• Why They Connected: A Theoretical Analysis on the Cause of Interfirm Network Formation   [MASS 2014]
  • Author(s)
  • zhengqun zhan
  • Empirical studies have demonstrated that the motivations which lead a firm to construct networks are diversified, and are usually a synthetic result from different type motivations. We found that firms construct their networks for many different reasons, including economic (reducing costs, obtaining scarce resources, improving market competitiveness, etc.), and social (as when a new or small-scaled firm joins a well-established network to improve their image and acquire social recognition or legitimacy).The construction of an interfirm network is driven firstly by resource reliance. Secondly, economic benefits and an improvement in market position brought about by such networks have driven many firms to construct interfirm networks. Finally, the social restraints arise mainly from the pressures imposed by social norms.
  • Theoretical Analysis, Interfirm Network Formation
  • References

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