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1 – 3 of 3N. Venkatraman, Chi-Hyon Lee and Bala Iyer
We develop and test a model of how a software firm's business strategy (product scope and market scope) interacts with the firm's network position (alliance degree and structural…
Abstract
We develop and test a model of how a software firm's business strategy (product scope and market scope) interacts with the firm's network position (alliance degree and structural holes) to impact performance. We test the joint-effects hypotheses on a sample 359 packaged software firms that have entered into 5,489 alliances involving 2,849 distinct firms during the time period, 1990–2002. While prior studies have demonstrated the importance of network positions as a determinant of firm strategy and performance, this chapter begins to examine the performance effects of how a firm's business strategy and network positions interact. We find support for three of the four hypotheses lending empirical support for our theoretical model. We develop implications for network-based perspectives of strategy and outline areas for further research.
Two core assumptions set network theory apart from other perspectives and direct research into specific strategic and organizational topics.