Network-independent partner selection and the evolution of innovation networks
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.Download Info
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Paper provided by Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg in its series Working Papers of BETA with number 2009-23.Length:
Date of creation: 2009
Date of revision:
Handle: RePEc:ulp:sbbeta:2009-23
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- 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.
- Baum, Joel & Cowan, Robin & Jonard, Nicolas, 2009. "Network-independent partner selection and the evolution of innovation networks," UNU-MERIT Working Paper Series 022, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology.
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-07-03 (All new papers)
- NEP-CSE-2009-07-03 (Economics of Strategic Management)
- NEP-INO-2009-07-03 (Innovation)
- NEP-KNM-2009-07-03 (Knowledge Management & Knowledge Economy)
- NEP-MIC-2009-07-03 (Microeconomics)
- NEP-NET-2009-07-03 (Network Economics)
- NEP-SOC-2009-07-03 (Social Norms & Social Capital)
References
References listed on IDEASPlease 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.:
- 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.
- Schoenmakers, Wilfred & Duysters, Geert, 2006. "Learning in strategic technology alliances," Open Access publications from Maastricht University urn:nbn:nl:ui:27-13044, Maastricht University.
- 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.
- Verspagen, Bart & Duysters, Geert, 2004. "The small worlds of strategic technology alliances," Open Access publications from Maastricht University urn:nbn:nl:ui:27-13048, Maastricht University.
- Cowan, Robin & Jonard, Nicolas, 2008.
"If the Alliance Fits . . . : Innovation and Network Dynamics,"
UNU-MERIT Working Paper Series
022, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology.
- 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.
- Oxley, Joanne E, 1997. "Appropriability Hazards and Governance in Strategic Alliances: A Transaction Cost Approach," Journal of Law, Economics and Organization, Oxford University Press, vol. 13(2), pages 387-409, October.
- Joel A. C. Baum & Andrew V. Shipilov & Tim J. Rowley, 2003. "Where do small worlds come from?," Industrial and Corporate Change, Oxford University Press, vol. 12(4), pages 697-725, August.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Kalm, Matias, 2012. "The Impact of Networking on Firm Performance - Evidence from Small and Medium-Sized Firms in Emerging Technology Areas," Discussion Papers 1278, The Research Institute of the Finnish Economy.
- Herbert Dawid & Tim Hellmann, 2012. "The Evolution of R&D Networks," Working Papers 467, Bielefeld University, Center for Mathematical Economics.
- Baum, Joel A.C. & Cowan, Robin & Jonard, Nicolas, 2012. "Prescriptions for network strategy: Does evidence of network effects in cross-section support them?," UNU-MERIT Working Paper Series 044, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology.
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