Publish more research papers or advise dissertations?
Your question is largely a false dichotomy. For instance, there's no reason a paper written by one of your students can't involve collaborators at your institution or from other institutions as well. 

So long as your students are publishing, and you're establishing a network, I wouldn't worry about trying to prioritize one over the other, unless your institution's promotion and tenure regulations have something specific to say in the matter.