Network Horizon and the Sustainability of Network-based Competitive Advantage

48 Pages Posted: 15 Feb 2007

See all articles by Diederik W. van Liere

Diederik W. van Liere

University of Toronto - 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)

Date Written: 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 Classification: L20, D20

Suggested Citation

van Liere, Diederik W. and Koppius, Otto, Network Horizon and the Sustainability of Network-based Competitive Advantage (February 14, 2007). Available at SSRN: https://ssrn.com/abstract=963040 or http://dx.doi.org/10.2139/ssrn.963040

Diederik W. Van Liere (Contact Author)

University of Toronto - Rotman School of Management ( email )

105 St. George Street
Toronto, Ontario M5S 3E6 M5S1S4
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)

P.O. Box 1738
3000 DR Rotterdam
Netherlands

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