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Network positions and propensities to collaborate : an investigation of strategic alliance formation in a high-technology industry

By: STUART, Toby E.
Material type: materialTypeLabelArticlePublisher: Ithaca : Johnson Graduate School of Management, September 1998Administrative Science Quarterly 43, 3, p. 668-698Abstract: The paper develops a network-based mapping of the technological positions of the firms in an industry and applies this model in a longitudinal study of the formation of alliances between organizations. In the analysis, the positions of high-technology firms in their competitive environment are stratified on two dimensions: crowding and prestige. Organizations in crowded positions are those that participate in technological segments in which many firms actively innovative, and prestigious firms are those with a track record of developing seminal inventations. The study's principal empirical findings are that firms in crowded positions and those with high prestige form alliances at the highest rates. The statistical analyses, performed on a sample of semiconductor firms prestige prefict alliance formations at the firm level (which organizations establish the greatest number of alliances) and at the dyad level (which particular pairs of firms choose to collaborate)
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The paper develops a network-based mapping of the technological positions of the firms in an industry and applies this model in a longitudinal study of the formation of alliances between organizations. In the analysis, the positions of high-technology firms in their competitive environment are stratified on two dimensions: crowding and prestige. Organizations in crowded positions are those that participate in technological segments in which many firms actively innovative, and prestigious firms are those with a track record of developing seminal inventations. The study's principal empirical findings are that firms in crowded positions and those with high prestige form alliances at the highest rates. The statistical analyses, performed on a sample of semiconductor firms prestige prefict alliance formations at the firm level (which organizations establish the greatest number of alliances) and at the dyad level (which particular pairs of firms choose to collaborate)

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