Do Technological Resources Influence Competitive Brokerage? An Analysis In A Competition Network

Abstract

Researchers have demonstrated that firms in relevant network positions exhibit better innovation and performance. However, there is a need to further understand the factors that enable firms to acquire specific network positions, especially in competition networks. In this study, we draw on the resource-based theory to investigate the role of technological resources in conjunction with other resources and capabilities in determining firms� competitive brokerage position within competition networks. Firms holding competitive brokerage positions rest either between the paths of other nodes or between disconnected nodes. Specifically, we propose that technological, commercial and intangible resources and their complementarities with IT-enabled information management capability influence the achievement of a competitive brokerage position. To test our model, we develop a novel competition network to depict multi-industry competitive relationships and competition asymmetry. This longitudinal competition network extends across 13 different industries from 2009 to 2011. Using a two-stage random effects Tobit estimation, we find that technological, commercial and intangible resources influence the competitive brokerage position of the firm. We find that technological resources foster competitive brokerage at an accelerating rate. Commercial resources have an inverted U-shaped relationship with competitive brokerage and intangible resources have a positive effect on the competitive brokerage position of the firm. Moreover, we find that information management capability does not directly affect competitive brokerage in an internal resource endowment context; rather, it complements intangible resources to influence the competitive brokerage position of the firm.