Better with Age? Tie Longevity and the Performance Implications of Bridging and Closure

Joel A. C. Baum (), Bill McEvily () and Tim J. Rowley ()
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Joel A. C. Baum: Rotman School of Management, University of Toronto, Toronto, Ontario M5S 3E6, Canada
Bill McEvily: Rotman School of Management, University of Toronto, Toronto, Ontario M5S 3E6, Canada
Tim J. Rowley: Rotman School of Management, University of Toronto, Toronto, Ontario M5S 3E6, Canada

Organization Science, 2012, vol. 23, issue 2, 529-546

Abstract: We examine the extent to which performance effects of firms' network positions vary with the ages of the ties comprising those positions. Our analysis of Canadian investment banks' underwriting syndicate ties indicates that the performance benefits of closure ties increase with age, whereas benefits of bridging ties decrease with age. We also find that benefits yielded by hybrid network positions, combining elements of both closure and bridging, are greatest when old closure ties are combined with either very young or very old bridging ties. Our findings support the idea that the advantages firms gain (or do not) from their network positions depend on the relational character of the ties comprising them, highlighting the risk of theorizing structural network effects without also considering the relational and temporal dynamics associated with network positions.

Keywords: strategy and firm performance; strategy and policy; strategic alliance networks; interorganizational relationships; organization and management theory (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (25)

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Persistent link: https://EconPapers.repec.org/RePEc:inm:ororsc:v:23:y:2012:i:2:p:529-546

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