IDEAS home Printed from https://ideas.repec.org/p/luc/wpaper/08-14.html
   My bibliography  Save this paper

Networks-independent partner selection and the evolution of innovation networks

Author

Listed:
  • Michel Beine
  • Paul De Grauwe
  • Marianna Grimaldi

    (CREA, University of Luxembourg)

Abstract

Empirical research on strategic alliances has focused on the idea that alliance partners are selected on the basis of social capital considerations. In this paper we emphasize instead the role of complementary knowledge stocks (broadly defined) in partner selection, arguing not only that knowledge complementarity should not be overlooked, but that it may be the true causal force behind alliance formation. To marshal evidence on this point, 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” in order for joint leaning and innovation to be possible, and thus for an alliance to be feasible. The striking result is that while 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.

Suggested Citation

  • Michel Beine & Paul De Grauwe & Marianna Grimaldi, 2008. "Networks-independent partner selection and the evolution of innovation networks," DEM Discussion Paper Series 08-14, Department of Economics at the University of Luxembourg.
    • Handle: RePEc:luc:wpaper:08-14
    as

    Download full text from publisher

    File URL: http://wwwfr.uni.lu/content/download/16906/214267/file/2008-14_Networks-independent%20partner%20selection%20and%20the%20evolution%20of%20innovvation%20networks.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Tim Rowley & Dean Behrens & David Krackhardt, 2000. "Redundant governance structures: an analysis of structural and relational embeddedness in the steel and semiconductor industries," Strategic Management Journal, Wiley Blackwell, vol. 21(3), pages 369-386, March.
    2. Tarun Khanna, 1998. "The Scope of Alliances," Organization Science, INFORMS, vol. 9(3), pages 340-355, June.
    3. Gordon Walker & Bruce Kogut & Weijian Shan, 1997. "Social Capital, Structural Holes and the Formation of an Industry Network," Organization Science, INFORMS, vol. 8(2), pages 109-125, April.
    4. Robin Cowan & Nicolas Jonard, 2008. "If the Alliance Fits . . . : Innovation and Network Dynamics," Working Papers of BETA 2008-06, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    5. Oxley, Joanne E, 1997. "Appropriability Hazards and Governance in Strategic Alliances: A Transaction Cost Approach," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 13(2), pages 387-409, October.
    6. Mowery, David C. & Oxley, Joanne E. & Silverman, Brian S., 1998. "Technological overlap and interfirm cooperation: implications for the resource-based view of the firm," Research Policy, Elsevier, vol. 27(5), pages 507-523, September.
    7. Gautam Ahuja & Riitta Katila, 2001. "Technological acquisitions and the innovation performance of acquiring firms: a longitudinal study," Strategic Management Journal, Wiley Blackwell, vol. 22(3), pages 197-220, March.
    8. Holme, Petter & Min Park, Sung & Kim, Beom Jun & Edling, Christofer R., 2007. "Korean university life in a network perspective: Dynamics of a large affiliation network," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 373(C), pages 821-830.
    9. Nitin Nohria & Carlos Garcia‐Pont, 1991. "Global strategic linkages and industry structure," Strategic Management Journal, Wiley Blackwell, vol. 12(S1), pages 105-124, June.
    10. Seungwha (Andy) Chung & Harbir Singh & Kyungmook Lee, 2000. "Complementarity, status similarity and social capital as drivers of alliance formation," Strategic Management Journal, Wiley Blackwell, vol. 21(1), pages 1-22, January.
    11. Joel A. C. Baum & Andrew V. Shipilov & Tim J. Rowley, 2003. "Where do small worlds come from?," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 12(4), pages 697-725, August.
    12. Ronald S. Burt & Marc Knez, 1995. "Kinds of Third-Party Effects on Trust," Rationality and Society, , vol. 7(3), pages 255-292, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Joel A. C. Baum & Robin Cowan & Nicolas Jonard, 2010. "Network-Independent Partner Selection and the Evolution of Innovation Networks," Management Science, INFORMS, vol. 56(11), pages 2094-2110, November.
    2. Henrich R. Greve & Hitoshi Mitsuhashi & Joel A. C. Baum, 2013. "Greener Pastures: Outside Options and Strategic Alliance Withdrawal," Organization Science, INFORMS, vol. 24(1), pages 79-98, February.
