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Firm’s Network Position and Business Performance

Author

Listed:
  • Krzysztof Fonfara
  • Łukasz Małys
  • Milena Ratajczak-Mrozek

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 relationships with various entities. The quality and number of business relationships a firm maintains shape its network position, which influences the firm’s performance. The aim of this paper is to propose a framework for analysing the development of the firm’s position in the business network in the context of the firm’s performance. A literature review method was used in the paper. Based on a literature analysis and the authors’ earlier research, the proposed framework suggests that a firm’s network position changes constantly due to continuous changes in the determinants of its network position and continuous changes in the firm’s behaviour as it develops its network position. In turn, changes in the network position impact the firm’s performance.

Suggested Citation

  • Krzysztof Fonfara & Łukasz Małys & Milena Ratajczak-Mrozek, 2021. "Firm’s Network Position and Business Performance," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 2, pages 51-66.
    • Handle: RePEc:sgh:gosnar:y:2021:i:2:p:51-66
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    References listed on IDEAS

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    1. Anderson, Helén & Havila, Virpi & Andersen, Poul & Halinen, Aino, 1998. "Position and role-conceptualizing dynamics in business networks," Scandinavian Journal of Management, Elsevier, vol. 14(3), pages 167-186, March.
    2. John Child & Guido Möllering, 2003. "Contextual Confidence and Active Trust Development in the Chinese Business Environment," Organization Science, INFORMS, vol. 14(1), pages 69-80, February.
    3. Ulf Andersson & Mats Forsgren & Ulf Holm, 2015. "Balancing Subsidiary Influence in the Federative MNC: A Business Network View," Palgrave Macmillan Books, in: Mats Forsgren & Ulf Holm & Jan Johanson (ed.), Knowledge, Networks and Power, chapter 16, pages 393-420, Palgrave Macmillan.
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    More about this item

    Keywords

    business performance; network position;

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General

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