Catching the Wave: Alertness, Responsiveness, and Market Influence in Global Electronic Networks

Akbar Zaheer and Srilata Zaheer
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Akbar Zaheer: Curtis L. Carlson School of Management, University of Minnesota, Minneapolis, Minnesota 55455
Srilata Zaheer: Curtis L. Carlson School of Management, University of Minnesota, Minneapolis, Minnesota 55455

Management Science, 1997, vol. 43, issue 11, 1493-1509

Abstract: This paper introduces the concepts of alertness and responsiveness as key capabilities for firms in fast-moving, information-intensive environments such as global currency trading. Hypotheses drawn from the resource-based view of the firm, from network theory, and from Austrian economics are tested on objective cross-section and time-series data for the population of 4,088 banks engaged in foreign-exchange trading on the Reuters dealing system. Results strongly support the hypotheses that banks that are alert, i.e., use their information networks in ways that expand the range of information they are exposed to, and responsive---those that act quickly in volatile markets---tend to exercise greater market influence in this industry.

Keywords: alertness; responsiveness; capabilities; network theory; resource-based view; Austrian economics; electronic networks; currency trading; financial services (search for similar items in EconPapers)
Date: 1997
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Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:43:y:1997:i:11:p:1493-1509

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