Social capital and competitive behavior: A study of interfirm networks and rivalry among automakers

Goce Andrevski, Walter J. Ferrier, Daniel J. Brass

Research output: Contribution to conferencePaperpeer-review

6 Scopus citations

Abstract

This paper explores how the differential access to network resources influences firms' competitive behavior in the automobile industry. Specifically, we explore how the capability of firms to compete with a greater number and variety of competitive actions is influenced by the changes in the access to both the structural and relational aspects of social capital. The structural aspect of the social capital is depicted by the network centrality and structural autonomy of the firms in the network, whereas the relational aspect is approximated by the functional variety of the alliance types (e.g., R&D, marketing, manufacturing, finance, distribution, etc.). Our empirical investigation showed that the diversity of the alliance types is positively related to the firms' ability to compete more intensively and with a wide variety of action types. Our findings suggest that it is the diversity and the non-redundancy of the ties with network partners (rather than the total number of alliances) that are most critical for an automaker's ability to out-compete rivals.

Original languageEnglish
DOIs
StatePublished - 2007
Event67th Annual Meeting of the Academy of Management, AOM 2007 - Philadelphia, PA, United States
Duration: Aug 3 2007Aug 8 2007

Conference

Conference67th Annual Meeting of the Academy of Management, AOM 2007
Country/TerritoryUnited States
CityPhiladelphia, PA
Period8/3/078/8/07

Keywords

  • Austrian economics
  • Competitive dynamics
  • Interorganizational networks

ASJC Scopus subject areas

  • Management of Technology and Innovation
  • Management Information Systems

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