Supplier concentration and firm performance: the role of relative size, relative reputation, and network position

Key Points

• Supplier concentration significantly influences firm performance, indicating that how firms manage supplier relationships matters.
• Relative size and reputation play critical roles, highlighting the dynamics that can enhance or impair firm performance.
• Observational analysis of network position reveals that firms with advantageous networks outperform others with weaker connections.
• Effective management of supplier relationships is essential, as this can lead to improved overall performance and competitive advantage.