Social capital, strategic relatedness and the formation of intraorganizational linkages

Social capital, strategic relatedness and the formation of intraorganizational linkages This paper investigates the evolutionary dynamics of network formation by analyzing how organizational units create new interunit linkages for resource exchange. Using sociometric techniques and event history analysis, this study predicts the rate at which new interunit linkages are created between a newly formed unit and all the existing units in a large multinational organization. Two important constructs: social capital, derived from the literature on social structure and network formation, and strategic relatedness, derived from research on diversification and the resource‐based view of the firm, are used to explain the rate of new linkage creation. Results show that the interaction between social capital and strategic relatedness significantly affects the formation of intraorganizational linkages. Copyright © 2000 John Wiley & Sons, Ltd. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Strategic Management Journal Wiley

Social capital, strategic relatedness and the formation of intraorganizational linkages

Strategic Management Journal, Volume 21 (9) – Sep 1, 2000

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Publisher
Wiley
Copyright
Copyright © 2000 John Wiley & Sons, Ltd.
ISSN
0143-2095
eISSN
1097-0266
DOI
10.1002/1097-0266(200009)21:9<925::AID-SMJ129>3.0.CO;2-I
Publisher site
See Article on Publisher Site

Abstract

This paper investigates the evolutionary dynamics of network formation by analyzing how organizational units create new interunit linkages for resource exchange. Using sociometric techniques and event history analysis, this study predicts the rate at which new interunit linkages are created between a newly formed unit and all the existing units in a large multinational organization. Two important constructs: social capital, derived from the literature on social structure and network formation, and strategic relatedness, derived from research on diversification and the resource‐based view of the firm, are used to explain the rate of new linkage creation. Results show that the interaction between social capital and strategic relatedness significantly affects the formation of intraorganizational linkages. Copyright © 2000 John Wiley & Sons, Ltd.

Journal

Strategic Management JournalWiley

Published: Sep 1, 2000

References

  • Trustworthiness as a source of competitive advantage
    Barney, Barney; Hansen, Hansen
  • A theory of global strategic alliances: the case of the global auto industry
    Burgers, Burgers; Hill, Hill; Kim, Kim
  • Exchange and power in networks of interorganizational relations
    Cook, Cook
  • The independent and joint effects of the skill and physical bases of relatedness in diversification
    Farjoun, Farjoun
  • Diversification strategy, profit performance, and the entropy measure
    Palepu, Palepu
  • The cornerstones of competitive advantage: a resource based view
    Peteraf, Peteraf
  • Network forms of organization
    Podolny, Podolny
  • Social capital: its origins and applications in modern sociology
    Portes, Portes
  • The dominant logic: a new linkage between diversity and performance
    Prahalad, Prahalad; Bettis, Bettis
  • Manufacturing‐based relatedness, synergy, and coordination
    St John, St John; Harrison, Harrison

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