    3. Duysters, Geert & Lemmens, Charmianne & Letterie, Wilko & Vanhaverbeke, Wim, 2008. "The Innovative Performance of Alliance Block Members: Evidence from the Microelectronics Industry," MERIT Working Papers 2008-064, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    4. Vanhaverbeke, W.P.M. & Beerkens, B.E. & Duysters, G.M., 2003. "Explorative and exploitative learning strategies in technology-based alliance networks," Working Papers 03.22, Eindhoven Center for Innovation Studies.
    5. Gay, Brigitte, 2008. "Firm dynamic governance of global innovation by means of flexible networks of connections," MPRA Paper 12525, University Library of Munich, Germany.
    6. Park, Gunno & Kim, Marco JinHwan & Kang, Jina, 2015. "Competitive embeddedness: The impact of competitive relations among a firm's current alliance partners on its new alliance formations," International Business Review, Elsevier, vol. 24(2), pages 196-208.
    7. Golonka, Monika, 2015. "Proactive cooperation with strangers: Enhancing complexity of the ICT firms' alliance portfolio and their innovativeness," European Management Journal, Elsevier, vol. 33(3), pages 168-178.
    8. Jacob, Jojo & Duysters, Geert, 2017. "Alliance network configurations and the co-evolution of firms' technology profiles: An analysis of the biopharmaceutical industry," Technological Forecasting and Social Change, Elsevier, vol. 120(C), pages 90-102.
    9. Wim Vanhaverbeke & Victor Gilsing & Bonnie Beerkens & Geert Duysters, 2009. "The Role of Alliance Network Redundancy in the Creation of Core and Non‐core Technologies," Journal of Management Studies, Wiley Blackwell, vol. 46(2), pages 215-244, March.
    10. Belderbos, Rene & Gilsing, Victor & Lokshin, Boris, 2009. "Persistence of and interrelation between horizontal and vertical technology alliances," MERIT Working Papers 2009-065, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    11. Joel A. C. Baum & Bill McEvily & Tim J. Rowley, 2012. "Better with Age? Tie Longevity and the Performance Implications of Bridging and Closure," Organization Science, INFORMS, vol. 23(2), pages 529-546, April.
    12. Colombo, Massimo G. & Grilli, Luca & Piva, Evila, 2006. "In search of complementary assets: The determinants of alliance formation of high-tech start-ups," Research Policy, Elsevier, vol. 35(8), pages 1166-1199, October.
    13. Tom Broekel & Matthias Brachert, 2015. "The structure and evolution of inter-sectoral technological complementarity in R&D in Germany from 1990 to 2011," Journal of Evolutionary Economics, Springer, vol. 25(4), pages 755-785, September.
    14. Russo, Angeloantonio & Vurro, Clodia & Nag, Rajiv, 2019. "To have or to be? The interplay between knowledge structure and market identity in knowledge-based alliance formation," Research Policy, Elsevier, vol. 48(3), pages 571-583.
    15. Nooteboom, Bart & Van Haverbeke, Wim & Duysters, Geert & Gilsing, Victor & van den Oord, Ad, 2007. "Optimal cognitive distance and absorptive capacity," Research Policy, Elsevier, vol. 36(7), pages 1016-1034, September.
    16. Robin Cowan & Nicolas Jonard & Jean-Benoit Zimmermann, 2007. "Bilateral Collaboration and the Emergence of Innovation Networks," Management Science, INFORMS, vol. 53(7), pages 1051-1067, July.
    17. Wonsang Ryu & Jeffrey J. Reuer & Thomas H. Brush, 2020. "The effects of multimarket contact on partner selection for technology cooperation," Strategic Management Journal, Wiley Blackwell, vol. 41(2), pages 267-289, February.
    18. Oh, Yoojin & Yoo, Nina, 2022. "Effective cooperation modes based on cultural and market similarities in interfirm relationships," Journal of International Management, Elsevier, vol. 28(1).
    19. Lori Rosenkopf & Giovanna Padula, 2008. "Investigating the Microstructure of Network Evolution: Alliance Formation in the Mobile Communications Industry," Organization Science, INFORMS, vol. 19(5), pages 669-687, October.
    20. Andrew V. Shipilov, 2009. "Firm Scope Experience, Historic Multimarket Contact with Partners, Centrality, and the Relationship Between Structural Holes and Performance," Organization Science, INFORMS, vol. 20(1), pages 85-106, February.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:luc:wpaper:08-14. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marina Legrand (email available below). General contact details of provider: https://edirc.repec.org/data/crcrplu.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.