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Knowledge spillover in corporate financing networks: embeddedness and the firm's debt performance

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Building on social embeddedness theory, we examine how the competencies and resources of one corporate actor in a network are transferred to another actor that uses them to enhance transactions with a third actor - a strategic process we dub network transitivity. Focusing on the properties of network transitivity in the context of small-firm corporate finance, we consider how embedded relations between a firm and its banks facilitate the firm's access to distinctive capabilities that enable it to strategically manage its trade-credit financing relationships. We apply theory and original case-study fieldwork to explore the types of resources and competencies available through bank-firm relationships and to derive hypotheses about how embedded bank-firm relationships affect the strategy of small- to medium-sized firms. Using a separate large-scale data set, we then test the generalizability of our hypotheses. Our qualitative analyses show that embedded bank-firm ties provide special governance arrangements that facilitate the firm's access to bank-centered informational and capital resources, which uniquely enhance the firm's ability to manage trade credit. Consistent with our arguments, our statistical analyses show that small- to medium-sized firms with embedded ties to their bankers were more likely to take lucrative early-payment trade discounts and avoid costly late-payment penalties than were similar firms that lacked embedded ties - suggesting that social embeddedness beneficially affects the financial performance of the firm.Printed Journal

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Ketersediaan

Call Number	Location	Available
	PSB lt.dasar - Pascasarjana	1

Penerbit	: John Wiley & Sons
Edisi	-
Subjek	Finance Entrepreneurship Alliances Networks embeddedness
ISBN/ISSN	1432095
Klasifikasi	-
Deskripsi Fisik	-
Info Detail Spesifik	-
Other Version/Related	Tidak tersedia versi lain
Lampiran Berkas	Tidak Ada Data