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Network Horizon and the Sustainability of Network-based Competitive Advantage

Diederik W. Van Liere
University of Toronto - Joseph L. Rotman School of Management; Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM); RSM Erasmus University

O. Koppius
Rotterdam School of Management, Erasmus University; Erasmus Research Institute of Management (ERIM) - Joint Research Institute of Rotterdam School of Management (RSM) and Erasmus School of Economics (ESE), EUR

February 14, 2007

Abstract:
Recognizing advantageous network positions is key for firms to obtain and sustain competitive advantage. Exploiting these opportunities requires that firms have information about the network structure. We introduce a construct called network horizon to capture this information. We demonstrate, using a computational model of network dynamics, that a firm's network horizon as well as the heterogeneity of network horizons in the network, are two important determinants for the sustainability of network-based competitive advantage.

Keywords: structural hole, bridging position, competitive advantage, network dynamics

JEL Classifications: L20, D20

Working Paper Series

Date posted: February 15, 2007 ; Last revised: February 15, 2007

Suggested Citation

Van Liere, Diederik W. and Koppius, O., Network Horizon and the Sustainability of Network-based Competitive Advantage (February 14, 2007). Available at SSRN: http://ssrn.com/abstract=963040

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Contact Information

Diederik W. Van Liere (Contact Author) University of Toronto - Joseph L. Rotman School of Management ( email ) 105 St. George Street Toronto, Ontario M5S 3E6 Canada
Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM) ( email ) Burgemeester Oudlaan 50 P.O. Box 1738 Rotterdam Netherlands
RSM Erasmus University ( email ) Burgemeester Oudlaan 50 P.O. Box 1738 Rotterdam 3000 DR Netherlands +31104081778 (Phone)
Otto Koppius Rotterdam School of Management, Erasmus University ( email ) RSM Erasmus University PO Box 1738 3000 DR Rotterdam Netherlands +31 10 408 2032 (Phone) +31 10 408 9010 (Fax)
Erasmus Research Institute of Management (ERIM) - Joint Research Institute of Rotterdam School of Management (RSM) and Erasmus School of Economics (ESE), EUR P.O. Box 1738 3000 DR Rotterdam Netherlands

Abstract

References (69)

Date posted: February 15, 2007 ; Last revised: February 15, 2007

Suggested Citation

Contact Information

Diederik W. Van Liere (Contact Author)

Otto Koppius