The Roles of Supply Network Centralities in Firm Performance and the Moderating Effects of Reputation and Export-orientation

This study explores how supply network degree, closeness, and betweenness centralities affect firm performance, and the moderating effects of organizational reputation (measured by PageRank centrality) and export-orientation. The supply chain relationship empirical data are drawn from manufacturing and manufacturing service companies in Hong Kong, China. Social network analysis and moderated regression analysis were adopted to test the hypotheses for a sample of 814 focal firms with 3086 supply chain ties. The results indicate that in-degree and closeness centralities improve firm performance. Reputation is found to positively moderate the relationship between closeness and sales performance, but negatively moderates the relationship between betweenness and sales performance. Export-orientation has no effect on relationships. This study contributes to the literature by providing additional empirical evidence on the role of supply network position in firm performance. It also introduces PageRank centrality as a new measure of organizational reputation in a supply network.