This document discusses networks and innovation. It provides three perspectives on networks: as an analytical tool to examine relationships; as explanatory concepts where relationships influence behaviors; and as organizational forms. Networks are defined as sets of nodes linked by relationships. The network perspective is that economic actions are embedded in networks that provide opportunities and constraints. Networks can pool resources and develop new ideas, providing access to diverse information and capabilities to drive innovation. Empirical evidence on how network structure impacts innovation is mixed, finding benefits from both brokerage and closure positions in networks. The document then focuses on strategic alliance networks and how network position can generate innovation, with examples from the automotive industry.
UNDERSTANDING THE THEORIES AND TYPES OF ENTERPRISE NETWORKSNGANG PEREZ
To begin, Casson and Giusta (2007) said a network refers to a set of elements or members that are connected to each other. Seibert, Kraimer, and Liden (2001) defined a network as “the pattern of ties linking a defined set of persons or social actors”. Before I go any further, to you, what do you think a network is all about? What opinion do you hold in your mind about this concept? From the two definitions I just presented, you will realize that connections or ties are the fundamental features of all networks. The connections are the results of relationships between the members. In addition, all members of a network are either directly or indirectly linked to each other (Casson & Giusta 2007). Thus, networks consist of a set of elements or members that are connected to each other as a result of the relationships of the members. Therefore, your class is made up of a network of individual members called students. Also, your church is made up of a network of Indi dual people called brethren as well as your family is made of a network of individual persons called family members. Almost in every situation in normal life and business, a network is bound to exist. This makes me tempted to say Man cannot live without a network, so also do businesses need networks to survive. I find it challenging when I hear people say, “I don’t need another man in this life” or “I can succeed without the help of any man” and there are many examples of such comment’s rights? I’m sure you too often hear people make statements. It's funny, and yes truly funny because such statements are made may be from ignorance or usually from nonsense pride. Hear me and hear me well! Even to go to heaven, you need God’s network if not you lie yourself. One famous Cameroonian politician once said, “you scratch my back, I scratch your back”. Therefore, the importance of networks cannot be overemphasized in business.
Carol Bartz transformed Autodesk from a small single product company into one of the largest software providers in the world during her 14 year tenure as CEO. As Executive Chairman, she continues to help Autodesk expand into emerging markets. The document provides details on Autodesk's financial performance, leadership changes, and stock option review that resulted in financial restatements.
Using these slides, I presented my paper titled "Institutional works in scholarly networks: A rapprochement between agency and structure" at the 2014 Academy of Management annual meeting. In the paper, I attempt to find an answer to the question: how noble ideas emerge in academia?
Ruth Stevens and Bernice Grossman analyzed the relative quality of prospecting databases available to B-to-B marketers. Based on research in 2010 on compiled data, with 5 vendors participating (Demandbase, D&B, Infogroup, Jigsaw and Netprospex), and in 2011 on response data, with 3 vendors (Infogroup, Mardev DM2 and Worldata), we also offer tips on how to pre-test vendor options and make sensible vendor selection decisions.
The Computer Sciences Corporation 1999 Annual Report provides an overview of the company's performance in fiscal year 1999. Some key points:
- Revenues totaled $7.7 billion, a 16% increase over 1998, driven by strong demand for consulting and systems integration services.
- Net income increased 31% to $341 million.
- Over $5 billion in new contracts were announced, including a potential $8 billion contract with the IRS.
- The company had over 50,000 employees serving customers in industry and government around the world.
Social network analysis (SNA) - Big data and social data - Telecommunications...Wael Elrifai
Social Network Analysis: Practical Uses and Implementation is a presentation that discusses social network analysis and its practical applications. It introduces key concepts such as social networks, social network analysis, roles in social networks, and graph theory. It also covers metrics and implementations of social network analysis, including calculating metrics from social networks and recommended approaches involving data preparation, metric calculation, model creation and scoring, and measurement. The presentation provides an overview of how social network analysis can be a useful tool for understanding relationships and influence.
