How Structure Influence Relational Capital: The Impact Of Network Communication In Centralized Structure

Lokhman Hakim Bin Osman

Abstract


This research looks into the different effects of firms’ network structural positions in an upstream supply network upon the firms’ level of relational capital outcomes. Previous research has largely focus on the context of decentralized network structure. However, the supply network is a centralized network because of the existence of the focal firm. The existence of the focal firm may influence the impact of relational capital outcomes Objective: To determine the type of network structural postions required to obtain reasonable relational capital outcome in upstream supply network Results: Network structural positions i.e. degree centrality contributed to firms level of relational capital trust. Conclusion: Firms, embedded in upstream supply network benefits differently in terms of relational capital through different degree of embeddedness. Firms’ resources should be re-aligned to match the benefits with the different network structural positions.

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DOI: http://dx.doi.org/10.21015/vtess.v7i2.343

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