Network-centrality versus network-position in regional networks: what matters most? a study of a French high-tech cluster

Abstract

This research is concerned with the role of regional inter-firm networks and the position of a firm within a regional inter-firm network for entrepreneurial firm performance. Our results confirm that regional network size is a rough explanatory variable of firm performance, but it is one that hides more important network properties. More important than network size are favourable network positions such as structural holes. It seems that for entrepreneurial firms it is more important to build strong network positions by developing exclusive alliance networks instead of simply collaborating with the greatest number of firms within the region. The implications are important for both entrepreneurs in high-tech clusters as well as for policy-makers promoting cluster development.