USING STRUCTURAL HOLES METRICS FROM COMMUNICATION NETWORKS TO PREDICT CHANGE ...Igor Wiese
This document examines using structural hole metrics (SHM) from communication networks to predict change dependencies between software artifacts. It finds that SHM can predict change dependencies with an area under the curve over 0.7. Constraint and hierarchy SHM were most important for one project, while commits and updates were most important when including process metrics. The study provides initial evidence that SHM obtained from communication networks can predict change dependencies as suggested by Conway's Law. Future work could explore additional projects, metrics, and comparisons to other software aspects.
UNDERSTANDING THE THEORIES AND TYPES OF ENTERPRISE NETWORKSNGANG PEREZ
To begin, Casson and Giusta (2007) said a network refers to a set of elements or members that are connected to each other. Seibert, Kraimer, and Liden (2001) defined a network as “the pattern of ties linking a defined set of persons or social actors”. Before I go any further, to you, what do you think a network is all about? What opinion do you hold in your mind about this concept? From the two definitions I just presented, you will realize that connections or ties are the fundamental features of all networks. The connections are the results of relationships between the members. In addition, all members of a network are either directly or indirectly linked to each other (Casson & Giusta 2007). Thus, networks consist of a set of elements or members that are connected to each other as a result of the relationships of the members. Therefore, your class is made up of a network of individual members called students. Also, your church is made up of a network of Indi dual people called brethren as well as your family is made of a network of individual persons called family members. Almost in every situation in normal life and business, a network is bound to exist. This makes me tempted to say Man cannot live without a network, so also do businesses need networks to survive. I find it challenging when I hear people say, “I don’t need another man in this life” or “I can succeed without the help of any man” and there are many examples of such comment’s rights? I’m sure you too often hear people make statements. It's funny, and yes truly funny because such statements are made may be from ignorance or usually from nonsense pride. Hear me and hear me well! Even to go to heaven, you need God’s network if not you lie yourself. One famous Cameroonian politician once said, “you scratch my back, I scratch your back”. Therefore, the importance of networks cannot be overemphasized in business.
Carol Bartz transformed Autodesk from a small single product company into one of the largest software providers in the world during her 14 year tenure as CEO. As Executive Chairman, she continues to help Autodesk expand into emerging markets. The document provides details on Autodesk's financial performance, leadership changes, and stock option review that resulted in financial restatements.
Using these slides, I presented my paper titled "Institutional works in scholarly networks: A rapprochement between agency and structure" at the 2014 Academy of Management annual meeting. In the paper, I attempt to find an answer to the question: how noble ideas emerge in academia?
Ruth Stevens and Bernice Grossman analyzed the relative quality of prospecting databases available to B-to-B marketers. Based on research in 2010 on compiled data, with 5 vendors participating (Demandbase, D&B, Infogroup, Jigsaw and Netprospex), and in 2011 on response data, with 3 vendors (Infogroup, Mardev DM2 and Worldata), we also offer tips on how to pre-test vendor options and make sensible vendor selection decisions.
The Computer Sciences Corporation 1999 Annual Report provides an overview of the company's performance in fiscal year 1999. Some key points:
- Revenues totaled $7.7 billion, a 16% increase over 1998, driven by strong demand for consulting and systems integration services.
- Net income increased 31% to $341 million.
- Over $5 billion in new contracts were announced, including a potential $8 billion contract with the IRS.
- The company had over 50,000 employees serving customers in industry and government around the world.
Social network analysis (SNA) - Big data and social data - Telecommunications...Wael Elrifai
Social Network Analysis: Practical Uses and Implementation is a presentation that discusses social network analysis and its practical applications. It introduces key concepts such as social networks, social network analysis, roles in social networks, and graph theory. It also covers metrics and implementations of social network analysis, including calculating metrics from social networks and recommended approaches involving data preparation, metric calculation, model creation and scoring, and measurement. The presentation provides an overview of how social network analysis can be a useful tool for understanding relationships and influence.
