Network myopia: An empirical study of network perception

The purpose of the paper is to examine the perception of network surroundings by managers. We scrutinize a random sample of 305 Polish logistics services firms in order to capture the managers' perception of direct and indirect relationships. We have identified a network myopia phenomenon, that is a narrow view of relevant actors and relationships in the firm's network environment. Our data suggest that managers rate vertical relationships along the supply chain much higher as compared to the value network, and direct relationships much higher as compared to indirect ones. We find support for the concern expressed in previous studies that managers may be narrowing the number and diversity of relevant actors to manageable levels, making their extended network largely invisible. We substantiate the gap arising from the managers' network perception insofar as exploiting the potential of network strategies is concerned. This may undermine the capability to see prospective partners, the benefits of establishing diverse relationships, and the opportunities embedded in networks. This study extends earlier research on network pictures by better understanding the views of network surroundings by involved actors.