Session 133

The Dynamics of Interorganizational Networks and Their Performance Implications

Track B

Date: Tuesday, October 13, 2009

 

Time: 14:30 – 15:45

Common Ground

Room: Meeting Room 10


Facilitator:
Ravi Madhavan, University of Pittsburgh

Title: The Impact of Innovation Brokers on Interfirm Network Evolution

Authors

  • Carl Joachim Kock, IE Business School
  • Remzi Gozubuyuk, Sabanci University

Abstract: In recent years, the development of the idea of “Open Innovation”(Chesbrough, 2004; 2006) lead to the emergence of “Innovation brokers” who connect those seeking for solutions with a rather large number of potential knowledge suppliers. In this paper we analyze the implication that the existence of such Innovation brokers has on other organizational interchanges firms may engage in. Specifically, we ask how the inter-organizational network of a particular firm evolves over time if they use an Innovation broker or not. Apart from contributing to both, network theory by shedding light on the evolution of network ties, and the innovation literature by adding to our understanding of how knowledge flows develop over time, our work should also have rather practical implications for Innovation brokers themselves and for their clients.

Title: Coping with Uncertainty in Knowledge Search Through Multipartner Alliances: Race to an Industry Standard-Setting

Authors

  • Bongsun Kim, Korea University Business School
  • Eonsoo Kim, Korea University

Abstract: Under high uncertainty such as in a race for an industry standard-setting, how to identify and solve emerging technological problems is a critical question. In this circumstance, firms’ strategic choices on search speed and boundary in knowledge domain may be critical success factors. Recently, multipartner alliance has emerged as one of strategic choices to cope with uncertainty by expanding search boundary. Yet, few studies have addressed the impact of search speed and its interaction with search boundary on innovation performance. This study tests such relationships in an industry standard-setting situation. We argue that preemptive, fast search is more desirable in a highly uncertain environment and external involvement can mitigate the potential risks of fast search, amplifying the positive relationship between search speed and innovation performance.

Title: The Effect of Social Capital on Financial Capital

Authors

  • Josep Antoni Tribó, Carlos III University of Madrid
  • Jordi Surroca, University of Groningen

Abstract: We study the effect of social capital on financial capital. Specifically, we study how similarity (matching) of borrowers’ and lenders’ cohorts along their corporate social responsibility dimension affects the cost of debt financing. The main finding is that borrowers’ ethical posture alone is not enough for obtaining cheapest rates. Favorable loan conditions are obtained when both lenders and borrowers belong to similar cohorts attributing high value for social responsibility aspects. Employing an international database composed of 4,554 syndicated loans involving 175 corporations in 15 different countries for the period 2003-2006 we document a large and significant reduction in lending rates when both borrowers and lenders belong to similar cohort along the social responsibility dimension. These results withstand a battery of robustness tests.

Title: Strategic Airline Alliances: Dynamics in Network Structure, Management of Uncertainty and Effects on Operational Performance

Authors

  • Paolo Boccardelli, LUISS Guido Carli University
  • Leonardo Corbo, Catholic University of Portugal
  • Luca Pirolo, LUISS Guido Carli University

Abstract: The growth of uncertainty and the emergence of global turmoil may affect the capability to deliver value and to achieve a high level of operational performance. Accordingly, the importance of alliances and networks has increased and many firms today are embedded in a dense network of relationships in order to face competitive challenges in dynamic contexts. In order to investigate the role of networks on performance and uncertainty, we analysed airline alliances between 1995 and 2007 and their evolution on the degree of network closure over time. Our results show that operational performance is affected by the network position and they display interesting arguments supporting the role of networks in facing uncertain competitive landscapes. Finally, considerations about the evolutionary perspective of networks can be traced.

Title: The Effects of a Firm’s Alliance with Its Rival’s Partner on Stock Market Return

Authors

  • Kwangho Kim, City University of Hong Kong

Abstract: Firms’ alliance with their rival’s partner is not uncommon in the current hyper- competitive environments. This alliance may offer significant competitive implications both for a focal firm and its rival. In this study, I explore the nature and factors that influence the effects of a focal firm’s alliance with its rival's partner on its performance. Specifically, I predict that repeated partnership and market overlap between a rival and its partner significantly affect the abnormal stock market return of a focal firm’s alliance with its rival’s partner.

All Sessions in Track B...

Mon: 12:45 – 14:00
Session 123: The Configuration of Alliance Portfolios: Antecedents and Consequences
Mon: 15:45 – 17:00
Session 131: Managing External Relationships: Perception, Judgement and Action
Session 132: Uncertainty and the Leveraging of Relational Mechanisms in Alliances
Mon: 17:15 – 18:30
Session 126: Getting It Right: Buyer-Supplier Relationships
Tue: 10:00 – 11:15
Session 124: License to Deal: Technology Licensing, Innovation, and Corporate Investment
Tue: 11:30 – 12:45
Session 127: Law and Order: Alliance Governance Decisions
Session 134: Organizational Design and Networking Strategies under Uncertainty
Tue: 14:30 – 15:45
Session 128: Is He The One? Partner Selection and Tie Formation
Session 133: The Dynamics of Interorganizational Networks and Their Performance Implications
Wed: 10:00 – 11:15
Session 129: Putting Things in Context: Competition and Network Dynamics
Wed: 11:30 – 12:45
Session 130: Alliances, Knowledge Transfer, and Performance
Session 135: The Good, the Bad and the Not so Bad: Enhancing Performance by Discerning External Relationships


Strategic Management Society

Washington DC