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Social capital, strategic relatedness and the formation of intraorganizational linkages
Author(s) -
Tsai Wenpin
Publication year - 2000
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 - 10.1002/1097-0266(200009)21:9<925::aid-smj129>3.0.co;2-i
Subject(s) - multinational corporation , diversification (marketing strategy) , social capital , business , resource (disambiguation) , industrial organization , competitive advantage , linkage (software) , economic geography , marketing , knowledge management , economics , sociology , computer science , social science , computer network , biochemistry , chemistry , finance , gene
This paper investigates the evolutionary dynamics of network formation by analyzing how organizational units create new interunit linkages for resource exchange. Using sociometric techniques and event history analysis, this study predicts the rate at which new interunit linkages are created between a newly formed unit and all the existing units in a large multinational organization. Two important constructs: social capital , derived from the literature on social structure and network formation, and strategic relatedness , derived from research on diversification and the resource‐based view of the firm, are used to explain the rate of new linkage creation. Results show that the interaction between social capital and strategic relatedness significantly affects the formation of intraorganizational linkages. Copyright © 2000 John Wiley & Sons, Ltd.