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On the information value of (un)embedded network ties

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Working paper
Author/s: 
John Hagedoorn, Wilko Letterie and Franz Palm
Issue number: 
RM/07/004
Publisher: 
Maastricht University
Year: 
2007
A firm sets up a network of information generating alliances to reduce technological uncertainty. This alliance group creates both advantages associated with similarity of existing partners and limitations due to restricted choice of new partners. Our model analyses the conditions (technological uncertainty, information overlap, alliance search costs, and the number of previous alliances) under which a firm opts for an embedded tie within an existing network or an unembedded tie with a new partner.
Developed by Paolo Gittoi