Research Summary: We examine how competitive tensions and cooperative motivations together shape firms' interactions and group-level outcomes during technology coordination activities in multifirm settings. Analyzing the communication and voting behavior of 115 firms across three subcommittees of a computing industry technology standards-setting organization over 14 years, we find that existing product-market positions influence how firms with highly overlapped technological resources differ in their interactions: when their product-markets are more competitive, they exhibit greater support for the emerging standard, as evidenced by positivity and certainty of interaction tone; but when they possess a broader array of complementary products, support is tempered. At the subcommittee level, after accounting for aggregate competitive tensions in prior interactions, heterogeneity in both firms' relational influence as well as their prior multiparty experience improve consensus. Managerial Summary: In innovation ecosystems, competing firms are often obligated to collaborate with each other in large multifirm forums to develop the technical standards that enable interoperability between their products. We show how the networks of technical and commercial relationships between firms shape such standards activities in two steps. First, firms who share many common technology interests with others communicate their support for new standards more vigorously when they participate in more competitive product-markets, but less vigorously when they possess more complementary products. Second, communities find broader support for standards when there is greater imbalance across both firms'
W hereas network ideas and approaches have become prominent in both the managerial and sociological literatures, we contend that the increasing emphasis on network structures and their evolution has distracted us from the important issue of whether and when networks actually work in the ways that our theories assume. In particular, we explore the well-established assumption that knowledge flows over network paths, with special attention to the role of friction when the supposed information transfer spans multiple dyads. Our analysis shows that friction is omnipresent and has implications at both the system and subsystem levels. More specifically, we present a rich set of research opportunities that addresses implications of friction for the variation of knowledge flows for different network structures and also for the distribution of knowledge among the actors within a particular network.
Organizations create high-impact inventions when they combine disparate strands of technology in their corporate research and development. We theorize that when undertaking complex inventive search characterized by high breadth, i.e., drawing on multiple diverse technology components, an organization’s propensity toward high-impact inventions depends on its stock of experience with recombining such components and on the focus of its inventive search. Building on learning transfer theory, we argue that the complexity and causal ambiguity of higher-breadth projects is such that experience with similar inventive search will be a poorer guide, comparatively reducing their inventive impact; however, this negative effect can be attenuated by the degree of focus of an organization’s contemporaneous inventive search. Using a longitudinal data set of patents from the photographic imaging industry, we find support for our predictions.
Research summary: Endogenous characteristics of alliance network structure have repeatedly been shown to predict future alliance ties in the strategic management literature. Specifically, the concepts and measures of relational, structural, and positional embeddedness (per Gulati and Gargiulo, 1999), as well as interdependence, are foundational for many studies. We explore these determinants of alliance formation by replicating the baseline analyses of Ahuja, Polidoro, and Mitchell's, 2009 SMJ article. We examine the impact of empirical choices with respect to time period, underlying data generating model, and industry by isolating each effect in turn. We demonstrate that while geographic similarity and product-market similarity each robustly predict the interdependence effect, the effects of both technological similarity as well as the embeddedness predictors are sensitive to context and/or method.Managerial summary: Our examination of alliance formation in the chemical and semiconductor industries during the 1990s demonstrates how new alliances may be predicted by both the technical, geographic, and product-market fit of potential partners as well as characteristics of each partner's previous network participation. Comparing our results to an earlier study, we find that geographic and product-market similarity predict alliance formation across both industries and time frames while prior ties between partners predict alliance formation only when these industries are less mature. Other network participation indicators generate nuanced effects, which underscore the importance of quasi-replications of alliance formation across industries and time periods in building evidence-based management theories.
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