USING STRUCTURAL HOLES METRICS FROM COMMUNICATION NETWORKS TO PREDICT CHANGE ...Igor Wiese
This document examines using structural hole metrics (SHM) from communication networks to predict change dependencies between software artifacts. It finds that SHM can predict change dependencies with an area under the curve over 0.7. Constraint and hierarchy SHM were most important for one project, while commits and updates were most important when including process metrics. The study provides initial evidence that SHM obtained from communication networks can predict change dependencies as suggested by Conway's Law. Future work could explore additional projects, metrics, and comparisons to other software aspects.
This document summarizes a presentation on inter-firm networks and cluster development. It defines networks as organizational forms between markets and hierarchies that involve more structure and interaction than markets. Key points:
- Networks are defined by the relationships between organizations and their interactions, with a common goal but different specific goals.
- Italy has over 200 recognized industrial districts concentrated in traditional industries like textiles and machinery. Districts involve geographic proximity, specialization, and intensive inter-firm cooperation.
- Factors supporting networks/districts include locational economies, social capital like trust, and collective learning. Policy can facilitate growth and innovation. Successful networks transition to global, virtual partnerships leveraging new technologies.
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This document discusses network capability in event management ventures in Kenya. It defines network capability as a firm's ability to develop and manage multiple relationships. The study aims to establish indicators that can measure network capability, which according to previous research has four dimensions: coordination, relational skills, partner knowledge, and internal communication. The results of the study indicate that these dimensions can be used to measure network capability in event management ventures, and that open communication, knowledge of partners, initiating relationships, and developing relationships are crucial aspects.
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Cisco, in partnership with Intel®, sought to pinpoint how cloud is impacting IT. 4,226 IT leaders in 18 industries across nine key economies, developed as well as emerging were surveyed. The study results highlighted some interesting findings on IT's view of cloud, LOBs' increasing influence on IT purchasing, and what the future holds.
This document discusses the role of architecture in enabling boundaryless information flow. It describes how multiple individual systems have created boundaries that inhibit information sharing. The Open Group's vision is to achieve boundaryless information flow through global interoperability. The document outlines how architecture can guide various stages of the system development life cycle to help break down boundaries and ensure integration. It also provides an overview of The Open Group's architecture forum and framework.
One of the clearest expressions of this cloud-driven change is the emergence of lines of business (LOBs) — human resources, sales, R&D, and other areas that are end users of IT — both as direct consumers of cloud-based services, and as ever more prominent influencers of companies’ IT agendas.
Dr Berre - Service Modelling and Representation TechniquesServiceWave 2010
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Service Modelling and Representation Techniques ServiceWave 2010
Service Modelling and Representation Techniques (SMART) provides an Enterprise Architecture perspective on emerging standards like VDM, USDL, and SoaML. The keynote discusses these standards, as well as business architecture frameworks like Zachman and RM-ODP. Projects like NEFFICS and SHAPE are working to integrate techniques like business modeling, value modeling, SoaML, and more to support service innovation.
Service Modelling and Representation Techniques - a holistic Enterprise Arch...ServiceWave 2010
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Dr. Arne-Jørgen Berre
SINTEF
Networked Systems and Services
Ghent, Dec 13th, 2010
Service Wave 2010 - FIA
The document discusses stakeholder engagement and co-creation in projects to reduce risks. It advocates using a "net∞WORK mindset" and viewing organizations as complex networks of relationships. Co-creating projects with stakeholders is presented as building social capital that reduces risks. The document provides examples of using social networks and collaboration tools to engage stakeholders and outlines seven essentials for co-creating projects.
