition represents the outcome of the functioning of a network organization in terms of the synergistic effects produced. Using the developed theoretical model, we empirically assessed the network potential of IT firms in Russia. It is shown that this sector of economy is characterized by the strategy of a collaborative implementation of innovations, which represents the affirmation condition. This becomes possible as a result of a high level of coordination, including measures aimed at intensifying integration, promoting adaptation and preventing opportunism
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Cite this article

AU  - Evgeny Popov
AU  - Viktoriya Simonova
PY  - 2019/01
DA  - 2019/01
TI  - The Network Potential of IT Firms
BT  - Proceedings of the 2nd International Scientific conference on New Industrialization: Global, national, regional dimension (SICNI 2018)
PB  - Atlantis Press
SP  - 402
EP  - 406
SN  - 2352-5398
UR  -
DO  -
ID  - Popov2019/01
ER  -