The Management of Growth Strategies in Firm Networks: A Stylized Model of Opportunity Discovery via Network Ties

Handbook of Research on Competitive Strategy, (Ed.) G.B., Dagnino. Edward Elgar: Cheltenham, 2012

17 Pages Posted: 14 Mar 2014

See all articles by Simone Ferriani

Simone Ferriani

University of Bologna - Department of Management

Antonio Giuliani

IÉSEG School of Management; University of Illinois at Chicago - Department of Managerial Studies

Date Written: 2012

Abstract

This paper draws on the structural embeddedness perspective to conceptually address the following question: “What is the relation between firm growth and its structural position within a network of multirelational ties?” While the organizational approaches that have adhered to the structural embeddedness perspective build on the implicit assumption that the firm is embedded in multiple inter-firm networks, shaping the set of information, opportunities and external resources available to the firm, most research has focused on a single dimension. Typically, a certain organizational outcome is related to a set of relational variables derived from a single network. Seeking to address this conceptual gap, we develop an empirically testable theoretical model of how structural attributes of the firm, as well as the firm’s absorptive capacity influence the likelihood of firm growth. Asymmetries in growth potential arise because firms engage in multiple network relations that imply diverse access to information and opportunities as well as differential ability to assimilate such flows. The paper contributes two original insights to the organizational literature: first, it illustrates the importance of a multirelational conceptualization of firm embeddedness; second, it advances an original approach to network ties as enablers of firm growth.

Keywords: entrepreneurship, opportunity, discovery, growth, network, ties

Suggested Citation

Ferriani, Simone and Giuliani, Antonio, The Management of Growth Strategies in Firm Networks: A Stylized Model of Opportunity Discovery via Network Ties (2012). Handbook of Research on Competitive Strategy, (Ed.) G.B., Dagnino. Edward Elgar: Cheltenham, 2012, Available at SSRN: https://ssrn.com/abstract=2408205

Simone Ferriani

University of Bologna - Department of Management ( email )

Piazza Scaravilli 1
40126 Bologna, fc 47100
Italy

HOME PAGE: http://www2.sa.unibo.it/docenti/simone.ferriani/

Antonio Giuliani (Contact Author)

IÉSEG School of Management ( email )

Socle de la Grande Arche
1 Parvis de la Defense
Puteaux, Paris 92800
France

University of Illinois at Chicago - Department of Managerial Studies ( email )

601 S. Morgan St. (M/C 243)
University Hall 2203
Chicago, IL 60607-7122
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
29
Abstract Views
427
PlumX Metrics