Asymmetric Effects of Fashions on the Formation and Dissolution of Networks: Board Interlocks with Internet Companies, 1996–2006

Lori Qingyuan Yue ()
Additional contact information
Lori Qingyuan Yue: Marshall School of Business, University of Southern California, Los Angeles, California 90089

Organization Science, 2012, vol. 23, issue 4, 1114-1134

Abstract: This paper extends the contextual perspective of network evolution to account for a more complete process of network evolution by showing that the impacts of fads and fashions on the formation and dissolution of interorganizational networks are asymmetric. Building on contact theory, this paper proposes that direct contact affords a flow of knowledge that counters tendencies to social conformity. Network dissolution differs from network formation in that partners have already obtained direct information. As a result, network dissolution is not as responsive to fads and fashions as network formation, and network structures induced by fads and fashions often survive beyond the life cycle of a fashion. An analysis of the interlocking ties of S&P 1500 firms with Internet companies from 1996 to 2006 supports the view that fads and fashions have asymmetric effects on the evolution of networks and also shows that (1) fads and fashions have a strong impact on the formation of networks but not on their dissolution, (2) the networking behaviors of organizations with direct contact are less induced by fads and fashions, and (3) the networks formed by organizations with direct contact during the heyday of a fashion survive longer.

Keywords: network evolution; board interlocks; fashion; Internet firms (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://dx.doi.org/10.1287/orsc.1110.0683 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:ororsc:v:23:y:2012:i:4:p:1114-1134

Access Statistics for this article

More articles in Organization Science from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().