Technological Network and Firm Performance: An Empirical Study of the Semiconductor Industry

This study examines whether or not the positions of the network affect firm performance. A sample set involves 35 firms in the semiconductor industry, including four main subsidiary industries: fables, IC manufacturing, packaging and testing. Different from previous research, this study tests relational measurement and firm performance. We collected patent citation data to represent diverse organizations and provided evidence that positions within networks, as defined in terms of contact and controlled positions within networks are related to firm performance. As hypothesized, firm performance was positively related to degree centrality and betweenness centrality in networks, and was negatively related to constraints in networks. Results show that betweenness centrality was significantly and positively related to firm performance.