Resource Configuration, Inter-Firm Networks, and Organizational Performance
33 Pages Posted: 10 Mar 2012 Last revised: 14 Apr 2016
Date Written: April 5, 2016
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.
Keywords: networks, social capital, strategic alliances, resource-based view
JEL Classification: D23, L14, L24, M2, Z13
Suggested Citation: Suggested Citation