Network architecture and firm performance A resou

Authors: Qin Wang Shanxing Gao

Publish Date: 2011/12

Volume: 5, Issue: 4, Pages: 559-

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Abstract

Previous studies have investigated alliance networks primarily from two alternative views a relational view that focuses on the “strength of strong/weak ties” or a structural view that refers to a firm’s position and structural embeddedness We posit a firm’s network architecture ie the portfolio of strong/weak ties influences its conduct and performance From a resourcebased view the network architecture itself could be a source of sustained competitive advantage We argue that both network architecture and duration of a firm can enhance its performance However their effects and the interaction are contingent on different performance outputs Using strategic alliance networks data from a survey of the manufacturing industry in China we examine the performance implications of network architecture Results suggest that benefits from networks may evolve with network duration hence firms should search for optimal network configurations By integrating an alliance portfolio firms with dual network architectures can enjoy both the strengths of strong ties and weak ties and avoid the risks inherent in a pure strong/weaktie network

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