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Networks in transition: how industry events (re)shape interfirm relationships
Author(s) -
Madhavan Ravindranath,
Koka Balaji R.,
Prescott John E.
Publication year - 1998
Publication title -
strategic management journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 11.035
H-Index - 286
eISSN - 1097-0266
pISSN - 0143-2095
DOI - 10.1002/(sici)1097-0266(199805)19:5<439::aid-dia952>3.0.co;2-2
Subject(s) - alliance , industrial organization , network structure , business , longitudinal data , action (physics) , economic geography , strategic alliance , transition (genetics) , computer science , economics , political science , data mining , biochemistry , chemistry , quantum mechanics , machine learning , gene , law , physics
Interfirm relationship networks are strategic resources that can potentially be shaped by managerial action. As a first step towards understanding how managers can shape networks, we develop a framework which explains how industry networks evolve over time and in response to specific events. Our main thesis is that industry events may be either structure‐reinforcing or structure‐loosening, and that their potential structural impact may be predicted in advance. We validate our hypotheses with longitudinal data on the strategic alliance network in the global steel industry. © 1998 John Wiley & Sons, Ltd