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Competing in groups


  • Tim J. Rowley

    (Rotman School of Management, University of Toronto, Canada)

  • Joel A. C. Baum

    (Rotman School of Management, University of Toronto, Canada)

  • Andrew V. Shipilov

    (Rotman School of Management, University of Toronto, Canada)

  • Henrich R. Greve

    (Norwegian School of Management, Norway)

  • Hayagreeva Rao

    (Kellogg Graduate School of Business, Northwestern University, USA)


In this study, we examine how the characteristics of clique structures affect the performance of firms embedded within the cliques. Although it is generally accepted in organization theory and strategic management that firms are embedded within ego and overarching industry networks that each affect their behavior and performance, there is little evidence on whether cliques are stable features of industry networks or affect firm behavior or performance. We theorize that the value of a clique to its members depends on (1) the network centrality of the clique and (2) the internal structure and organization (heterogeneity and inequality) of the clique. Our analysis of the Canadian investment banking industry from 1952 to 1990 provides empirical evidence of stable cliques, and indicates that while a clique's internal structure and organization materially affect firm-level benefits of clique membership, its positional embeddedness within the industry network does not. Copyright © 2004 John Wiley & Sons, Ltd.

Suggested Citation

  • Tim J. Rowley & Joel A. C. Baum & Andrew V. Shipilov & Henrich R. Greve & Hayagreeva Rao, 2004. "Competing in groups," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 25(6-7), pages 453-471.
  • Handle: RePEc:wly:mgtdec:v:25:y:2004:i:6-7:p:453-471
    DOI: 10.1002/mde.1201

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    References listed on IDEAS

    1. Lee, Lung-Fei, 1983. "Generalized Econometric Models with Selectivity," Econometrica, Econometric Society, vol. 51(2), pages 507-512, March.
    2. Peter Kennedy, 2003. "A Guide to Econometrics, 5th Edition," MIT Press Books, The MIT Press, edition 5, volume 1, number 026261183x, January.
    3. Robert Jacobson, 1990. "Unobservable Effects and Business Performance," Marketing Science, INFORMS, vol. 9(1), pages 74-85.
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    Cited by:

    1. Duysters, Geert & Lemmens, Charmianne & Letterie, Wilko & Vanhaverbeke, Wim, 2008. "The Innovative Performance of Alliance Block Members: Evidence from the Microelectronics Industry," MERIT Working Papers 064, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    2. Gilsing, Victor & Vanhaverbeke, Wim & Pieters, Michiel, 2014. "Mind the gap," Technological Forecasting and Social Change, Elsevier, vol. 81(C), pages 351-362.
    3. Pallotti, Francesca & Lomi, Alessandro, 2011. "Network influence and organizational performance: The effects of tie strength and structural equivalence," European Management Journal, Elsevier, vol. 29(5), pages 389-403.
    4. 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.
    5. Pieters, Michiel & Gilsing, Victor & Vanhaverbeke, Wim, 2009. "Mind the gap: Balancing alliance network and technology portfolios during periods of technological uncertainty," MPRA Paper 26491, University Library of Munich, Germany, revised 2010.
    6. Casanueva, Cristóbal & Castro, Ignacio & Galán, José L., 2013. "Informational networks and innovation in mature industrial clusters," Journal of Business Research, Elsevier, vol. 66(5), pages 603-613.

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