The document discusses developing a method and tool to assess the reengineering of business networks. It defines key aspects of business networks, such as their flexible and dynamic nature. The authors developed a 14-step research method and decision support system called the Business Network Navigator to assess margin improvements in business networks. They tested this method on the business network of the European Patent Office to analyze the impact of redesigning it and present the results.
Unified IT approaches can help organizations address challenges from trends like BYOD and mobility. By unifying network policy, management, and operations through approaches like Cisco's Unified Access, organizations can regain control over their networks and infrastructure while still supporting new technologies and ways of working. Unified Access aims to create a single, integrated experience for users through "one policy, one management, one network." This integration can streamline operations and reduce costs while enabling new opportunities for employee productivity and improved customer engagement. MGM Resorts International and Sheetz are examples of companies reinventing their businesses through unified IT strategies.
This document discusses the MUPPITS project, which aimed to address challenges in the UK film and broadcasting post-production industry through new technology and systemic work design. MUPPITS brought together key players in the post-production value chain and used qualitative and quantitative methods to track the emergence of new systems over time. The document examines how possible trajectories were identified and tested, and how 'ephemeral emergents' evolved into more stable variants, shifting discussions from value creation to value capture. It also discusses how the underlying technology arose from another sector but had disruptive potential when applied to challenges in media industries like growing digital workflows.
Network Forms of Open Innovation: Ecosystems, Platforms, Communities and Cons...Joel West
1. The document discusses open innovation in the context of networks, including ecosystems, platforms, communities, and consortia.
2. These network forms are understudied in open innovation research despite their natural fit with open innovation concepts.
3. There is an opportunity for more research on how open innovation relates to and is impacted by different network structures and forms of organization.
TCI 2014 Evolving the Regional Innovation Cluster Paradigm for an Innovation ...TCI Network
This document discusses using network analysis of innovation data to better understand and support regional innovation clusters. It argues that current cluster analysis is limited because it relies on past employment data and assumes clusters are geographically bounded. Network analysis can help identify emerging technologies and opportunities by revealing active collaboration networks. Examples are provided of network analysis of innovation data in various regions that uncovered core clusters, talent pools, and opportunities to better support innovation-driven growth.
1. The document discusses business networks and relationships. It provides examples of supplier networks using Toyota and distribution networks using IBM.
2. Networks are made up of various relationships between companies, including indirect relationships. A company's position in a network depends on its relationships with other companies.
3. Business relationships between companies have three layers - activity links, resource ties, and actor bonds - that connect their internal activities, resources, and how the people in the companies perceive each other.
This document defines and discusses network organizations. Network organizations are long-term arrangements between distinct but related organizations that allow them to gain competitive advantages. They are characterized by elements of shared structure, processes, and goals. Network organizations can foster learning and adaptability but also face challenges with coordination and trust. They are categorized as internal, stable, or dynamic networks. Virtual organizations are a special type of temporary network. Examples of network organizations discussed include Sun Microsystems, Nike, Dell, and Reuters.
Web Services og SOA – hvordan vi ser for oss bruk i fremtiden?Brian Elvesæter
This document discusses service-oriented architecture (SOA) and web services. It begins by defining SOA, web services architecture, and how they relate to enterprise architecture. It then covers topics like interoperability, integration approaches in SOA, and the evolution of web services standards. Semantic web services are introduced as the next generation that aims to automate discovery, composition and execution of web services through semantic annotations and ontologies. Research directions like model-driven architecture and combining different modeling languages are also mentioned. In summary, the document provides an overview of SOA, web services, integration, interoperability and research trends in the area.
A workshop hosted by the South African Journal of Science aimed at postgraduate students and early career researchers with little or no experience in writing and publishing journal articles.
This document summarizes a presentation on inter-firm networks and cluster development. It defines networks as organizational forms between markets and hierarchies that involve more structure and interaction than markets. Key points:
- Networks are defined by the relationships between organizations and their interactions, with a common goal but different specific goals.
- Italy has over 200 recognized industrial districts concentrated in traditional industries like textiles and machinery. Districts involve geographic proximity, specialization, and intensive inter-firm cooperation.
