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Depth vs. Breadth: Network Strategy in Emerging Markets

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Abstract

Using survey data from China and India, we explore the impact of network strategy of new ventures in emerging markets. We focus on two critical dimensions of network strategy, namely, broadening and deepening the network and two types of knowledge: market knowledge and technological knowledge. We find that proactive network deepening is associated with market knowledge and network broadening with technological knowledge. From a network perspective, our work highlights the counterintuitive outcomes of breadth versus depth orientation in network strategy, highlighting differences between advanced and emerging economies. We use a post-hoc multi-group analysis to show the differences even within the two emerging markets: India and China. The direct effect of partnering proactiveness on market knowledge in India is significantly higher than that in China but there is no significant difference as to the effect of technological knowledge. We use this exploratory study to highlight the opportunities for network and entrepreneurship scholars to study emerging markets and, in particular, undertake comparative studies between new ventures in China and India.

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[Prashantham, Shameen] China Europe Int Business Sch, Int Business & Strategy, Shanghai, Peoples R China

[Zhou, Abby Jingzi] Univ Nottingham Ningbo, Ningbo, Peoples R China

[Dhanaraj, Charles] Temple Univ, Fox Sch Business, Strategy, Philadelphia, PA 19122 USA; Temple Univ, Fox Sch Business, Translat Res Ctr, Philadelphia, PA 19122 USA


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Source

Management and Organization Review

ISSN:1740-8776

Year:2020

Issue:2

Volume:16

Page:229-260

ESI Discipline:ECONOMICS & BUSINESS;

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