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Network partner diversity, network capability, and sales growth in small firms

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  • Parida, Vinit
  • Patel, Pankaj C.
  • Wincent, Joakim
  • Kohtamäki, Marko

Abstract

Network partner diversity, which is the extent to which a firm possesses diverse network partners, could be beneficial to firms. Increased levels of network diversity, however, may result in declining sales growth. The study proposes that network capability can help manage the scope of diverse relationships effectively and by doing moderate inverted U-shaped relationship between network partner diversity and sales growth. Building on survey data and prospective five year sales growth data from archival sources, the study finds that an increased level of network diversity has a negative effect on sales growth, but network capability moderates the relationship.

Suggested Citation

  • Parida, Vinit & Patel, Pankaj C. & Wincent, Joakim & Kohtamäki, Marko, 2016. "Network partner diversity, network capability, and sales growth in small firms," Journal of Business Research, Elsevier, vol. 69(6), pages 2113-2117.
  • Handle: RePEc:eee:jbrese:v:69:y:2016:i:6:p:2113-2117
    DOI: 10.1016/j.jbusres.2015.12.017
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    References listed on IDEAS

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    Cited by:

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    2. Santoro, Gabriele & Bertoldi, Bernardo & Giachino, Chiara & Candelo, Elena, 2020. "Exploring the relationship between entrepreneurial resilience and success: The moderating role of stakeholders' engagement," Journal of Business Research, Elsevier, vol. 119(C), pages 142-150.
    3. Munjal, Surender & Requejo, Ignacio & Kundu, Sumit K., 2019. "Offshore outsourcing and firm performance: Moderating effects of size, growth and slack resources," Journal of Business Research, Elsevier, vol. 103(C), pages 484-494.
    4. Maurizio Cisi & Francesco Devicienti & Alessandro Manello & Davide Vannoni, 2020. "The advantages of formalizing networks: new evidence from Italian SMEs," Small Business Economics, Springer, vol. 54(4), pages 1183-1200, April.
    5. Abdul Majid & Muhammad Yasir & Muhammad Yasir & Zahid Yousaf, 0. "Network capability and strategic performance in SMEs: the role of strategic flexibility and organizational ambidexterity," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 0, pages 1-24.
    6. Taheri, Mozhdeh & van Geenhuizen, Marina, 2019. "Knowledge relationships of university spin-off firms: Contrasting dynamics in global reach," Technological Forecasting and Social Change, Elsevier, vol. 144(C), pages 193-204.
    7. O'Dwyer, Michele & Gilmore, Audrey, 2018. "Value and alliance capability and the formation of strategic alliances in SMEs: The impact of customer orientation and resource optimisation," Journal of Business Research, Elsevier, vol. 87(C), pages 58-68.
    8. Dandan Li & Yehua Dennis Wei & Changhong Miao & Yangyi Wu & Weiye Xiao, 2019. "Innovation, Network Capabilities, and Sustainable Development of Regional Economies in China," Sustainability, MDPI, Open Access Journal, vol. 11(17), pages 1-21, September.
    9. Roberto Gabriele & Andrea Mazzitelli & Giuseppe Espa & Maria Michela Dickson, 2019. "Capabilities and firm growth: the role of formal collaboration agreements," DEM Working Papers 2019/16, Department of Economics and Management.
    10. Sang Yoon Shin, 2019. "Network advantage’s effect on exit performance: examining venture capital’s inter-organizational networks," International Entrepreneurship and Management Journal, Springer, vol. 15(1), pages 21-42, March.

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