The Overlapping of Firm’s Interpersonal Network and Supply Chain Network and the Relationship between Network Centrality and Firm Performance-The Case of Electronic Industry in Taiwan
Date Issued
2009
Date
2009
Author(s)
Lin, Wan-Ting
Abstract
The social network of a company constitutes one of its social capitals that could contribute to its financial performance. There are two major types of corporate social network: interpersonal network and cooperative network. Interpersonal network might facilitate the establishment of cooperative network. In addition, a firm’s power in its social network might affect its financial performance. This study attempts to investigate: (1) whether the interpersonal network of firms overlaps with their cooperative network, and (2) whether the power possesses by a firm in its cooperative network affects its financial performance. We define the interpersonal network as business group membership, management linkage, large shareholders linkage, and directorate interlock. On the other hand, we define the cooperative network as the supply chain network. By analyzing the data of publicly-listed Taiwanese information electronics companies, we find that their supply chain network partially overlaps with their interpersonal network. The degree of overlapping between various interpersonal networks and the 3-cliques supply chain network is about 80%. We also find that firms with more power in the supply chain network enjoy higher gross profit percentage; however, they incur higher operating expenses as well. We do not find a clear relationship between network power and operating income.
Subjects
Industrial network
supply chain network
information electronics industry
social network analysis
firm performance
File(s)![Thumbnail Image]()
Loading...
Name
ntu-98-R96722032-1.pdf
Size
23.32 KB
Format
Adobe PDF
Checksum
(MD5):f18d4b32c1a0f0e46bf6d5f925064ea3