Operations efficiency and network position: implications for firm survival and M&A activity in the pharmaceutical industry
基于社会网络理论和资源基础观，研究了172家制药企业的运营效率如何影响其破产和并购概率，并发现供应商和客户网络中介位置会强化这些效应。
Purpose Grounding our expectations in social network theory and the resource-based view, we investigate how a firm's operations efficiency shapes its likelihood of survival and engagement in mergers and acquisitions (M&A) within the pharmaceutical industry context. We further examine how the firm's supplier and customer network positions moderate these effects. Design/methodology/approach We use data from 172 pharmaceutical firms and their supplier and customer networks to measure operations efficiency through data envelopment analysis and capture firms' network brokerage positions using betweenness centrality. We employ an instrumental variable probit regression to assess the hypothesized relationships. Findings The results indicate that operations efficiency reduces the likelihood of bankruptcy, an effect strengthened by higher customer network betweenness. Moreover, operations efficiency increases the probability of M&A activity, with supplier network betweenness positively moderating this relationship. Research limitations/implications By demonstrating that a firm's operations efficiency and network betweenness serve as complementary resources, this study motivates future research into how a firm's internal capabilities, such as operations efficiency and network structure, can jointly impact the firm's performance. Practical implications The study highlights network betweenness as a key moderator – supplier betweenness strengthens the effect of operations efficiency on M&A activity, while customer betweenness helps reduce bankruptcy risk. Originality/value This study emphasizes the role of operations efficiency in driving firm survival and M&A activity while advancing our understanding of how supplier and customer network betweenness interact with operations efficiency. By conceptualizing betweenness centrality as a brokerage capability, we demonstrate how its complementarity with operations efficiency fosters firms' performance.