Interfirm network structure and firm resources: Towards a unifying concept

Jesse Karjalainen*, Aku Valtakoski, Ilkka Kauranen

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

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Abstract

PURPOSE: The objective of this paper is to propose a concept of network resource distribution that systematically unifies the resource-based and network-based perspectives on interfirm networks and enables integrated analysis of how firm resources and network structure interact to affect firm performance. METHODOLOGY: This conceptual paper first reviews the extant literature on interfirm networks and then develops the unifying concept of network resource distribution. FINDINGS: The literature review indicates that strategy scholars have long sought to integrate the resource-based view and the social network explanations of firm performance but, thus far, only a partial integration has been achieved. In particular, studies on the resource-level heterogeneity of interfirm networks have largely been limited to the analysis of firm dyads. How firm resources and network structure beyond the immediate network partners interact to affect firm performance has not yet been adequately addressed. The proposed unified concept of network resource distribution systematizes prior research and illuminates how network structure and firm resources interact to affect firm performance beyond the immediate network partners. IMPLICATIONS FOR THEORY AND PRACTICE: For theory, this paper highlights gaps in the extant literature on interfirm networks and proposes a unifying concept that can be utilized to address these gaps and to develop further theory in the area. For practice, this paper encourages managers not to limit their analyses of strategic alliances to immediate partnerships; it is also crucial to consider the partners and their resources, and reflect on how they are related to one another outside of the immediate partnership portfolio. ORIGINALITY AND VALUE: Network resource distribution is a novel concept that ties together and systematizes various strands of research on interfirm networks, thus providing a foundation for future research in the area. The concept is also amenable to detailed operationalization, facilitating subsequent quantitative testing of theoretical arguments combining firm resources and the structure of a network.

Original languageEnglish
Pages (from-to)227-264
Number of pages38
JournalJournal of Entrepreneurship, Management and Innovation
Volume17
Issue number3
DOIs
Publication statusPublished - 2021
MoE publication typeA1 Journal article-refereed

Keywords

  • resource-based view
  • strategic networks
  • interorganizational relations
  • alliances
  • firm performance
  • ALLIANCE PORTFOLIO DIVERSITY
  • KNOWLEDGE NETWORKS
  • COLLABORATION NETWORKS
  • COMPETITIVE ADVANTAGE
  • ABSORPTIVE-CAPACITY
  • STRATEGIC ALLIANCES
  • SOCIAL-STRUCTURE
  • EXPLORATORY INNOVATIONS
  • VALUE CREATION
  • PERFORMANCE

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