Resource configuration, inter-firm networks, and organizational performance

Fernando Anjos ()

Mathematical Social Sciences, 2016, vol. 82, issue C, 37-48

Abstract: 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.

Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:eee:matsoc:v:82:y:2016:i:c:p:37-48

DOI: 10.1016/j.mathsocsci.2016.04.003

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