Linking firms' strategies with firm performance: mediating role of network value in telecom industry

Abstract

PurposeThe purpose of the current study is to investigate the role network value of firm on the relationship between firm strategic initiatives on firm performance by managing the market antecedents including user's expectations, user's coordination and user's compatibility.Design/methodology/approachThe current study uses secondary date of telecom industry of Pakistan, India and China. The data obtained were later subjected to the analysis using CASUALMED procedures of statistical analysis software (SAS).FindingsThe findings from the study projected that strategic drivers played an important role in leveraging the firms' performance. The results also confirm that in order to increase the firm performance, the network value of firms' plays a very crucial role.Research limitations/implicationsDespite making novel contribution, the present study has few limitations, need researchers' attention to be explained in the future, which includes narrow population size, not being able to work on indirect network effects and the theoretical explanation of behavioral antecedents of network value.Practical implicationsThe present research have potential applications for managers of telecom industry, which in turn would help them to develop the strategies that they could build to leverage their network value and firms' performance.Originality/valueThe current study has made a considerable contribution in the literature by proposing a model that adds to the theoretical foundation of strategic management of the firm. So, closely considering these insights would be helping for the firms to leverage its network value in mobile telecommunication industry.