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Therefore, there is need for a theoretical framework to systematize the vast network-related literature and make sense of network effects on firm performance.
Although network theory provides a valid theoretical foundation, the mechanisms behind network effects on firm performance are complex to understand and prevailing research provides only limited insights.
Digital technology has dissolved previously stable industries and linear value chains in favor of dynamically emerging networks increasing the necessity to discuss structural effects on firm performance.
Innovation effects on firm performance vary from innovation type (Gunday et al. 2011), whether it is a product, process, organizational, or marketing innovation.
Most studies are particularly concerned with contingent explanations for beneficial network effects, thereby neglecting the complexity of network effects on firm performance as well as how firms exert agency and intentionally alter their networks.
A recent study by Baum et al. (2014) casts doubt on the validity of empirical results regarding the impact of network effects on firm performance and, thereby, challenges derived strategic prescriptions regarding network positions.
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Overall, the findings reveal that IEC plays an important role in strategy formulation and strategy implementation, although it does not directly effect on firm performance.
Implications for both industry and universities, including their effect on firm performance, are discussed.
Among potential activities, pricing is unique: pricing has a direct and substantial effect on firm performance.
This study aims to investigate the determinants of green innovation adoption and its effect on firm performance.
Batt has written extensively on human resource practices and their effect on firm performance, the quality of jobs, and wage and employment outcomes.
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CEO of Professional Science Editing for Scientists @ prosciediting.com