Resource configuration, inter-firm networks, and organizational performance

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

Empirically-documented associations between network position and organizational performance could be driven by unobserved resources. I study this issue theoretically, by developing an equilibrium model of inter-firm network formation. Specifically, I investigate how an organization's resource configuration impacts both network position and performance. Under certain conditions, I show that variation in resources induces no relationship between performance and either degree or centrality; or this relationship is even negative. This result is driven by the existence of organizations that find highly complementary partners. Such organizations perform well and focus most resources within the highly-complementary alliance, which in turn makes them less central.

Original languageEnglish
Pages (from-to)37-48
Number of pages12
JournalMathematical social sciences
Volume82
DOIs
Publication statusPublished - 1 Jul 2016

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