Network-Independent Partner Selection and the Evolution of Innovation Networks
AbstractEmpirical research on strategic alliances has focused on the idea that partners are selected on the basis of social capital considerations. In this paper we emphasize instead the role of complementary knowledge stocks and knowledge dynamics, which have received surprisingly limited attention relative to social capital as forces behind the formation and dynamics of innovation networks. To marshal evidence in this regard, we design a simple model of partner selection in which firms ally for the purpose of learning and innovating, and in doing so create an industry network. We abstract completely from network-based structural and strategic motives for partner selection and focus instead on the idea that firms' knowledge bases must "fit" for joint learning and innovation to be possible, and thus for an alliance to be feasible. The striking result is that, despite containing no social capital considerations, this simple model replicates the firm conduct, network structure, and contingent effects of network position on performance observed and discussed in the empirical literature.
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Bibliographic InfoArticle provided by INFORMS in its journal Management Science.
Volume (Year): 56 (2010)
Issue (Month): 11 (November)
innovation; networks; strategic alliances; knowledge;
Other versions of this item:
- Baum, Joel & Cowan, Robin & Jonard, Nicolas, 2009. "Network-independent partner selection and the evolution of innovation networks," MERIT Working Papers 022, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
- Joel BAUM & Robin COWAN & Nicolas JONARD, 2009. "Network-independent partner selection and the evolution of innovation networks," Working Papers of BETA 2009-23, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
- D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
- L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
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