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The dynamic impact of inter-firm network agreements

Author

Listed:
  • Valentina Pieroni

    (IMT School for Advanced Studies Lucca)

  • Nicola Lattanzi

    (IMT School for Advanced Studies Lucca)

  • Massimo Riccaboni

    (IMT School for Advanced Studies Lucca)

Abstract

This paper sheds new light on the dynamic effects of inter-firm network agreements on firm performance and investigates whether the specific combination of partner profiles triggers heterogeneous causal effects. Using a staggered difference-in-differences design, we find that participation in network agreements has a persistent impact on firms’ revenues, value added, and EBITDA that is amplified at least through the third year of collaboration. Our results show that micro firms benefit more from collaboration in network agreements, especially when they enter into relationships with larger partners. In addition, companies benefit more from network ties when most of their partners belong to the same travel-to-work area.

Suggested Citation

  • Valentina Pieroni & Nicola Lattanzi & Massimo Riccaboni, 2024. "The dynamic impact of inter-firm network agreements," Small Business Economics, Springer, vol. 63(3), pages 939-969, October.
    • Handle: RePEc:kap:sbusec:v:63:y:2024:i:3:d:10.1007_s11187-023-00842-7
    DOI: 10.1007/s11187-023-00842-7
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    More about this item

    Keywords

    Strategic alliances; Network agreement; Staggered Difference-in-Differences; Dynamic treatment effects; Industrial policy;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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