Toward a Theory of Extended Contact: The Incentives and Opportunities for Bridging Across Network Communities

This study investigates the determinants of bridging ties within networks of interconnected firms. Bridging ties are defined as nonredundant connections between firms located in different network communities. We highlight how firms can enter into these relationships because of the incentives and opportunities for action that are embedded in the existing network structure. Specifically, we propose that the dynamics of proximate network structures, which reflect firms' and their partners' direct connections, affect the formation of bridging ties by shaping the value-creation and value-distribution incentives for bridging. We also argue that the evolving global network structure affects firms' propensity to form bridging ties by shaping the structural opportunities for bridging. We test our theory using the network of partnership ties among firms in the global computer industry from 1991 to 2005. We find support for structural incentives and opportunities as influential precursors of bridging ties

Friends and Foes: The Dynamics of Dual Social Structures

This paper investigates the evolutionary dynamics of a dual social structure encompassing collaboration and conflict among corporate actors. We apply and advance structural balance theory to examine the formation of balanced and unbalanced dyadic and triadic structures, and to explore how these dynamics aggregate to shape the emergence of a global network. Our findings are threefold. First, we find that existing collaborative or conflictual relationships between two companies engender future relationships of the same type, but crowd out relationships of the different type. This results in (a) an increased likelihood of the formation of balanced (uniplex) relationships that combine multiple ties of either collaboration or conflict, and (b) a reduced likelihood of the formation of unbalanced (multiplex) relationships that combine collaboration and conflict between the same two firms. Second, we find that network formation is driven not by a pull toward balanced triads, but rather by a pull away from unbalanced triads. Third, we find that the observed micro-level dynamics of dyads and triads affect the structural segregation of the global network into two separate collaborative and conflictual segments of firms. Our empirical analyses used data on strategic partnerships and patent infringement and antitrust lawsuits in biotechnology and pharmaceuticals from 1996 to 2006

Exploring the Locus of Invention: The Dynamics of Network Communities and Firms’ Invention Productivity

Departing from prior research analyzing the implications of social structure for actors' outcomes by applying either an ego network or a global network perspective, this study examines the implications of network communities for the invention productivity of firms. Network communities represent dense and nonoverlapping structural groups of actors in a social system. A network community lens helps identify new ways to study firms' access to diverse knowledge inputs in a dynamic system of interorganizational relationships. Specifically, we examine how the membership dynamics of a network community affect the invention productivity of member firms by either enabling or constraining access to broad, diverse knowledge inputs. Our findings suggest, first, that a firm reaps the greatest invention benefits in a network community with moderate levels of membership turnover. Second, a firm attains the greatest invention productivity when its own rate of movement across different network communities is moderate. Third, we find that community members located in the core of their network community can benefit more from membership dynamics and prior community affiliations than those on its periphery. In empirical analyses, we use the evolving community structure of the network of interorganizational partnerships in the global computer industry over 1981–2001 to predict firms' patenting rates

Environmental demands and the emergence of social structure: Technological dynamism and interorganizational network forms

This study investigates the origins of variation in the structures of global interorganizational networks across industries. We combine empirical analyses of existing interorganizational networks with an agent-based simulation model of network emergence. Our insights are twofold. First, we find that differences in technological dynamism across industries and the concomitant demands for value creation engender variation in firms ’ collaborative behaviors. Specifically, firms in technologically dynamic industries on average pursue more open networks, which foster access to new and diverse resources that help sustain continuous innovation. By contrast, firms in technologically stable industries on average pursue more closed networks, which foster reliable collaboration and help preserve existing resources. Second, we show that because of the observed cross-industry differences in firms ’ collaborative behaviors, the emergent industry-wide networks take on distinct global forms. Technologically stable industries feature clan networks, characterized by low global connectedness and medium-to-strong community structures. Technologically dynamic industries, by contrast, feature community networks, characterized by high connectedness and medium community structures. Convention networks, which feature high global connectedness and weak community structures, wer

Friends and Foes: The Dynamics of Dual Social Structures

This paper investigates the evolutionary dynamics of a dual social structure encompassing collaboration and conflict among corporate actors. We apply and advance structural balance theory to examine the formation of balanced and unbalanced dyadic and triadic structures, and to explore how these dynamics aggregate to shape the emergence of a global network. Our findings are threefold. First, we find that existing collaborative or conflictual relationships between two companies engender future relationships of the same type, but crowd out relationships of the different type. This results in (a) an increased likelihood of the formation of balanced (uniplex) relationships that combine multiple ties of either collaboration or conflict, and (b) a reduced likelihood of the formation of unbalanced (multiplex) relationships that combine collaboration and conflict between the same two firms. Second, we find that network formation is driven not by a pull toward balanced triads, but rather by a pull away from unbalanced triads. Third, we find that the observed micro-level dynamics of dyads and triads affect the structural segregation of the global network into two separate collaborative and conflictual segments of firms. Our empirical analyses used data on strategic partnerships and patent infringement and antitrust lawsuits in biotechnology and pharmaceuticals from 1996 to 2006

Wingspan: Infosys digital learning platform takes off in the age of disruption

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