- Factors supporting networks/districts include locational economies, social capital like trust, and collective learning. Policy can facilitate growth and innovation. Successful networks transition to global, virtual partnerships leveraging new technologies.
Network capability dimension in minor event management ventures in kenyaAlexander Decker
This document discusses network capability in event management ventures in Kenya. It defines network capability as a firm's ability to develop and manage multiple relationships. The study aims to establish indicators that can measure network capability, which according to previous research has four dimensions: coordination, relational skills, partner knowledge, and internal communication. The results of the study indicate that these dimensions can be used to measure network capability in event management ventures, and that open communication, knowledge of partners, initiating relationships, and developing relationships are crucial aspects.
Impact of Cloud on IT Consumption ModelsHiten Sethi
Cisco, in partnership with Intel®, sought to pinpoint how cloud is impacting IT. 4,226 IT leaders in 18 industries across nine key economies, developed as well as emerging were surveyed. The study results highlighted some interesting findings on IT's view of cloud, LOBs' increasing influence on IT purchasing, and what the future holds.
This document discusses the role of architecture in enabling boundaryless information flow. It describes how multiple individual systems have created boundaries that inhibit information sharing. The Open Group's vision is to achieve boundaryless information flow through global interoperability. The document outlines how architecture can guide various stages of the system development life cycle to help break down boundaries and ensure integration. It also provides an overview of The Open Group's architecture forum and framework.
One of the clearest expressions of this cloud-driven change is the emergence of lines of business (LOBs) — human resources, sales, R&D, and other areas that are end users of IT — both as direct consumers of cloud-based services, and as ever more prominent influencers of companies’ IT agendas.
Dr Berre - Service Modelling and Representation TechniquesServiceWave 2010
The document discusses Service Modelling and Representation Techniques from an Enterprise Architecture perspective, focusing on standards like VDM, USDL, and SoaML. It provides an agenda covering topics like business and IT architecture frameworks, service definitions, modeling languages, and how these techniques can influence emerging standards. Examples are given of modeling business processes and services using notations like e3Value, REA, SoaML, and USDL.
Service Modelling and Representation Techniques ServiceWave 2010
Service Modelling and Representation Techniques (SMART) provides an Enterprise Architecture perspective on emerging standards like VDM, USDL, and SoaML. The keynote discusses these standards, as well as business architecture frameworks like Zachman and RM-ODP. Projects like NEFFICS and SHAPE are working to integrate techniques like business modeling, value modeling, SoaML, and more to support service innovation.
Service Modelling and Representation Techniques - a holistic Enterprise Arch...ServiceWave 2010
Service Modelling and Representation Techniques - a holistic Enterprise Architecture perspective on using and influencing the emerging standards of VDM, USDL and SoaML
Dr. Arne-Jørgen Berre
SINTEF
Networked Systems and Services
Ghent, Dec 13th, 2010
Service Wave 2010 - FIA
The document discusses stakeholder engagement and co-creation in projects to reduce risks. It advocates using a "net∞WORK mindset" and viewing organizations as complex networks of relationships. Co-creating projects with stakeholders is presented as building social capital that reduces risks. The document provides examples of using social networks and collaboration tools to engage stakeholders and outlines seven essentials for co-creating projects.
The document discusses developing a method and tool to assess the reengineering of business networks. It defines key aspects of business networks, such as their flexible and dynamic nature. The authors developed a 14-step research method and decision support system called the Business Network Navigator to assess margin improvements in business networks. They tested this method on the business network of the European Patent Office to analyze the impact of redesigning it and present the results.
Unified IT approaches can help organizations address challenges from trends like BYOD and mobility. By unifying network policy, management, and operations through approaches like Cisco's Unified Access, organizations can regain control over their networks and infrastructure while still supporting new technologies and ways of working. Unified Access aims to create a single, integrated experience for users through "one policy, one management, one network." This integration can streamline operations and reduce costs while enabling new opportunities for employee productivity and improved customer engagement. MGM Resorts International and Sheetz are examples of companies reinventing their businesses through unified IT strategies.
