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Strategizing in investment banking network

Vincenzo Farina (University of Rome Tor Vergata, Rome, Italy)

Journal of Strategy and Management

ISSN: 1755-425X

Article publication date: 23 February 2010

688

Abstract

Purpose

The purpose of this paper is to investigate how network position can influence performance of firms and how firm‐specific characteristics can mediate this relation by asking: “Does network position influence performance of its members?” and “How could specialization choices influence this network position‐performance relation?”

Design/methodology/approach

These aspects are examined by studying network position and specialization of actors operating in the investment banking industry in the Euro area, using data on all 279 underwriting syndicates formed during the years 2003‐2005. Data were pooled across actors and across these three years and the resulting sample had a total of 534 observations.

Findings

Results highlight that actors operating in the investment banking industry enhance performance by having a central position in their network and that specialization reduces the benefits of having a central position in the network.

Practical implications

The findings suggest that managers need to assess a firm's ability to get knowledge and information from its external environment in order to make adjustments based on firm alliance portfolios.

Originality/value

This paper uniquely contributes to the strategic management literature showing that the effect of a particular network position on performance depends on firm‐level characteristics.

Keywords

Citation

Farina, V. (2010), "Strategizing in investment banking network", Journal of Strategy and Management, Vol. 3 No. 1, pp. 20-31. https://doi.org/10.1108/17554251011019396

Publisher

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Emerald Group Publishing Limited

Copyright © 2010, Emerald Group Publishing Limited

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