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Networks, Irreversibility and Knowledge Creation

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  • Patrick Llerena
  • Muge Ozman

Abstract

The aim of this paper is to highlight the effect of irreversibility in partner choice in strategic alliances. In an environment where firms are binded by contractual constraints regarding the duration of partnerships, how does the complexity of products influence the overall knowledge in the industry? Through an agent based simulation model, we compare the knowledge generation in irreversible and reversible systems in two regimes as tacit and codified. The emerging network structures are also analysed. The results reveal that, in tacit regimes irreversible systems generate more knowledge only when product comlexity is at an intermediate level.

Suggested Citation

  • Patrick Llerena & Muge Ozman, 2010. "Networks, Irreversibility and Knowledge Creation," Working Papers of BETA 2010-10, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    • Handle: RePEc:ulp:sbbeta:2010-10
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    File URL: http://beta.u-strasbg.fr/WP/2010/2010-10.pdf
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    Cited by:

    1. Giuseppe Attanasi & Michela Chessa & Sara Gil-Gallen & Patrick Llerena, 2021. "A survey on experimental elicitation of creativity in economics," Revue d'économie industrielle, De Boeck Université, vol. 0(2), pages 273-324.
    2. Yugank Goyal & Klaus Heine, 2021. "Why do informal markets remain informal: the role of tacit knowledge in an Indian footwear cluster," Journal of Evolutionary Economics, Springer, vol. 31(2), pages 639-659, April.
    3. Meixing Dai, 2012. "External Constraint and Financial Crises with Balance Sheet Effects," International Economic Journal, Taylor & Francis Journals, vol. 26(4), pages 567-585, March.
    4. Tur, Elena M. & Azagra-Caro, Joaquín M., 2018. "The coevolution of endogenous knowledge networks and knowledge creation," Journal of Economic Behavior & Organization, Elsevier, vol. 145(C), pages 424-434.

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