This document discusses the MUPPITS project, which aimed to address challenges in the UK film and broadcasting post-production industry through new technology and systemic work design. MUPPITS brought together key players in the post-production value chain and used qualitative and quantitative methods to track the emergence of new systems over time. The document examines how possible trajectories were identified and tested, and how 'ephemeral emergents' evolved into more stable variants, shifting discussions from value creation to value capture. It also discusses how the underlying technology arose from another sector but had disruptive potential when applied to challenges in media industries like growing digital workflows.
Network Forms of Open Innovation: Ecosystems, Platforms, Communities and Cons...Joel West
1. The document discusses open innovation in the context of networks, including ecosystems, platforms, communities, and consortia.
2. These network forms are understudied in open innovation research despite their natural fit with open innovation concepts.
3. There is an opportunity for more research on how open innovation relates to and is impacted by different network structures and forms of organization.
TCI 2014 Evolving the Regional Innovation Cluster Paradigm for an Innovation ...TCI Network
This document discusses using network analysis of innovation data to better understand and support regional innovation clusters. It argues that current cluster analysis is limited because it relies on past employment data and assumes clusters are geographically bounded. Network analysis can help identify emerging technologies and opportunities by revealing active collaboration networks. Examples are provided of network analysis of innovation data in various regions that uncovered core clusters, talent pools, and opportunities to better support innovation-driven growth.
1. The document discusses business networks and relationships. It provides examples of supplier networks using Toyota and distribution networks using IBM.
2. Networks are made up of various relationships between companies, including indirect relationships. A company's position in a network depends on its relationships with other companies.
3. Business relationships between companies have three layers - activity links, resource ties, and actor bonds - that connect their internal activities, resources, and how the people in the companies perceive each other.
This document defines and discusses network organizations. Network organizations are long-term arrangements between distinct but related organizations that allow them to gain competitive advantages. They are characterized by elements of shared structure, processes, and goals. Network organizations can foster learning and adaptability but also face challenges with coordination and trust. They are categorized as internal, stable, or dynamic networks. Virtual organizations are a special type of temporary network. Examples of network organizations discussed include Sun Microsystems, Nike, Dell, and Reuters.
Web Services og SOA – hvordan vi ser for oss bruk i fremtiden?Brian Elvesæter
This document discusses service-oriented architecture (SOA) and web services. It begins by defining SOA, web services architecture, and how they relate to enterprise architecture. It then covers topics like interoperability, integration approaches in SOA, and the evolution of web services standards. Semantic web services are introduced as the next generation that aims to automate discovery, composition and execution of web services through semantic annotations and ontologies. Research directions like model-driven architecture and combining different modeling languages are also mentioned. In summary, the document provides an overview of SOA, web services, integration, interoperability and research trends in the area.
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Presentazione Soda - Networks And Innovation
1. Networks and innovation
Giuseppe Soda
Claudio Dematté Research Division
Prepared for Area Tec. Seminar, September 2009
Copyright SDA Bocconi 2005
2. Key Notion of Network
(relational) paradigm
The principal idea:
Economic action and
organizational performance are
influenced by the nature and the
structure of the relations between
and among organizational actors
3. Key Notion of Network (relational) paradigm
• Three perspectives:
– Network Analysis (social) as a Prism: networks as an analytical
device for illuminating relations, not necessarily social, whether
inside a firm, in the inter-organizational ties that link firms, or in the
environments of organizations;
– Ties and Structures of Ties as Explanatory concepts: network
theory (structural) argue that behaviors, actions, decisions, are best
discovered by examining relations among actors rather than just
their attributes;
– Networks as Org. Forms: it views networks as a kind of
organizing logic, a way of governing relations among economic
actors.
