The building of network relations and its impacts on firm growth within clusters

Yang Rui,Xia Bin

Science Research Management ›› 2016, Vol. 37 ›› Issue (5) : 103-111.

Science Research Management ›› 2016, Vol. 37 ›› Issue (5) : 103-111.

The building of network relations and its impacts on firm growth within clusters

  • Yang Rui 1, 2, Xia Bin1
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Abstract

The growth of firm is affected by the network relations mix designated and the network resources acquired. In combination with the resource-based view and the inter-organizational network theory, the paper constructs a conceptual framework of network relations-network resources-firm growth by specifying a simultaneously equations with mix-process model, based on firm-level survey data from Suzhou Textile industry cluster, to test the discrepant performance of firm growth in a cluster. The paper concludes that both entrepreneur cognition and firm innovation strategies affect the variance of network relations building and the firm growth performance through the network resources acquired within the cluster. Specifically, entrepreneurs with analytical cognition, and firms with combination of innovation strategies hold higher propensity to establish inter-firm network relations and non-firm network relations, meanwhile there exists a complimentary relationship in the network relations mix, and financial resources and trust, which are derived from inter-firm network relations, as well as knowledge and technology, which are acquired from non-firm network relations, have a significantly positive influence on the growth of firm within clusters.

Key words

network relations / network resources / growth of firm within clusters / textile industry cluster

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Yang Rui,Xia Bin. The building of network relations and its impacts on firm growth within clusters[J]. Science Research Management. 2016, 37(5): 103-111

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