Networks

Networks

Author: Marius Kahlert, UTwente

Firms are not automous entities but are embedded in social, professional and exchange relationships with other actors within and across industry borders. In this regard it is comprehensible that networks significantly influence the firm performance and can even be a source of competitive advantage. Zaheer, Gözübüyük and Milanov (2010) discuss four theoretical mechanisms of networks:

(1) Networks as resource access: Networks allow organizations to access resources and capabilities, with information as primary resources.