The effects of interfirm network on firm growth: A case study

Interfirm network is the basis of getting sustainable competitive advantages over other industries by obtaining a variety of knowledge resources, and it is also the prerequisite and foundation of winning the growth and development of enterprises. In this paper, after recalling the theory of interfirm network and based on it, the author analyzes the different effects on firm´s early growth and development caused by social network and large sparse network relationship according to the related interfirm network theory, and makes a matching analysis in the two relationship patterns through the case study of CHINT Group. The author makes a conclusion that at the original stage, the firms employed close social relationship network and at the early stage, the close and simple sparse relationship is adopted, while at the mature stage, the firms use complex multi-level large sparse network.