Network diversity and supplier network performance: a case study

Through combining the portfolio theory and business network theory, the paper tries to analyse the supplier network performance from network ties, network structure and node activity and investigates which is the factor affecting supplier network performance mostly in network ties, network structure and node activity respectively. The results show that information sharing and staff exchanging in network ties, business proportion in network structure, ranking of Midea in vendors' offering companies and strength of technical cooperation in node activity are the most important factors affecting the performance of Midea air-conditioning division's supplier network. The implications of these findings for supplier network management related with focal company's benefits are discussed and limitations and recommendations for future research are also presented.