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

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

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

24 Citations (Scopus)

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.

Original languageEnglish
Peer-reviewed scientific journalJournal of Business Research
Volume69
Issue number6
Pages (from-to)2113-2117
ISSN0148-2963
DOIs
Publication statusPublished - 2016
MoE publication typeA1 Journal article - refereed

Keywords

  • 512 Business and Management
  • Alliance management capability
  • Inter-organizational relationships
  • Nonlinear relationship
  • Small firms

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