Value from Networks
Network formation plays an important role in the enhancement of firm performance and its innovation capability, as knowledge and technology sharing are crucial resources for firm development.
Resources are typically the key factor for a firm’s success, determining its growth, profitability and sustained competitive advantage. Under this perspective, the processes of interaction in which companies combine and recombine resources at the network level gains particular importance as those interactions could positively affect company output.
Networks may be defined as multiple layers of connections between firms and various other institutions and agencies and those links become particularly essential in the case of small and medium sized companies or early-stage businesses.