Status change : The dynamic roles of resource, partner, and embeddedness explorations

Research output: Conference PapersRGC 32 - Refereed conference paper (without host publication)peer-review

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Original languageEnglish
Publication statusPublished - 12 Aug 2011

Conference

TitleAcademy of Management Annual Conference
PlaceUnited States
CitySan Antonio
Period12 - 16 August 2011

Abstract

What drives the change of firm status? Departing from prior studies that tend to treat firm status as a stable concept, we examine the fluctuation of firm status by linking the organizational exploration literature with the social network perspective. Viewing a firm as an adaptive actor embedded in a network, we argue that a firm’s exploration activities will alter its network status and such effects will vary at different development stages of an industry network. Specifically, resource exploration (expansion of firm resources) can enhance firm status, but more so when the industry network is at a late development stage. On the other hand, alliance partner exploration (addition of new partners in a firm’s ego network) and embeddedness exploration (occupancies of structural holes positions in an industry network) may risk undermining firm status, though the impacts are weaker when the industry network is at an early development stage. Utilizing a method combining empirical data of four industries and an agent-based simulation model, we find support for our hypotheses. Our findings not only suggest unique impacts of the multi-dimensional firm exploration activities on status change, but also reveal a dynamic role of the network development.

Citation Format(s)

Status change: The dynamic roles of resource, partner, and embeddedness explorations. / WENG, David H; Lin, Zhiang (John).
2011. Paper presented at Academy of Management Annual Conference, San Antonio, United States.

Research output: Conference PapersRGC 32 - Refereed conference paper (without host publication)peer-review