Networks and competitive advantage: a synthesis and extension

Abstract

This article synthesizes streams of thought on network theory and proposes a network perspective of competitive advantage. Competitive advantage arises from the structural characteristics of the network in which the firm is embedded and its position in the same. Using concepts from network theory, the study develops a model that shows how the structural characteristics—connectedness, weak ties, structural holes and network centrality—lead to benefits such as adaptation, knowledge, control, and resources, which in turn lead to competitive advantage.

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