Depth vs. Breadth: Network Strategy in Emerging Markets

Abstract

ABSTRACTUsing survey data from China and India, we explore the impact of network strategy of new ventures in emerging markets. We focus on two critical dimensions of network strategy, namely, broadening and deepening the network and two types of knowledge: market knowledge and technological knowledge. We find that proactive network deepening is associated with market knowledge and network broadening with technological knowledge. From a network perspective, our work highlights the counterintuitive outcomes of breadth versus depth orientation in network strategy, highlighting differences between advanced and emerging economies. We use a post-hoc multi-group analysis to show the differences even within the two emerging markets: India and China. The direct effect of partnering proactiveness on market knowledge in India is significantly higher than that in China but there is no significant difference as to the effect of technological knowledge. We use this exploratory study to highlight the opportunities for network and entrepreneurship scholars to study emerging markets and, in particular, undertake comparative studies between new ventures in China and India.