Technological shocks, and the timing and direction of the evolution of firms' networks: A case of the compact disc industry

Abstract

Abstract: Based on the longitudinal case study, the paper takes the alliance networks in the compact disc industry between 1995 and 2008 as the case and investigates the network evolution process by analyzing the timing and direction of the evolution of the firms' networks. We characterize the timing of network evolution by using the key industry events as “the time window”, while the evolution direction of firms' networks is characterized by structure-reinforcing and structure-loosening effects. We argue that firms' network evolution is the response to the key industry events, which may be structure-reinforcing or structure-loosening. By analyzing the characteristics of key industry events, managers may identify the different effects of key industry events on network structure in advance. Managers can then take proper strategic actions to shape the network structure and create favorable environment for firms to gain competitive advantages.

Key words: technological shocks, structure-reinforcing effects, structure-loosening effects, network evolution, compact disc industry

CLC Number:

C935
F062.4

Song Zhihong, Shi Yuying, Li Dongmei. Technological shocks, and the timing and direction of the evolution of firms' networks: A case of the compact disc industry[J]. Science Research Management, 2015, 36(7): 113-121.

References

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