Network Resources: A Competitive Tool for Organizational Performance with the Mediating Effect of Organizational Culture and Market Knowledge Absorbing Capacity

Abstract:

The purpose this paper is to identify the prospects of network resources for increasing the firm performance. This research used the survey data collected from 440 employees of private sectors in Pakistan to study the role of network resources as competitive tool for organization performance and hypothesis testing. The methodology that is used is SEM (structural equation modeling) technique. Hence there is partial mediation effect among network resources and organization performance. The results of the paper show that network resources and marketing knowledge absorbing capacity are critical factors to determine the organization performance. Additionally, the mediation analysis demonstrates network resources and organization performance as being partially mediated by a marketing knowledge absorbing capacity. The result of study gives applied confirmations that private sectors should achieve the collaborative advantage with other firms by combing effect of network resources and market knowledge absorbing capacity and compete efficiently with the competitors. This paper interlinks the external network resources with internal market knowledge absorbing capacity and organization culture facilitating a practical strategy to gain competitive edge and create value in a private sector. It aids for further development in bringing the change in workplace.