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| Author: | Ahuja, G. Polidoro, F. Mitchell, W. |
| Title: | Structural homophily or social asymmetry? The formation of alliances by poorly embedded firms |
| Journal: | Strategic Management Journal
2009 : SEP, VOL. 30:9, p. 941-958 |
| Index terms: | interorganizational relations networks strategic planning management chemical industry joint business ventures companies international alliances |
| Freeterms: | partnerships social structure |
| Language: | eng |
| Abstract: | Poorly embedded (hereafter as: p-emd.) firms in a network structure are less likely than richly embedded ones to form alliances due to their lack of informational and reputational benefits. This study examines the types of ties that p-emd. firms can form to cross the constraints imposed by their structural positions, in turn helping to explain how firms' actions can transform existing network structures. It is argued that p-emd. firms are more likely to take part in ties characterized by social asymmetry than in ties characterized by structural homophily. Analyzed are the terms of trade that socially asymmetric partners negotiate for alliance governance. It is discussed how network dynamics is influenced by such alliances. Longitudinal data on the alliance activities of 97 global chemical firms from 1979 to 1991 is used for testing the arguments. |
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