Social capital, strategic relatedness and the formation of intraorganizational linkages

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Abstract

This paper investigates the evolutionary dynamics of network formation by analyzing how organizational units create new interunit linkages for resource exchange. Using sociometric techniques and event history analysis, this study predicts the rate at which new interunit linkages are created between a newly formed unit and all the existing units in a large multinational organization. Two important constructs: social capital, derived from the literature on social structure and network formation, and strategic relatedness, derived from research on diversification and the resource-based view of the firm, are used to explain the rate of new linkage creation. Results show that the interaction between social capital and strategic relatedness significantly affects the formation of intraorganizational linkages.

Original languageEnglish (US)
Pages (from-to)925-939
Number of pages15
JournalStrategic Management Journal
Volume21
Issue number9
DOIs
StatePublished - Sep 2000

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Strategy and Management

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