By Planet3 Wireless
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Additional info for CWAP Certified Wireless Analysis Professional Official Study Guide (Exam PW0-300)
In short, ties accumulated over time can make available rich information regarding new alliance opportunities with reliable partners (Kogut, Shan, and Walker 1992; Gulati 1995b; Powell, Koput, and Smith-Doerr 1996). However, networks may also constrain a ﬁrm’s set of choices for alliances by (a) limiting the circle of potential partners about whom it has information and (b) providing no information about nonparticipants. Indeed, the network resources ﬁrms receive from their participation in interﬁrm networks are akin to the social capital of individuals that Coleman (1988: S98) discussed in his seminal essay on the topic: [S]ocial capital inheres in the structure of relations between actors and among actors.
The empirical study in this chapter suggests that the choice of alliance structure is inﬂuenced by concerns regarding both appropriation and coordination costs. Governance structures are thus a response not only to appropriation concerns but also to those emanating from the likely coordination challenges. By shaping both these anticipated concerns at the time of alliance formation, network resources aﬀect the type of governance structure used. From the standpoint of my investigation of network resources in this book, it is important to note that this study suggests that prior ties that engender network resources by serving as channels of information can mitigate both types of concerns.
It is likely that network resources originating in sets of prior ties between ﬁrms not only provide information that allows them to enter into new partnerships but also impact the structure they may use to formalize the alliance. In this section, I continue to explore the role of network resources arising from networks serving as conduits of information that reduce uncertainty and also consider their eﬀects on the governance structure of those ties. In Chapter 5, I examine how the familiarity gained by ﬁrms through their prior alliances engenders network resources for them that in turn foster interorganizational trust and reduce the need for hierarchical controls in the partnership.