Firms and their networks

• Firms are not only means of production, finance, labor, contracts. Firms' networks are part of the firm.
• Workers or CEOs and their social relations, suppliers are examples of such networks.
• These networks may enhance firm's productivity but they may also have a detrimental effect on governance.

I present a summary of virtually ten years of research using a simple point of view in which firms among other assets, use networks to perform a wealth of tasks: hiring, firing, buying from suppliers, governing the firm … Access to such networks is rarely included when financiers assess the value of a firm. This line of research suggests that they should.