How Strategic Orientation Affects Inter-Organizational Networks in Uncertain Environment

Alison Rieple; Marco Pironti; Paola Pisano
This article deals with business network and cluster dynamics, as well as inter-firm joint-ventures and collaborations, in order to study their evolution and possible effects when radical innovation occurs inside them. Each network transformation is brought about by specific combination of changes in tie creation, tie deletion and power inside the network. In the present work an agent based model is introduced (E³), which aims to explore how innovation diffusion can facilitate network formation of existing enterprises, affect network topology (e.g. an enterprise owning an innovative process could become a focal point), induce new players to enter the market and spread onto the network by being shared or internally acquired by new players. In order to study these dynamics, with regards to the optimal balancing among different strategies and the importance of exogenous parameters in cluster creation, a model is presented. It follows the agent based paradigm, particularly suited for describing complex social systems in which many parts interact among them. This allows creating simulations of the analyzed system and testing different hypothesis. Besides, it’s a paradigm in which the emergent features of complex systems can arise spontaneously, thanks to the bottom-up design. A model is introduced and described in detail. Qualitative results supported by an empirical case study are described, reflecting current state-of-the art theories. The results show how clusters emerge and evolve among enterprises, and how radical innovation can trigger this phenomenon.
Network Dynamic; Radical Innovation; Innovation Diffusion; Agent Based Model
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