Network position and firm performance–the mediating role of innovation

Wilfred Dolfsma*, René van der Eijk

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

25 Citations (Scopus)

Abstract

Analysing a unique, domain-similar database including all horticulturalists in a major flower-producing country, this paper shows that a firm’s central position in a network significantly improves its financial performance. The effect of strategic positioning in a network is in large part mediated through its enhanced innovativeness. Strategically positioning in a network of firms contributes more to firm performance, both directly as well as indirectly, than other strategic options a firm has available, such as seeking scale, seeking to diversify, pursuing cost advantages, or locating in a cluster.

Original languageEnglish
Pages (from-to)556-568
Number of pages13
JournalTechnology Analysis and Strategic Management
Volume29
Issue number6
DOIs
Publication statusPublished - 3 Jul 2017
Externally publishedYes

Keywords

  • firm strategies
  • Innovation
  • network position
  • performance

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