4. What is a network?
• A set of nodes (e.g. individuals, groups,
organizations) linked by a set of relationships
(Laumann et al., 1978)
• Relationships or ties can be
– Directed (one-directional)
– Undirected (as in being physically proximate)
– Dichotomous (present or absent)
– Valued (considering the strength)
5. Network perspective
in the management literature
• Network perspective builds on the general notion that economic
action does not take place in a solitary social context but it is
embedded within networks of interconnected relationships providing
opportunities and constraints on behaviour (Granovetter, 1973).
• Network perspective analyzes how the structure of relationships
influences performance and gives to the actors, such as individuals,
teams and organizations, the ability to acquire information, expertise
and other resources (Laumann et al., 1978; Fombrun, 1982;
Stinchcombe, 1990; Krackhardt, 1990; Burt, 1992; Ancona and
Caldwell, 1992; Brass and Burkhardt, 1993; Mizruchi, 1994; Powell
and Smith-Doerr, 1994; Ibarra, 1995; Podolny and Baron, 1997;
Brass, Galaskiewicz, Greve and Tsai, 2004; Rodan and Galunic,
2004).
• Network ties transmit information and are thought to be especially
influential information conduits because they provide salient and
trusted information that is likely to affect behaviour (Podolny, 2001).
7. Role of networks in innovation
• Through network ties and network structures organizations
can pool or exchange resources and develop new ideas
giving access to more diverse sources of information and
capabilities (1994; Powell, Koput and Smith-Doerr, 1996;
Obstfeld, 2005, Soda et al. 2004; Soda and Zaheer, 2009).
• Networks constitute a critical locus for knowledge creation
and innovation providing access to information, resources
and support necessary for new ideas (Powell and Brantley,
1992; Ibarra, 1993; Shan, Walker, and Kogut).
8. Networks and level of analysis
• Influence of network structures on innovation has been
investigated at
– Individual, team and organizational levels (Krackhardt, 1990;
Burt, 1992; Ancona and Caldwell, 1992; Brass and Burkhardt,
1993; Ibarra, 1995; Podolny and Baron, 1997; Rodan and
Galunic, 2004)
– Internal relations within teams and organizations (Gulati, 1998;
Rowley et al., 2000; Hansen, 1999, 2002; Tsai, 2001; Tsai and
Ghoshal, 2002; Gupta and Govindarajan, 2000; Levin and Cross,
2004)
– External relations among individuals, teams and organizations
(Ancona and Caldwell, 1992; Podolny, Stuart, Hannan, 1996).
9. Mixed empirical results on the relationship
between network structure and innovation
• Empirical evidence deriving from brokerage versus
closure argument on innovation is mixed
– Ahuja, (2000); Rowley et al., (2000); Obstfeld, (2005);
Uzzi and Spiro, (2005), Soda (2008) found at different
levels of analysis a positive impact of network closure
on innovation
– Baum et al., (2000); Ruef, (2002); Rodan and Galunic,
(2004); Zaheer and Bell, (2005); Fleming et al., (2007),
found a positive impact of brokerage on innovation
10. Exploiting structural position rents: Generating
innovation through strategic alliances networks
Giuseppe Soda
Copyright SDA Bocconi 2005
11. Strategic alliances
and firm performance
Alliance is a voluntary, interorganizational, formal
or informal agreement of cooperation or coordination
including exchange, sharing and joint development of
idiosyncratic assets, knowledge, and resources/
capabilities among the partners (Dyer, Singh 1998).
12. How does network position matter?
Usually managers:
• do not look at the alliance portfolio and whole network of
alliances in which they are embedded;
• they underestimate the impact of the positioning strategy
in the industry network of alliances
This research investigates the impact of network position on
firm performance.
More specifically we investigate to which extent product and
process innovation capacity can be affected by the position in
a network of strategic alliances
14. Research questions
• Does network centrality enhance
innovation outcomes?
