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The dynamics of interfirm networks along the industry life cycle: The case of the global video game industry, 1987--2007

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  • Pierre-Alexandre Balland
  • Mathijs De Vaan
  • Ron Boschma

Abstract

In this paper, we study the formation of network ties between firms along the life cycle of a creative industry. We focus on three drivers of network formation: i) network endogeneity which stresses a path-dependent change originating from previous network structures, ii) five forms of proximity (e.g. geographical proximity) which ascribe tie formation to the similarity of actors' attributes; and (iii) individual characteristics which refer to the heterogeneity in actors capabilities to exploit external knowledge. The paper employs a stochastic actor-oriented model to estimate the - changing - effects of these drivers on inter-firm network formation in the global video game industry from 1987 to 2007. Our findings indicate that the effects of the drivers of network formation change with the degree of maturity of the industry. To an increasing extent, video game firms tend to partner over shorter distances and with more cognitively similar firms as the industry evolves.

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Bibliographic Info

Article provided by Oxford University Press in its journal Journal Of Economic Geography.

Volume (Year): 13 (2013)
Issue (Month): 5 (September)
Pages: 741-765

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Handle: RePEc:oup:jecgeo:v:13:y:2013:i:5:p:741-765

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Cited by:
  1. Cappelli, Riccardo & Montobbio, Fabio, 2013. "European Integration and Knowledge Flows across European Regions," Department of Economics and Statistics Cognetti de Martiis. Working Papers, University of Turin 201322, University of Turin.
  2. T. Buchmann & D. Hain & Muhamed Kudic & M. Müller, 2014. "Exploring the Evolution of Innovation Networks in Science-driven and Scale-intensive Industries: New Evidence from a Stochastic Actor-based Approach," IWH Discussion Papers, Halle Institute for Economic Research 1, Halle Institute for Economic Research.
  3. Mathijs De Vaan & Ron Boschma & Koen Frenken, 2012. "Clustering and firm performance in project-based industries: The case of the global video game industry, 1972-2007," Papers in Evolutionary Economic Geography (PEEG) 1221, Utrecht University, Section of Economic Geography, revised Nov 2012.
  4. Pierre-Alexandre Balland & Ron Boschma & Koen Frenken, 2013. "Proximity and Innovation: From Statics to Dynamics," Papers in Evolutionary Economic Geography (PEEG) 1314, Utrecht University, Section of Economic Geography, revised Aug 2013.
  5. Ron Boschma & Pierre-Alexandre Balland & Dieter Kogler, 2011. "A relational approach to knowledge spillovers in biotech. Network structures as drivers of inter-organizational citation patterns," Papers in Evolutionary Economic Geography (PEEG) 1120, Utrecht University, Section of Economic Geography, revised Dec 2011.

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