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Network embeddedness, specialization choices and performance in investment banking industry

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  • Farina, Vincenzo

Abstract

The idea that network structure and embeddedness affect firms’ competitive behavior and performance is not new both in network literature and in strategic management literature. This study recognizes that the possibility to fully exploit network opportunities is depending on firm specialization choices. By analyzing network embeddedness within the European investment banking industry, I find that banks enhance performance by having a central position in their network and that specialization reduces bank’s benefits of having a central position in the network.

Suggested Citation

  • Farina, Vincenzo, 2008. "Network embeddedness, specialization choices and performance in investment banking industry," MPRA Paper 11701, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:11701
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    References listed on IDEAS

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    Cited by:

    1. Stefanelli, Valeria & Matteo, Cotugno, 2010. "An Empirical Analysis on Board Monitoring Role and Loan Portfolio Quality Measurement in Banks," MPRA Paper 29766, University Library of Munich, Germany.
    2. Golonka, Monika, 2011. "Uwarunkowania Kulturowe A Powiązania Międzyfirmowe W Sektorach Globalnych. Perspektywa Empiryczna [Culture Factors And Interfirm Ties In Global Sectors. Empirical Perspective]," MPRA Paper 35492, University Library of Munich, Germany, revised 22 Oct 2011.
    3. Dossou, Smith A.R. & Aoudji, Augustin K. N. & Vissoh, Pierre & Zannou, Afio, 2021. "Effect of Social Networks and Performance of Young Women Agribusiness Owners in a Developing Country: The Moderating Effect of Business Environment," 2021 Conference, August 17-31, 2021, Virtual 315361, International Association of Agricultural Economists.
    4. Mandakini Das & Nivedita Goswami, 2019. "Effect of entrepreneurial networks on small firm performance in Kamrup, a district of Assam," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 9(1), pages 1-14, December.
    5. Hee Dae Kim & Duk Hee Lee & Hochull Choe & Il Won Seo, 2014. "The evolution of cluster network structure and firm growth: a study of industrial software clusters," Scientometrics, Springer;Akadémiai Kiadó, vol. 99(1), pages 77-95, April.
    6. Monika Golonka & Robert Rzadca, 2013. "Does a connection exist among national culture, alliance strategy, and leading ICT firms' performance?," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 14(sup1), pages 395-412, June.

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    More about this item

    Keywords

    Investment Banking; IPOs; Underwriting syndicates; Social network analysis;
    All these keywords.

    JEL classification:

    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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