Network Horizon and the Sustainability of Network-based Competitive Advantage
48 Pages Posted: 15 Feb 2007
Date Written: February 14, 2007
Abstract
Recognizing advantageous network positions is key for firms to obtain and sustain competitive advantage. Exploiting these opportunities requires that firms have information about the network structure. We introduce a construct called network horizon to capture this information. We demonstrate, using a computational model of network dynamics, that a firm's network horizon as well as the heterogeneity of network horizons in the network, are two important determinants for the sustainability of network-based competitive advantage.
Keywords: structural hole, bridging position, competitive advantage, network dynamics
JEL Classification: L20, D20
Suggested Citation: Suggested Citation