Bridging ties: A source of firm heterogeneity in competitive capabilities

What explains differences in firms' abilities to acquire competitive capabi lities? In this paper we propose that a firm's embeddedness in a network of ties is an important source of variation in the acquisition of competitive capabilities. We argue that firms in geographical clusters that maintain n etworks rich in bridging ties and sustain ties to regional institutions are well-positioned to access new information ideas, and opportunities Hypothe ses based on these ideas were tested on a stratified random sample of 227 j ob shop manufacturers located in the Midwest United States. Data were gathe red using a mailed questionnaire. Results from structural equation modeling broadly support the embeddedness hypotheses and suggest a number of insigh ts about the link between firms' networks and the acquisition of competitiv e capabilities. Copyright (C) 1999 John Wiley & Sons, Ltd.