Navigating underperformance: how aspirations shape network brokerage

Behavioural theory of firm posits that a firm’s subsequent behaviour is shaped by performance relative to its aspirations. What remains to be explored is its impact on the way firms configure the alliance network. In this paper, we propose hypotheses to examine how performance below aspiration levels influences network brokerage. Through the panel of U.S. listed biopharmaceutical firms, our findings indicate that when performance falls below aspiration levels, firms tend to span structural holes to gain the benefits of brokerage. A longer duration of underperformance reduces this motivation, while slack intensifies the brokerage behaviour. Theoretical and managerial implications are discussed.