Firm’s Network Position and Business Performance
Firm’s Network Position and Business Performance

Summary/Abstract: The theory of business networks has attracted increasing attention in recent years.It assumes that the competitive advantage of a firm depends on its business relationshipswith various entities. The quality and number of business relationships a firm maintainsshape its network position, which influences the firm’s performance. The aim of this paperis to propose a framework for analysing the development of the firm’s position in the businessnetwork in the context of the firm’s performance. A literature review method was usedin the paper. Based on a literature analysis and the authors’ earlier research, the proposedframework suggests that a firm’s network position changes constantly due to continuouschanges in the determinants of its network position and continuous changes in the firm’sbehaviour as it develops its network position. In turn, changes in the network positionimpact the firm’s performance.

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