Niche and performance: the moderating role of network embeddedness

Niche and performance: the moderating role of network embeddedness What is the relationship between niche and performance? We identify two types of niche positions—product niche and process niche—defined by the extent to which a firm offers distinctive products and has distinctive operational processes, respectively. We argue that the effect of each niche on firm performance is contingent upon network embeddedness—the extent to which a firm is involved in a network of interconnected inter‐firm relationships. Using data covering the period 1995–98 pertaining to venture capital firms and their holdings in initial public offerings (IPOs), we show that both product niche and process niche interact with network embeddedness to determine firm performance. Our findings suggest that the extent to which a firm offers distinctive products or processes will be more positively associated with firm performance when network embeddedness is high. Copyright © 2004 John Wiley & Sons, Ltd. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Strategic Management Journal Wiley

Niche and performance: the moderating role of network embeddedness

Strategic Management Journal, Volume 26 (3) – Mar 1, 2005

Loading next page...
 
/lp/wiley/niche-and-performance-the-moderating-role-of-network-embeddedness-CaOqG4B967
Publisher
Wiley
Copyright
Copyright © 2004 John Wiley & Sons, Ltd.
ISSN
0143-2095
eISSN
1097-0266
DOI
10.1002/smj.443
Publisher site
See Article on Publisher Site

Abstract

What is the relationship between niche and performance? We identify two types of niche positions—product niche and process niche—defined by the extent to which a firm offers distinctive products and has distinctive operational processes, respectively. We argue that the effect of each niche on firm performance is contingent upon network embeddedness—the extent to which a firm is involved in a network of interconnected inter‐firm relationships. Using data covering the period 1995–98 pertaining to venture capital firms and their holdings in initial public offerings (IPOs), we show that both product niche and process niche interact with network embeddedness to determine firm performance. Our findings suggest that the extent to which a firm offers distinctive products or processes will be more positively associated with firm performance when network embeddedness is high. Copyright © 2004 John Wiley & Sons, Ltd.

Journal

Strategic Management JournalWiley

Published: Mar 1, 2005

References

  • Does venture capital require an active stock market?
    Black, Black; Gilson, Gilson
  • Businesses without glamour? An analysis of resources on performance by size and age in small service and retail firms
    Brush, Brush; Chaganti, Chaganti
  • Strategic market analysis and definition: an integrated approach
    Day, Day
  • An empirical analysis of strategy types
    Galbraith, Galbraith; Schendel, Schendel
  • An application of clustering for strategic group analysis
    Harrigan, Harrigan
  • Construct validity of an objective (entropy) categorical measure of diversification strategy
    Hoskisson, Hoskisson; Hitt, Hitt; Johnson, Johnson; Moesel, Moesel
  • Predictors of performance of venture capitalist‐backed organizations
    Jain, Jain
  • Venture capitalists and the oversight of private firms
    Lerner, Lerner
  • An ecology of affiliation
    McPherson, McPherson
  • A taxonomy of business‐level strategies in global industries
    Morrison, Morrison; Roth, Roth
  • The long‐run performance of initial public offerings
    Ritter, Ritter
  • Venture capitalist relationships in the deal structuring and post‐investment stages of new firm creation
    Steier, Steier; Greenwood, Greenwood

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Search

Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly

Organize

Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.

Access

Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve

Freelancer

DeepDyve

Pro

Price

FREE

$49/month
$360/year

Save searches from
Google Scholar,
PubMed

Create folders to
organize your research

Export folders, citations

Read DeepDyve articles

Abstract access only

Unlimited access to over
18 million full-text articles

Print

20 pages / month

PDF Discount

20% off