Analysing a unique, domain-similar database including all horticulturalists in a major flower-producing country, this paper shows that a firm’s central position in a network significantly improves its financial performance. The effect of strategic positioning in a network is in large part mediated through its enhanced innovativeness. Strategically positioning in a network of firms contributes more to firm performance, both directly as well as indirectly, than other strategic options a firm has available, such as seeking scale, seeking to diversify, pursuing cost advantages, or locating in a cluster.

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Keywords firm strategies, Innovation, network position, performance
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Journal Technology Analysis & Strategic Management
Dolfsma, W.A, & van der Eijk, A.R. (2017). Network position and firm performance – the mediating role of innovation. Technology Analysis & Strategic Management, 29(6), 556–568. doi:10.1080/09537325.2016.1216095