Abstract
Prior research on interfirm networks suggests that while brokerage is beneficial in terms of access to more novel information, broker firms find it more challenging to ensure the quality of the information gained through its ties. Given this trade-off, scholarship on the brokerage-performance linkage has predominantly tried to identify key contingencies that influence the nature of this relationship. In accordance with this tradition, through this study, I add to the interfirm brokerage literature by investigating an important but hitherto unanswered question of how a bank’s position in the interbank colocation network shapes its loan performance. In addition, I also uncover two key boundary conditions of this main relationship. I test my predictions using a panel dataset of Indian banks.