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Professor of Entrepreneurship
Gulati R., Gargiulo M. (1999). Where Do Interorganizational Networks Come From? American Journal of Sociology, 104(5), pp. 1439-1493.
The emergence of interorganizational networks is shaped by an endogenous dynamic between embedded organizational action and the social structure that emerges from that action. Organizations enter ties to access critical resources, but they rely on signals from the emerging network to decide with whom to form partnerships.Consistent with this image, the authors show that the profitability of a new alliance between specific organizations increases with their interdependence, but also with their prior mutual alliances, common third parties, and centrality in the alliance network.The structural differentiation of the emerging network mitigates the effect of interdependence and enhances effect of network centrality on new alliance formation.