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The downside of prominence in a network of marketing alliances

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  • Watts, Jameson K.M.
  • Koput, Kenneth W.

Abstract

The authors investigate how a firm's position in a network of marketing alliances affects performance for firms experiencing different levels of uncertainty. A more prominent position—having many, well-connected marketing alliances—is typically theorized to improve the performance of a firm. However, we find that a prominent network position can instead hurt performance when uncertainty is high. Practically, these results can help both researchers and practitioners identify when the risks of marketing alliances outweigh the rewards. Theoretically, they provide a plausible explanation for past research that failed to detect a positive relationship between marketing alliances and firm performance.

Suggested Citation

  • Watts, Jameson K.M. & Koput, Kenneth W., 2019. "The downside of prominence in a network of marketing alliances," Journal of Business Research, Elsevier, vol. 104(C), pages 196-205.
    • Handle: RePEc:eee:jbrese:v:104:y:2019:i:c:p:196-205
    DOI: 10.1016/j.jbusres.2019.07.012
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    Cited by:

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    5. Chen, Zonghao & Keefe, Michael O'Connor & Watts, Jameson K.M., 2020. "Board of director compensation in China: It pays to be connected," Pacific-Basin Finance Journal, Elsevier, vol. 63(C).
    6. Sun, Wenbin & Ding, Zhihua & Xu, Xiaobo & Cui, Kacie, 2020. "Internationalization and firm default risk: The roles of environmental dynamism and marketing capability," Journal of Business Research, Elsevier, vol. 121(C), pages 142-153.

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