The theory of business networks has attracted increasing attention in recent years.
It assumes that the competitive advantage of a firm depends on its business relationships
with various entities. The quality and number of business relationships a firm maintains
shape its network position, which influences the firm’s performance. The aim of this paper
is to propose a framework for analysing the development of the firm’s position in the business
network in the context of the firm’s performance. A literature review method was used
in the paper. Based on a literature analysis and the authors’ earlier research, the proposed
framework suggests that a firm’s network position changes constantly due to continuous
changes in the determinants of its network position and continuous changes in the firm’s
behaviour as it develops its network position. In turn, changes in the network position
impact the firm’s performance.
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