Network Theory of Internalization

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It has been shown that organizations that are part of an enterprise network achieve a more solid and competitive structure, can access specialized services technology, purchase of inputs, financing and improvement of industrial processes, in addition to enhancing its competitive progress in terms of processes products and innovation. However, this network would not be possible without the social capital, because it is the real engine of companies. This essay will explain the network theory of internalization, the social capital on internalization and will go in deep in both terminologies. Michael Porter established a theoretical framework for enterprise application in industries that analysed the processes and activities, which create value in the organization and dynamics with your competition and market. However, the formulation of the Porter value chain was limited to vertical view of organizations, making rigid implementation in non-industrial or horizontal integration features flexible sectors. Porter looked for human value as a resource of production, basing its model on optimizing costs, differentiation and profitability. The concept of value chain has evolved in recent years rising to become the concept of value networks where the links of the value chain are invested in flow management and is part of customer preferences followed by management all business processes, distribution, product design, etcetera. To deliver a deal valued by the market. In this new approach, enterprise networks where nodes are actors, companies, individuals or entities from which the interdependent relationships are established by organizations to adopt more horizontal, flexible, configurable and efficient structures are woven. In the past, the ... ... middle of 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 Sunbelt Social Network Conference, Charleston, South Carolina, February 18-21,1999. • Mark Casson & Howard Cox (1993). International Business Networks: Theory and History. Business and Economic History, Volume Twenty-two, no. 1, Fall 1993. • Jeremiah Gonzalez (2010). Understanding the Role of Social Capital and School Structure on Latino Academic Success. LUX: A Journal of Transdisciplinary Writing and Research from Claremont Graduate University, Vol. 2 [2013], Iss. 1, Art. 16. • Gabriel Yoguel (2000). Creación de competencias en ambientes locales y redes productivas. Revista de la Cepal 71 (2000). • Dr. Tanja Kontinen (2013). Slides from the subject “Business strategies for International Growth”.

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