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Performance gains and losses from network centrality in cluster located firms: a longitudinal study

Ferriani, S. & MacMillan, I. M. (2017). Performance gains and losses from network centrality in cluster located firms: a longitudinal study. Innovation: Organization & Management, 19(3), pp. 307-334. doi: 10.1080/14479338.2017.1341293


This paper develops and tests theoretically derived arguments on the performance trade-offs that arise when firms located inside geographical clusters broaden their cluster networks and increase their centrality. Using three-year longitudinal data gathered on a sample of 89 small media firms located in a geographical cluster of Northern Italy, we model growth in revenues and in employees as a function of their centrality in different types of networks. We find an inverted U-shaped effect of centrality across all types of networks. We also find strong evidence of negative interactivity between network types in predicting sales and employee growth. This result not only concurs with the view that centrality brings tangible and intangible benefits, but also provides empirical support for the contention that centrality fosters dispositions and disturbances that undermine performance.

Publication Type: Article
Additional Information: This is an Accepted Manuscript of an article published by Taylor & Francis Group in Innovation: Organization & Management on 07/07/2017, available online:
Publisher Keywords: Geographical clusters, interorganizational networks, firm performance, growth, network centrality
Departments: Bayes Business School > Management
SWORD Depositor:
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