Network Formation and Strategic Firm Behaviour to Explore and Exploit
AbstractThe aim of this paper is to investigate the effect of technological opportunities and knowledge tacitness on inter-firm network formation, under two different industry regimes. In the first regime environment is stable and the aim of firms is to exploit knowledge. In this case, they attribute more value to repeated interactions with geographically close firms. In the second regime, there is environmental turbulence, which increases the value of access to novel information from distant partners for exploration. The question addressed is, under these regimes how do technological opportunities and knowledge tacitness influence structure of networks? The main contribution of the paper different from previous work is that it explicitly models the effect of history between two firms on networks that form. A simulation model is carried out where firms select partners and learn from them, which further shapes their selection process. The results reveal that in both regimes richer technological opportunities and higher tacitness generates local and global star firms depending on the parameter range.
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Bibliographic InfoPaper provided by Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg in its series Working Papers of BETA with number 2007-07.
Date of creation: 2007
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Other versions of this item:
- MÃ¼ge �zman, 2007. "Network Formation and Strategic Firm Behaviour to Explore and Exploit," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 11(1), pages 7.
- NEP-ALL-2007-02-24 (All new papers)
- NEP-CBE-2007-02-24 (Cognitive & Behavioural Economics)
- NEP-CSE-2007-02-24 (Economics of Strategic Management)
- NEP-INO-2007-02-24 (Innovation)
- NEP-KNM-2007-02-24 (Knowledge Management & Knowledge Economy)
- NEP-NET-2007-02-24 (Network Economics)
- NEP-SOC-2007-02-24 (Social Norms & Social Capital)
- NEP-TID-2007-02-24 (Technology & Industrial Dynamics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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