• How network centrality makes influences
on innovation processes?
• Brokerage or closure?
15. Brokerage and Structural holes illustrated
Disconnections between neighbors and hence “entrepreneurial
opportunities for information access, timing, referrals, and control.”
Figure 1 - Illustration of Weak Ties and Structural Holes
1
Strong Ties
Weak Ties
1’s Ties to 2 and 3
Bridge Structural Hole
Structural Hole
2 3
16. The classic controversy between
cohesion and brokerage
• Coleman (1988): “closed • Granovetter (1973)
social structure engenders “ties within closed networks
trust because it enables are strong and connect you
collective sanctions” to similar others while weak
• Trust enables greater ties connect you to
sharing of resources, risk dissimilar others and fresh
and information info”
• Redundant ties facilitate • Cohesive networks recycle
information flow redundant information
• Easier coordination and • Brokerage provides power
mobilization and control advantages
20. Data
• 359 JVs 2001-2006
• 592 firms, 1136 links Figura 4: finalità delle Joint Venture
• Contents of Jvs: 60
– Assembling 50
– Commercial 40
30
– R&D 20
– Services 10
Production
Services
Commercial
– Production 0
2001
R&D
2002 Assembling
2003
2004
2005
2006
Assembling R&D Commercial Services Production
21. Data
• Patents (2001-2006) for all sampled firms.
Figura 9: numero brevetti e nuove alleanze
90 100
70 80
50 60
30 40
10 20
-10 0
2003 2004 2005 2006
Brevetti (migliaia) Nuove alleanze
22. Variables and analysis
Variables
Dependent variable:
Number of patents presented by the companies to the USPTO in the years 2004-2005-2006.
Although patents could not perfectly represent firms’ innovative capacity, they are a proxy used in several
studies (Powell, Koput, Smith-Doerr 1996; Hagedoorn 2002,; Ahuja 2000).
We considered presented and not registered patents in order to guarantee data homogeneity because the
time windows for the patents registration could be different for the several patents.
Independent variables
Cohesion is operationalized using the Density measure. Density is equal to (D = 2k / n*(n-1)), where k is
the number of existing ties among all the partners in the network and n is the number of partners in the
network.
Brokerage is operationalized using the Effective Size measure (Burt, 1992) that is equal to the number of
partners to which focal firm is connected minus the mean of partners belonging to the ego-network .
Control variables
Country is a dummy variable for the geographic area (Asia Pacific, Europe e North America)
Industry - Sic Code for the Production of complete vehicles (3711) and Production of components.
Analysis
We used Generalized Linear Model (GLM) selecting the Negative Binomial option to cope with the
overdispersion of the dependent variable (variance greater than mean)
23. Results
Patents 04
_____________________
b Std. Err.
Ego Density 01-03 -.01 .00
Structural Holes 01-03 .66 *** .15
Country Asia Pacific .95 *** .19
Country .88 ** .28
Sic 3711 -.04 .19
_cons 3.60 .20
Patents 05
_____________________
b Std. Err.
Ego Density 02-04 -.01 * .00
Structural Holes 02-04 .69 *** .12
Country Asia Pacific .92 *** .24
Country 1.55 *** .34
Sic 3711 .72 ** .22
_cons 3.22 .27
Patents 06
_____________________
b Std. Err.
Ego Density 03-05 -.02 *** .00
Structural Holes 03-05 .67 ** .22
Country Asia Pacific -.34 .29
Country Europe .34 .28 * p < .05
Sic 3714 .35 .20 ** p < .01
_cons 4.29 .31 *** p < .001
24. Conclusions
• Network position matters
Figure 1 - Illustration of Weak Ties and Structural Holes
• Bridging structural holes
enhance innovation
1
Strong Ties
• Network closure is Weak Ties
detrimental for
innovation 1’s Ties to 2 and 3
Bridge Structural Hole
Structural Hole
2 3